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Johannesburg - Stocks on the JSE recovered on Tuesday‚ bouncing back from Monday’s plunge‚ after gold and other commodity prices regained some losses following a massive selloff on concerns that Europe might have to sell gold reserves.
Gains on the JSE were however curbed after the International Monetary Fund (IMF) on Tuesday afternoon cut SA’s economic growth forecast for next year to 3.3% from 4.1%.
The fund’s latest World Economic Outlook (WEO) report showed that it still expected SA to grow by 2.8% this year from 2.5% last year.
Commodity prices made a modest recovery after their biggest selloff in three decades. Gold tumbled $140.40 an ounce‚ or 9.4%‚ on Monday‚ its biggest one-day dollar decline in 33 years.
At 17:00‚ the JSE All Share [JSE:J203] index closed up 1.12% at 38 429.66 points‚ with the blue-chip Top 40 - (Tradeable) [JSE:J200] index adding 1.18%.
The platinum and resource gauges recouped 3.38% and 1.63% respectively. The gold gauge‚ however‚ ended flat (-0.03%).
At 17:00 local time the spot price of gold was 2.83% firmer on the day at $1 388.64/oz and platinum was 2.96% firmer at $1 447.50/oz.
“We saw a bit of moderation creeping into the market this afternoon after the IMF cut it growth forecast for SA. We ended with fairly good gains on the day which is related to the dollar gold price‚” said Mohammed Nalla‚ head of strategic research at Nedbank Capital.
“We saw a lot of momentum today due to bargain hunting‚ with commodities and gold counters recouping some of their recent losses‚ but there is still very much a risk-off sentiment towards commodities globally. The US opened marginally higher as investors remained cautious on negative global data prints since Friday‚” he said.
Major European stock markets were broadly lower‚ with London’s FTSE 100 seen 0.56% softer at 16:46 local time. Weak economic data out of Germany offset the bounce in commodities prices in European markets.
Germany's ZEW economic sentiment indicator dropped to 36.3 in April from March’s 46.5‚ well below forecasts of 43.0‚ Dow Jones Newswires reported.
Meanwhile across the Atlantic‚ US stocks opened higher on Tuesday as strong housing data and upbeat earnings reports helping spark a rebound from the previous session's selloff.
At 16:46 local time the Dow Jones industrial average was 0.46% firmer.
Earnings season continued in upbeat fashion‚ with shares of Coca-Cola and Johnson & Johnson rising after the companies reported better than expected first-quarter earnings. Goldman Sachs also topped earnings forecasts.
On the JSE‚ mining conglomerate Anglo American (AGL) was 1.81% firmer at R223.07‚ BHP Billiton (BIL) tacked on 1.86% at to R258.38 and Sasol (SOL) ended 1.17% firmer at R375.
Kumba Iron Ore (KIO) jumped 3.42% to R451.94 and Exxaro (EXX) was up 1.27% at R147‚ while Alert Steel (AET) bucked the trend‚ giving back 4% to R1.20.
Industrial counter Bidvest (BVT) gained 2.27% to R225 and Barloworld (BAW) was up 2.86% at R93.98.
In the gold sector Harmony (HAR) advanced 2.72% to R46.85‚ Gold One International (GDO) added 3.54% to R2.05‚ while AngloGold Ashanti (ANG) ended 1.47% lower at R172.42.
Among platinums Lonmin (LON) surged 8.85% to R39.11‚ Northam Platinum (NHM) added 1.16% to R35 and Anglo American Platinum (AMS) leapt 3.53% to R345.25.
Information technology player Datacentrix Holdings (DCT) ended 8.06% higher at R3.35 despite reporting a 15.2% fall in diluted headline earnings per share to 39.1c for the year ended February from 46.1c a year ago.
Illovo Sugar (ILV) gained 1.74% to R32.25 after it said it expected earnings per share for the year ended March to be up to 100% higher.
Gains on the JSE were however curbed after the International Monetary Fund (IMF) on Tuesday afternoon cut SA’s economic growth forecast for next year to 3.3% from 4.1%.
The fund’s latest World Economic Outlook (WEO) report showed that it still expected SA to grow by 2.8% this year from 2.5% last year.
Commodity prices made a modest recovery after their biggest selloff in three decades. Gold tumbled $140.40 an ounce‚ or 9.4%‚ on Monday‚ its biggest one-day dollar decline in 33 years.
At 17:00‚ the JSE All Share [JSE:J203] index closed up 1.12% at 38 429.66 points‚ with the blue-chip Top 40 - (Tradeable) [JSE:J200] index adding 1.18%.
The platinum and resource gauges recouped 3.38% and 1.63% respectively. The gold gauge‚ however‚ ended flat (-0.03%).
At 17:00 local time the spot price of gold was 2.83% firmer on the day at $1 388.64/oz and platinum was 2.96% firmer at $1 447.50/oz.
“We saw a bit of moderation creeping into the market this afternoon after the IMF cut it growth forecast for SA. We ended with fairly good gains on the day which is related to the dollar gold price‚” said Mohammed Nalla‚ head of strategic research at Nedbank Capital.
“We saw a lot of momentum today due to bargain hunting‚ with commodities and gold counters recouping some of their recent losses‚ but there is still very much a risk-off sentiment towards commodities globally. The US opened marginally higher as investors remained cautious on negative global data prints since Friday‚” he said.
Major European stock markets were broadly lower‚ with London’s FTSE 100 seen 0.56% softer at 16:46 local time. Weak economic data out of Germany offset the bounce in commodities prices in European markets.
Germany's ZEW economic sentiment indicator dropped to 36.3 in April from March’s 46.5‚ well below forecasts of 43.0‚ Dow Jones Newswires reported.
Meanwhile across the Atlantic‚ US stocks opened higher on Tuesday as strong housing data and upbeat earnings reports helping spark a rebound from the previous session's selloff.
At 16:46 local time the Dow Jones industrial average was 0.46% firmer.
Earnings season continued in upbeat fashion‚ with shares of Coca-Cola and Johnson & Johnson rising after the companies reported better than expected first-quarter earnings. Goldman Sachs also topped earnings forecasts.
On the JSE‚ mining conglomerate Anglo American (AGL) was 1.81% firmer at R223.07‚ BHP Billiton (BIL) tacked on 1.86% at to R258.38 and Sasol (SOL) ended 1.17% firmer at R375.
Kumba Iron Ore (KIO) jumped 3.42% to R451.94 and Exxaro (EXX) was up 1.27% at R147‚ while Alert Steel (AET) bucked the trend‚ giving back 4% to R1.20.
Industrial counter Bidvest (BVT) gained 2.27% to R225 and Barloworld (BAW) was up 2.86% at R93.98.
In the gold sector Harmony (HAR) advanced 2.72% to R46.85‚ Gold One International (GDO) added 3.54% to R2.05‚ while AngloGold Ashanti (ANG) ended 1.47% lower at R172.42.
Among platinums Lonmin (LON) surged 8.85% to R39.11‚ Northam Platinum (NHM) added 1.16% to R35 and Anglo American Platinum (AMS) leapt 3.53% to R345.25.
Information technology player Datacentrix Holdings (DCT) ended 8.06% higher at R3.35 despite reporting a 15.2% fall in diluted headline earnings per share to 39.1c for the year ended February from 46.1c a year ago.
Illovo Sugar (ILV) gained 1.74% to R32.25 after it said it expected earnings per share for the year ended March to be up to 100% higher.
