The JSE tracked global peers higher on Thursday after Nvidia’s strong corporate results boosted sentiment.
Nvidia, which has become the fifth-largest company in the US by market capitalisation, said total revenue rose 265% from a year ago, driven by its booming artificial intelligence (AI) business. The company forecast another strong revenue gain for the current quarter against elevated expectations for huge growth.
AI enthusiasm has powered the jaw-dropping rally in Nvidia, along with other big tech names, over the past year. The chipmaker’s blowout quarter could further boost confidence in the space that has benefited the broader market, Bloomberg reported.
The JSE all share rose 1.48% to 74,112 points, pushed higher by all major indices, except food producers, which lost 1.44%. The top 40 was up 1.62%.
At 5.25pm, the Dow Jones industrial average was 0.68% firmer at 38,873 points, with markets also firmer in Europe.
Meanwhile, minutes from the most recent Federal open market committee meeting released on Wednesday showed that US central bank officials remained cautious about lowering interest rates too quickly, and emphasised the importance of carefully assessing incoming data in judging whether inflation was moving down sustainably to 2%.
Shares in retailer Pick n Pay led the losses on the local bourse, with the company’s share price dropping the most in at least 25 years after revealing its dire financial problems, which have forced it to embark on a rights issue to raise up to R4bn to stabilise the company.
In a statement on Thursday, the company said it would also unbundle its Boxer discount chain to help recapitalise the business, but would retain a majority stake in its star performer. The company’s share price fell 16.02% to R21.71.
The rand fell the most in more than two weeks, reaching an intraday worst of R19.1625/$, the weakest level in more than a week. At 5.32pm, the rand had weakened 1.26% to R19.1429/$, 1.16% to R20.6901/€ and 1.31% to R24.1717/£. The euro was little changed at $1.0816.
“We have seen the dollar steadily clawing back strength since the lows this morning and against a broad basket of currencies. Reasons for the move aren’t entirely clear,” IG senior market analyst Shaun Murison said. “We did however have hawkish minutes released from the Fed’s last meeting.
“Rand weakness while perhaps slightly exaggerated is not isolated as a number of emerging market currencies are also softer on the day as well. Key export prices while mixed mostly traded off highs of the day as well,” Murison said.
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