South African stocks notch up biggest one-day gain in 3 weeks –
JOHANNESBURG – South Africa’s main stock index ended a bruising week with its biggest daily percentage gain since Jan. 21 as a rally in commodity prices buoyed mining shares, while the rand was slightly weaker.
The blue-chip JSE Top-40 index rallied 2.66 percent to 43,119, the biggest one-day gain in three weeks, while the broader All-share index gained 2.48 percent to 48,589.
Both indices are down more than 3 percent, however, in a week punctuated by fears of global economic slowdown after comments by the head of the U.S. Federal Reserve were taken to mean further interest rate hikes are unlikely in the near term.
On the forex market, the rand gave up its earlier gains as better-than-expected U.S. retail data pushed the greenback up, backing the alternative possibility of the Fed continuing to raise rates this year.
The dollar index, which tracks the dollar against six major world rivals, jumped to a session high of 96.133 on the news.
By 1531 GMT the rand had slipped 0.36 percent to 15.8565 per dollar.
The U.S. data came at a time when rand volatility was high, as the market tried to digest President Jacob Zuma’s cost-cutting measures to address investor worries over fiscal policy.
“Talk is cheap. At the end of the day it is all going to come down to action and that is what the market wants,” Ricardo Da Camara, market analyst at ETM Analytics, said. “The market just wants confirmation and hopefully it will get it on February 24 when the budget is tabled.”
Bonds strengthened, with the benchmark paper due in 2026 shedding 1 basis point to 9.215 percent.
On the bourse, mining shares were in demand as metal prices such as copper cruised higher, with Anglo American rising 14.8 percent to 82.47 rand and rival BHP Billiton climbing 7 percent to 156.02 rand.
“After the week we had, I am not surprised to see buyers returning to the market, because the sell-off has created some bargains,” one Johannesburg trader said.
Trade was thin, with more than 260 million shares changing hands, below last year’s daily average of more 296 million shares.