JSE rallies following euro rescue plan
May 10 2010 11:21
Related Articles
Top Stories
May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 28 2012 07:53
The City of Cape Town has spent R175m running the Myciti bus service since the Soccer World Cup compared to an income of R35m, a report says.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - The JSE moved sharply into the black on Monday tracking positive global sentiment, following efforts by the European Central Bank (ECB) to prevent Greece's debt crisis from spreading to member countries.
On Friday the JSE shipped just under 1 000 points - 3.6% - tracking a freefall on Wall Street.
But by 09:30 the JSE All-share Index gained 3.07%, with resources 3.59% firmer, and platinum miners up 4.29%. Gold miners shed 2.10%.
Banks found 4.46%, financials added 3.27% and industrials were 2.38% stronger.
The rand was bid at 7.49 to the dollar from 7.69 at the JSE's close on Friday. Gold was quoted at $1 1196.68 a troy ounce from $1 199.40 at the JSE's last close. Platinum was at $1 690/oz, from $1 655/oz.
"The local bourse is quite a bit firmer today tracking the sentiment on global markets," a local trader said. "Greece and its potential spill over into neighbouring countries is still very much on the agenda, but it looks like there is some progress on a package for the stricken area."
Dow Jones Newswires reported that European stocks opened firm on Monday, adding early gains as investors cheered the EU's emergency package to stabilise the euro and prevent the Greek debt crisis from affecting other member countries. The measures will consist of up to €440bn in loans from euro-zone governments and €60bn from an EU emergency fund, in addition to €250bn from the IMF.
Eurozone policymakers surprised probably even the most optimistic observers by presenting a quick and forceful, unprecedented crisis package, said ING Bank. "It does not solve the fundamental fiscal problems but it gives countries now several years for swift action."
The euro rose sharply against the yen and dollar in Asia early Monday, as a series of remarks from the European Central Bank boosted hopes that the authorities have created the necessary safety-net. Japan's Nikkei 225 was up 1.4%, while South Korea's Kospi Composite gained 1.8%. Hong Kong's Hang Seng Index rose 1.3% and China's Shanghai Composite Index was up 0.1%.
The ECB said it would intervene in the euro zone's public and private debt markets to "ensure depth and liquidity in those market segments which are dysfunctional".
The European stability package is unparalleled in size and could help inject a little more risk appetite back into the trader mindset, said Ben Potter, research analyst at IG Markets. "Although, with equities having looked over bought for some time now, the movement of the last week or so could be seen as the long overdue correction in turn limiting scope for a quick rebound," he said.
In the UK, the Conservative and Liberal Democrat parties held almost seven hours of talks on Sunday on a possible power-sharing deal, but negotiations look set to stretch on for some time yet. Both sought to stress progress after Sunday's meeting, saying economic stability and reducing the budget deficit were at the centre of their discussions.
- I-Net Bridge
