Why the JSE Closed 1.08 percent in Positive Territory Yesterday

By Vivian Atud

Johannesburg (Sunburst Africa) What: The JSE closed 1.08 percent in positive territory yesterday after trading in positive territory for most of the day. The total volume traded was 18.8 billion rands.

jse 03 feb 15

Why: With improved oil prices, the JSE was pulled up by mostly resources shares. Top winners of the day included: Amplats (JSE Code: AMS) up 6.4 percent, Sasol (JSE Code: SOL) up 5.4 percent, Kumba (JSE Code: KIO) up 5.2 percent, Implats (JSE Code: IMP) up 5.2 percent and Standbank (JSE Code: SBK) up 4.7 percent. Top losers of the day included Mediclinic (JSE Code: MDC) down 1.8 percent, life health care (JSE Code: LHC) down 1.7 percent, Aspen (JSE Code: APN) down 1.6 percent, Bidvest (JSE Code: BVT) down 1.6 percent and Naspers (JSE Code: NPN) down 1.2 percent.  Asian and European markets also closed in positive territory impacted by both the Quantitative easing program in the EU zone and the rising oil prices

So What: Investors should expect the upward momentum on the JSE to continue today as oil prices continue to improve. In early morning trade today Asian stocks are headed for the biggest gain in six weeks and emerging-market currencies strengthened after a three-day rally in commodities. The yen weakened and sovereign bonds fell.

The MSCI Asia Pacific Index gained 1.5 percent by 11:08 a.m. in Tokyo, as sub-indexes of materials and energy companies surged more than 2 percent. Standard & Poor’s 500 Index futures were little changed.

Global stocks have reversed 2015 losses this week, led by energy producers, amid speculation that crude prices may have found a bottom. Oil is paring gains before data Wednesday that may show stockpiles in the U.S., the world’s No. 1 consumer of the commodity, rose last week. A gauge of China’s services industry expanded at the weakest pace in six months before similar measures in Europe and the U.S.

Japan’s Topix index rose 2.2 percent, gaining for the first time in three days, and set for its biggest one-day advance since Dec. 19. Mitsubishi UFJ Financial Group Inc. shares surged the most since June 2013 after Japan’s largest bank reported an unexpected 36 percent gain in third-quarter profit. Toyota Motor Corp. added 2.6 percent before Japan’s largest company reports earnings.

Australia’s S&P/ASX 200 Index climbed for a 10th straight day, extending its longest rally since August 2013 and heading for its highest close since May 2008. BHP Billiton Ltd., the world’s biggest mining company and Australia’s top oil and gas producer, advanced 4.5 percent, the most since July 2009.

Energy stocks drove gains in the S&P 500 Tuesday, with the benchmark U.S. gauge rising 1.4 percent. Exxon Mobil Corp. and Chevron Corp. jumped at least 3 percent to pace a 1.8 percent advance in the Dow Jones Industrial Average.

 

Today should be another exciting day on the JSE as investors wake up to positive equity sentiments coming out of Asia and Europe.

For more information: contact info@atudandassociates.co.za

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