JSE shares liftComment on this story
The JSE opened stronger on Wednesday supported by the industrial and banking sectors‚ after some profit taking on Tuesday took its toll following the JSE reaching an all-time high on Monday. Market participants are eagerly awaiting some policy clarification moves from central banks in the US on Wednesday and Europe on Thursday.
“We were sold down on Tuesday from an all-time high on Monday‚ with the market building in signs of international eurozone monetary support... something is afoot‚” said Kevin Algeo‚ portfolio manager at Imara SP Reid.
“We see some support from the industrial sector; and Exxaro‚ which came out with some decent results. Omnia‚ Imperial and Mr Price are also firmer today. Banks are stronger after good results from Nedbank last week‚” he added.
“It is difficult to call the market ... we saw Chinese PMI figures marginally worse than expected on Wednesday. All eyes are on quantitative easing intervention‚ in any shape or form‚” he added.
Rand Merchant Bank said the US Federal Reserve (Fed) seemed unlikely to announce any major policy change on Wednesday. More than 50% of the market that foresees quantitative easing (QE3) thinks it is most likely to come at the September meeting‚ when‚ unlike on Wednesday‚ Fed members update their economic forecasts and Ben Bernanke‚ chairman of the Federal Reserve‚ holds a press conference‚ said the bank. “We may receive a change in guidance on when rates will rise but this is a long shot. The most that we can hope for is a more dovish statement‚ which is not likely to appease the worried market. Risks are therefore biased towards losses post-event‚” it said.
“Being the first day of the month‚ we will receive PMI figures from around the world. We got off to a poor start as the Chinese figures disappointed‚ confounding expectations that the country’s economy is set to accelerate in the third quarter of this year. The big number is that from the US this afternoon‚” it added.
At 9:56 local time‚ the JSE all-share index was up 0.91% to 34‚911‚77 points‚ with industrial gaining 1.16% and banks advancing 1.10%. Gold miners fared the worst at the open‚ but still marginally up‚ by 0.16%.
Asian markets were mixed with the Nikkei 225 in Japan down 0.61%‚ while the Hong Kong Hang Seng Index was up 0.05% just before its close. - I-Net Bridge