JSE gains on renewed trade-truce optimism
The market is continuing to digest the decision by Moody’s to change SA’s outlook from stable to negative
The JSE was in positive territory on Monday morning, tracking Asian markets as traders reacted to more positive developments in the US-China trade war.
China’s foreign ministry said on Monday that President Xi Jinping and US President Donald Trump had been in contact as the two countries are expected to sign a partial deal possibly later in November, Reuters reported.
“Of course, we’ve had plenty of warm words before that have delivered very little but things seem to finally be moving,” Oanda senior market analyst Craig Erlam.
Earlier, the Shanghai composite added 0.58% and Hong Kong’s Hang Seng 1.43% while Japan’s Nikkei 225 was closed for a public holiday.
Locally, the market continues to digest the decision by Moody’s Investors Service on Friday to change SA’s outlook from stable to negative, a move that was highly priced in by the market.
At 10.02am, the JSE all share was up 0.45% to 56,906.8 points and the top 40 0.47%. Banks were up 2.01% and financials 1.46%.
Shoprite climbed 5.68% to R145 after the retailer said on Monday that its group turnover increased 7.3% in the three months to end-September.
Redefine Properties was up 3.3% to R7.82. The company said on Monday that its headline earnings per share fell 42.6% to 39.53c in the year to end-August.
Rhodes Foods climbed 3.9% to R16. The company said on Monday that its group turnover increased 8.2% in the year to end-September.