Futures sharply higher as market affirms its approval of Ramaphosa
South African futures were markedly higher on Thursday as what verged on euphoric trade on the JSE all share boosted the market following the election of Cyril Ramaphosa as head of state.
A positive opening on the Dow, as well as higher European markets, supported local trade. The Dow was up 0.6% higher soon after the JSE’s close.
The all share closed 3.72% higher at 59,533.10 points, its highest gain since December 2014, while the top 40 added 3.97%. Banks rose 5.78%, the platinum index 4.35%, general retailers 4.17%, industrials 3.97%, financials 3.72% and resources 3.14%. Property shed 0.13%.
Fear that the long run of exceptionally low inflation was ending, prompting the US Federal Reserve to pick up the pace of interest-rate increases in 2018, triggered a global stock sell-off earlier this month.
Treasury yields have climbed to four-year highs, while the Dow Jones industrial average and S&P 500 slumped into correction territory last week. Stocks have been on the rebound since then, with investors pointing to the robust fundamental picture, Dow Jones Newswires reported.
"We still have a synchronised global growth and fourth-quarter earnings are coming in ahead of expectations," said Eoin Murray, head of investment at Herms Investment Management. "The Goldilocks environment looks [set] to continue for now."
The top-40 Alsi futures index added 4.09% to 52,575 points. The number of contracts traded was 41,068 from Wednesday’s 29,942.