The JSE followed its global peers higher on Friday, with the all share index ending up more than 2%, driven by gains in mining stocks which rebounded after recent losses.
It has been a rough week as market conditions remained choppy, driven by the tightening of monetary policies in the major economies.
US Federal Reserve chair Jerome Powell reaffirmed on Thursday that the central bank was likely to raise interest rates by half a percentage point at each of its next two meetings, in June and July.
Powell said the Fed was determined to get inflation under control, but its ability to do that without triggering a recession may depend on factors outside its control. While it is not “actively considering” a larger 75 basis-points increase, the Fed is ready to do more if needed, he said.
“A semblance of calm descended on the markets on Friday, and for that we can probably thank Jerome Powell, who stuck to the 50-basis-point hike, temporarily dispelling 75-basis-point hike nerves,” said SPI Asset Management managing partner Stephen Innes. “Taking into account that there are plenty of signs that the [US] economy is coming off the boil in response to the current policy stance, two half-point interest-rate hikes at the next two meetings are quite enough.”
“Powell’s comments may make other central bankers start to take a possible global growth slowdown seriously, and raise hopes in the market that they won’t increase interest rates as quickly as feared,” added Innes.
The JSE all share gained 2.08% to 68,650 points and the top 40 2.23%. The precious metals and mining index rose 7.04%, resources 4.21%, industrial metals and mining 1.73% and industrials 1.52%.
The all share was up 0.99% for the week.
Northam Platinum led the gains in the precious metals and mining sector, rising the most since October 2021, up 12.8% to R187.36. Impala Platinum leapt 10.36% to R198.57, Anglo American Platinum 9.53% to R1,648.24, Sibanye-Stillwater 5.85% to R46.52 and Gold Fields 4.44% to R184.89.
At 6.30pm, the Dow Jones industrial average was 1.43% firmer, while in Europe, London’s FTSE 100 rose 2.55%, France’s CAC 40 2.8% and Germany’s DAX 30 2.1%.
At 6.18pm, the rand had weakened 0.51% to R16.1478/$, 0.77% to R16.8190/€ and 0.86% to R19.7794/£. The euro was 0.32% firmer at $1.0413.
Gold lost 0.59% to $1,811.10/oz, while platinum was little changed at $945. Brent crude gained 3.7% to $111.09 a barrel.
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