Why the JSE Closed 0.74 percent in positive territory yesterday
The Johannesburg Stock Exchange (JSE) closed 0.74 percent in positive territory yesterday after trading in positive territory for most of the day. This was mostly as a result due to renewed global optimism that a deal would soon be reached to avail the Greek crisis. The total volume traded for the day was R 18.4 billion. Top winners of the day included Mediclinic Internat Ltd (JSE Code: MDC) up 3.2 percent, Standard Bank Group Ltd (JSE Code: SBK) up 3.1 percent, RMH Holdings Ltd (JSE code: RMH) up 2.9 percent, First Rand ltd (JSE code: FSR) up 2.4 percent, and Barclays Africa Grp Ltd (JSE code: BGA) up 2.4 percent.
There was a similar rally in global shares, with Greece’s new measures to appease its creditors fuelling optimism that a deal will soon be reached.
Looking at Asia, the MSCI Asia Pacific Index added 0.1 percent to 148.71 as of 9:00 a.m. in Tokyo after jumping the most in two months on Monday. Stocks in Europe and the U.S. gained on Monday after Greek Prime Minister Alexis Tsipras presented a fresh set of austerity proposals. European leaders gave Greece’s government 48 hours to make the final push needed to satisfy creditors and end the five-month standoff.
According to information coming out of yesterday’s emergency meeting on Greece, European leaders agreed that Tsipras’s government was finally getting serious about striking a deal with the new set of measures, which included steps to eliminate early retirement, raise the sales tax, increase surcharges to middle and high-income earners, and introduce levies on profitable companies. They agreed to step up the pace of negotiations to secure a breakthrough on Wednesday that leaders can sign off at the end of the week.
Besides evaluating Greece’s new proposals, European creditors also focused on the nation’s debt burden as a second step in the aid talks. Finance chiefs are divided whether the current bailout should be extended for a short period to cover the disbursement of aid, or for a longer time to allow more discussion of follow-up arrangements, including a possible third bailout, an EU official said.
Wall Street also traded higher on Greek deal hopes. The Dow traded in the green by +0.88%, while the S&P 500 traded +0.81% higher, and NASDAQ traded +0.66% in the green. Asian markets closed at a 2-week high on hopes that a new proposal will avert a Greek default. The Nikkei closed +1.26 % higher, while the Hang Seng closed higher by +1.20%. European indices traded higher on hopes that progress will be made in the Greek debt crisis. The DAX traded higher by +3.84% while the CAC 40 was higher by +3.83% and the FTSE 100 traded +1.58% higher. At local close Oil (Brent) traded lower by -1.35% at $62.17 while Gold traded lower by -1.53% at $1183.50. The dollar traded 0.42% weaker against the EURO at EUR/USD $1.1400. On the local front the All Share Index closed higher by +0.74%, while the rand traded 0.52% stronger against the dollar at R/USD 12.1004.