TRADING AHEAD OF FESTIVE SEASON
JSE higher on stimulus call in Europe
The JSE all share rebounded strongly on Thursday ahead of the festive season in volatile trade as the European Central Bank (ECB) announced further stimulus measures to boost growth in the eurozone. The rand lost nearly 3% against the dollar at one point as the market interpreted the ECB’s decision to extend the stimulus programme to December 2017 as a hawkish step as the monthly amount was cut to €60bn from €80bn. It later recovered to R13.6763/$ in early evening trade. Analysts described the reduced monthly asset buying as risky, similar to the US Federal Reserve’s decision in mid-2013 to cut back its quantitative-easing programme, which led to the "taper" tantrum and a sell-off of bonds. But the weaker rand boosted the all share, with the index jumping 2.16% to 50,543.40 at the close, the best percentage gain since September 22. The all share recorded broad-based gains, led by retailers, resources and banks, with gold shares softening. Listed property stocks were under pressure a...
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