JSE tracks global markets’ rebound

Johannesburg - The JSE was in positive territory on Friday morning‚ taking its cue from a firmer overnight close in New York and recovering Asian markets.

At 9:30‚ the All Share [JSE:J203] index was up 0.14% at 39 868.32 points‚ with the blue-chip Top 40 - (Tradeable) [JSE:J200] up by the same margin.

Banks were in the lead‚ adding 0.25% after recent declines‚ while miners remained under pressure due to volatile commodity prices and local mining woes.

The gold index was trading 0.80% softer after shedding more than 3% on Thursday.

Platinums gave back 0.33% after losing 1.64% on Thursday.

European markets were firmer‚ with the FTSE 100 index seen trading up 0.35%. In Asia‚ the Japanese Nikkei 225 closed 1.94% stronger.

Global market gains have been widespread and US equities broke a week-long losing streak to end up overnight‚ Rand Merchant Bank said in a note.

“Global assets are following the US’s lead. These market gains come on the back of better than expected US jobless claims and retail sales figures‚” the bank said.

“The direction of this response is intriguing. Last week the market was treating good data as bad for markets‚ because it implied the US Federal Reserve (Fed) (would taper off its stimulus programme). Suddenly we are back to the old normal of good being good‚” RMB said.

“The positive response of global markets to the positive US data is encouraging in that it suggests that the Fed tapering might finally have been priced in. Unquestionably‚ though‚ investors are still a little nervous‚ having being burnt so badly‚” the bank said.

There are no major South African data releases due today ahead of the long weekend. The US will release industrial production and consumer sentiment numbers‚ Absa Capital said in a note.

Among individual shares on the JSE‚ AngloGold Ashanti (ANG) gave back 1.32% to R158.87‚ after shedding more than 3% on Thursday and Sibanye (SGL) dipped 0.82% to R9.69.

Northam Platinum (NHM) retreated 1.76% to R35.71 and Anglo American Platinum (AMS) declined 1% to R304.23‚ after shedding more than 2% on Thursday.