JSE in push for fifth month of gains
Dovish US central bank policy has boosted the local bourse in 2019, as has better-than-expected recent global economic news
The JSE winning streak that saw it achieve a fifth consecutive month of gains in April global data could continue in May, with local equities boosted by better-than-expected global economic data. Signs of improving global growth are offsetting more subdued local business conditions and domestic political uncertainty, analysts say. The JSE climbed 3.66% in April, and the local bourse needs to rise only another 1.6% before fully recovering from 2018’s 11.37% loss. A dovish tilt by the US Federal Reserve in January set the stage for a rally by global equities in 2o19 , while fears over global growth slowing in 2019 have eased amid better-than-expected economic data. US GDP rose 3.2% in the first quarter of 2019, much better than expected, while a series of economic releases from China have also helped ease concerns about an economic slowdown in the world’s second-largest economy. The global environment remains supportive for local equities, said Old Mutual Multi-Managers strategi...
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