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Johannesburg/New York - South African share prices rose for a third straight session on Friday, buoyed by stronger-than-expected jobs data out of the United States.
However, shares in gold firms were hit as investors poured money into riskier assets.
The index of Johannesburg-listed bullion miners slid by more than 1% with Harmony Gold falling 1.6% to R93.53.
The US government’s employment report - which showed non-farm payrolls increased by 103 000 - was seen as a sign the world’s largest economy could yet avoid recession. Economists had expected only a 60 000 rise in last month’s figures.
“They came in better than expected, so the market is having a little bit of a rally on that,” said Kevin Reinstein, a trader at Newstrading. “It looks like we are going to have a strong week (next week).”
The Top 40 - (Tradeable) [JSE:J200] blue-chip index closed 327.31 points higher, or up 1.2% at 27 001.46 and the All Share [JSE:J203] index gained by a similar margin to 30 244.90.
Stock prices on the JSE have lost nearly 6% of their value so far this year, undermined by the uncertainty over the global economy.
Citigroup warned on Friday it sees significant cuts to growth outlook for emerging European countries and South Africa.
Optimism helps euro
World stocks and the euro were higher midsession in New York on the jobs data.
But US stocks lost some ground late morning as investors continued to worry about the impact of a possible debt default by the Greek government after credit rating agencies downgraded some Portuguese and British banks as well as the Franco-German group Dexia.
The downgrades come ahead of summit talks on Sunday between German Chancellor Angela Merkel and French President Nicolas Sarkozy on ways to strengthen eurozone banks.
World stocks measured by the MSCI All-Country World index gained 0.8%.
The euro, which has fallen back from a 2011 peak near $1.50 in May, rose 0.54% to $1.3504.
Aggressive liquidity measures that the European Central Bank (ECB) unveiled on Thursday to help lenders facing straitened wholesale funding conditions also supported risk appetite, giving a boost to the euro.
However, earlier on Friday German data showed industry output in the European giant dropping 1.0% in August, a smaller-than-expected decline.
Prices of US government bonds were lower after the US employment data. Safe-haven investments such as US Treasury bonds sold off.
However, shares in gold firms were hit as investors poured money into riskier assets.
The index of Johannesburg-listed bullion miners slid by more than 1% with Harmony Gold falling 1.6% to R93.53.
The US government’s employment report - which showed non-farm payrolls increased by 103 000 - was seen as a sign the world’s largest economy could yet avoid recession. Economists had expected only a 60 000 rise in last month’s figures.
“They came in better than expected, so the market is having a little bit of a rally on that,” said Kevin Reinstein, a trader at Newstrading. “It looks like we are going to have a strong week (next week).”
The Top 40 - (Tradeable) [JSE:J200] blue-chip index closed 327.31 points higher, or up 1.2% at 27 001.46 and the All Share [JSE:J203] index gained by a similar margin to 30 244.90.
Stock prices on the JSE have lost nearly 6% of their value so far this year, undermined by the uncertainty over the global economy.
Citigroup warned on Friday it sees significant cuts to growth outlook for emerging European countries and South Africa.
Optimism helps euro
World stocks and the euro were higher midsession in New York on the jobs data.
But US stocks lost some ground late morning as investors continued to worry about the impact of a possible debt default by the Greek government after credit rating agencies downgraded some Portuguese and British banks as well as the Franco-German group Dexia.
The downgrades come ahead of summit talks on Sunday between German Chancellor Angela Merkel and French President Nicolas Sarkozy on ways to strengthen eurozone banks.
World stocks measured by the MSCI All-Country World index gained 0.8%.
The euro, which has fallen back from a 2011 peak near $1.50 in May, rose 0.54% to $1.3504.
Aggressive liquidity measures that the European Central Bank (ECB) unveiled on Thursday to help lenders facing straitened wholesale funding conditions also supported risk appetite, giving a boost to the euro.
However, earlier on Friday German data showed industry output in the European giant dropping 1.0% in August, a smaller-than-expected decline.
Prices of US government bonds were lower after the US employment data. Safe-haven investments such as US Treasury bonds sold off.
