The markets continued to smile on companies’ stocks yesterday as the JSE moved higher above the 70 000-point level following further evidence that global inflation could be peaking.
The JSE All Share Index followed its global counterparts and rose to its highest in 10 weeks, climbing 2.18 percent to 71 264 index points after slowing US inflation data curbed bets for aggressive Federal Reserve rates hikes.
The market movement followed a softer-than-expected July consumer price inflation reading of 8.5 percent from 40-year highs of 9.1 percent in June, prompting speculation that the Fed might ease the rate hikes.
Investors, however, continued weighing global economic risks and more corporate earnings.
The JSE gains were led by telecommunications group MTN, which rose 9.3 percent to R159 per share yesterday, followed by Telkom’s 6 percent gain to R47.36 per share.
MTN shares leapt on robust 46.5 percent growth in interim earnings for the 6 months ending 30 June as it grew its subscribers to 281 million globally, rising its revenue by 12 percent.
Absa Asset Management portfolio manager Cornette van Zyl said: “The All Share index at the moment is up by 1.1 percent and it’s quite broad-based. All of the sectors - resources, financials, industrials - are all in the green.
“On the international front, last night after the US CPI number we saw the S&P up strongly more than 3 percent, Nasdaq up 3 percent, Asia up strongly. European markets are sort of flattish, the rand strengthening and that’s probably on a dollar weakness because of the expectations that the Fed won’t be raising rates as aggressively.”
Meanwhile, the rand slightly slipped yesterday, easing 0.21 percent to R16.21 to the dollar.
Citadel Global director Bianca Botes said although the rand had performed better in the aftermath of the US CPI, volatility in the market had not eased.
“Risk sentiment remains on the up following the softer CPI reading, with markets positioning for lower and slower interest rate hikes by the Fed,” Botes said.
BUSINESS REPORT