The JSE touched another record high on Thursday morning, while the rand hovered around levels last seen in February 2023.
The all share index surged to an intraday record of 87,061 points, poised for its fifth consecutive session of gains. Meanwhile, the rand strengthened to an intraday best level of R17.1277/$, buoyed by interest rate cuts by both the US Federal Reserve and the SA Reserve Bank.
The recent announcement of a significant stimulus package by Chinese policymakers aimed at revitalising the world’s second-largest economy, which has restored growth levels last seen before the Covid-19 pandemic, provided further support.
The Chinese stimulus package, announced on Tuesday, is designed to address pressing economic issues, including weak credit demand by businesses and consumers, as well as unresolved problems after large devaluations in the country’s property sector.
“Traders continue to favour emerging markets and riskier segments of the market amid falling interest rates,” said Citadel Global director Bianca Botes. “Persistent optimism around the stimulus measures in China has also added to the upbeat sentiment.”
At 10.10am, the JSE all share had gained 1.24% to 87,029.21 points and the top 40 was up 1.32%. Industrial metals had risen 4.13%, resources 1.77%, industrials 1.72%, precious metals 1.37%, retailers 0.77%, SA listed property 0.3%, banks 0.29% and financials 0.25%.
Food producers had lost 0.32%.
At the same time in Europe, the FTSE 100 had gained 0.57%, France’s CAC 40 1.63% and Germany’s DAX 1.12%.
Earlier in Asia, the Shanghai Composite rose 3.61%, Hong Kong’s Heng Seng 4.12% and Japan’s Nikkei 2.79%.
At 10.21am, the rand had firmed 0.38% to R17.1732/$, 0.42% to R19.1146/€ and 0.25% to R22.9083/£. The euro was little changed at $1.1133.
On the data front, investors will be watching Thursday’s US jobless claims and final US quarter two GDP numbers, while the personal consumption expenditure (PCE) price index — the Fed’s preferred measure of inflation, will be released on Friday.
A number of Fed's officials are expected to speak today, with Fed's chair Jerome Powell scheduled for later today.
In the commodities markets, gold gained 0.5% to $2,670.15/oz and platinum 1.73% to $1,006.09/oz. Brent crude was 3.24% weaker at $71.32 a barrel.
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