JSE rallies after Greek vote

Independent Newspapers

The JSE. Photo: Simphiwe Mbokazi.

The JSE lifted to near two-month highs on Monday‚ tracking the buoyant global investor sentiment‚ after Greece pro-bailout parties secured a majority in the elections.

At 09:28 local time‚ the JSE all-share index rallied 0.97% to 34‚290.83 points‚ the highest since April 26.

Resources gained 1.06%‚ gold counters garnered 0.60% and platinums firmed 1.98%.

Financials were up 0.94%‚ banking stocks rose 1.41% and industrials were 0.92% in the black.

The rand strengthened to 8.25 to the US dollar‚ from 8.37 at the JSE's close on Friday‚ while gold was quoted at US$1‚617.93 a troy ounce from US$1‚628.80/oz at the JSE's previous close and platinum was at $1‚492.50/oz‚ from $1‚491.20/oz previously.

“I wouldn’t rush into these markets. It is nothing more than short covering in my view. The reality will soon set in as people realise that these are short term solutions‚” said Francois du Plessis‚ director at Vega Asset Management.

The outcome of the Greek election sparked a rally in risk assets in Asia and Europe on Monday as investors were cheered by the victory of pro-bailout New Democracy party as the results pushed up both currencies and stocks‚ Dow Jones Newswires reported.

New Democracy leader Antonis Samaras has already vowed to respect the country's commitment to a EUR173 billion ($218.6 billion) bailout agreement with the European Union and the International Monetary Fund and invited all the parties that support Greece's membership of the euro to join a national “salvation” government.

Japan's Nikkei rallied 1.77% at the close‚ while the Hang Seng index was up 1.18% at 09:28 local time. At the same time‚ in Europe‚ London’s FTSE was up 1.22%. - I-Net Bridge