Precious metals pushed the JSE higher on Thursday, with US and European counterparts picking up momentum as fresh US corporate earnings painted a positive picture.
The positive sentiment was driven by solid performances from major banks, shifting the focus to big tech earnings.
Chip stocks led the gains, reversing recent losses, with artificial intelligence (AI) darling Nvidia rising 3% to a new high. The stock was boosted by TSMC — the world’s largest contract chip maker — posting strong third-quarter results and upwardly revised revenue forecast, reported the Wall Street Journal.
TSMC’s better-than-expected profit was attributed to strong demand from smartphones and AI applications. The shares of TSMC jumped 13%.
China announced expanded financing for housing projects to revitalise its struggling property market. Beijing’s efforts aim to reverse the slump triggered by a crackdown on excessive developer borrowing, reported Bloomberg. While China’s leaders have pledged additional measures to stimulate the economy, investors remain underwhelmed, seeking more comprehensive reform to address long-term problems such as local debt and weak consumer demand.
The JSE gained 0.22% to 86,582 points, with precious metals and resources leading the gains, adding 4.9% and 3.5%, respectively. The top 40 was 0.34% firmer.
Harmony Gold led the gains among precious metal stocks, gaining 8.68% to R201.65, the most in more than a month. DRDGold added 6.96% to R20.44, Gold Fields 6.45% to R308.77, AngloGold Ashanti 5.24% to R521.69 and Pan African Resources 2.05% to R8.47.
Shares in DRDGold were among the best performers on the JSE, rising the most in about a month after the company reported improved performance across key metrics in the quarter ending September 30, driven by the higher gold price and improved cost efficiency.
At 6.20pm, the Dow Jones industrial average was 0.38% firmer at 43,239 points, with European markets also strengthened.
At 6.22pm, the rand had weakened 0.51% to R17.6927/$, 0.18% to R19.1533/€ and 0.61% to R23.0083/£. The euro was 0.34% weaker at $1.0826.
In the commodities markets, gold gained 0.55% to $2,688.5/oz, while platinum lost 0.38% to $992.21/oz. Brent crude was 0.26% weaker at $73.98 a barrel.
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