<\/p>\n
The JSE All Share Index (Alsi) surged as much as 5% on Thursday morning, buoyed by higher gold prices and a drop in oil prices.<\/p>\n
At the same time, Sasol slid 11.26%, hitting R238.25 at 10:05am on Thursday morning.\u00a0<\/p>\n
Alsi\u00a0<\/p>\n
Precious metals miners rose, with the Resource Top Ten up more than 8%.\u00a0<\/p>\n
The biggest winners were AngloGold Ashanti, up more than 13%, Goldfields, up 10.76%, Harmony, up as much as 12%, and Northam, up 9.4%.<\/p>\n
On Wednesday, gold gained 3.3% to close at $4 060.02\/oz, as a weaker dollar boosted demand for the safe-haven metal following US midterm elections, in which Democrats won back control of the House and Senate.<\/p>\n
Read: Gold extends rebound above $4 100 as dollar and yields decline<\/p>\n
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A combination of factors has led to the JSE\u2019s surge: the US midterm election results, the expected decline in ANC performance in South Africa\u2019s local elections, and Chinese stimulus measures, says Peter Armitage, CEO and co-chief investment officer of Anchor Capital. The biggest reason for the rise in the JSE All Share Index is Trump\u2019s massive loss in the US, which has led to a lower oil price, he says.<\/p>\n
\u201cGlobal markets have also picked up quite strongly on that.\u201d<\/p>\n
With US President Donald Trump and his Republican Party weakened, Brent crude fell 8.7% on Wednesday to settle at $94.62 a barrel, as hopes of an early end to the US-Israeli war with Iran eased supply concerns.<\/p>\n
Read:
Brent crude plunges 10% after Trump midterm rebuke
Oil collapse is good news for inflation<\/p>\n
Brent crude\u00a0<\/p>\n
Following Trump\u2019s defeat and a vote against the Iran war, \u201cthe world has moved into a more risk-on phase\u201d, says Armitage. That leads to money moving into emerging markets like South Africa and into South Africa\u2019s banks, which Armitage called \u201ccheap\u201d.<\/p>\n
\u201cWhen foreigners play in our markets, banks are the first thing they buy.\u201d<\/p>\n
The financial index had risen 4.27% at 11:31 on Thursday morning.<\/p>\n
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Additionally, the Chinese have in recent days announced further stimulus measures and have been buying into stock market indices, he says.<\/p>\n
This led to an increase in the price of Naspers, which still has an outsized influence on the JSE. Naspers owns, through its investment arm Prosus, holds around a 22.66% stake in Chinese technology giant Tencent.<\/p>\n
Naspers\u2019s share price was up 10.70% to R779.57 at 11:30 on Thursday morning.<\/p>\n
Gold makes up about 20% of South African markets, explains Armitage, which is why the JSE is benefiting from the higher gold price.<\/p>\n
The market is also seeing expected local government election results quite favourably, with the ANC decline linked to the possibility of improved economic growth.<\/p>\n
Speaking of Trump\u2019s loss he said, \u201cIt\u2019s just like a big sigh of relief from markets.\u201d<\/p>\n
#JSE #jumps #Sasol #slides<\/p>\n","protected":false},"excerpt":{"rendered":"
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