JSE recovers as focus shifts to Fed decision

The JSE entered its first day of gains this week while investors await an interest rate decision from the US Federal Reserve later in the day.

The local bourse and most global markets were stronger on Wednesday after being battered this week due to the concern about the coronavirus in China.

“Investors are foreseeing an end to the coronavirus outbreak just around the corner by buying shares and other risky assets while shunning haven assets that have outperformed in the past few days,” said London Capital Group head of research Jasper Lawler.

“Focus will turn on the dollar today as the Federal Reserve decides interest rates. No action is expected on interest rates but Fed chair Jerome Powell’s take on the American consumer, manufacturing and the effect of the coronavirus will be worth listening to.”

Earlier, Hong Kong’s Hang Seng dropped 2.82% while Japan’s Nikkei was up 0.71% and the Shanghai Composite was closed. In Europe, the FTSE 100 was up 0.32%, France’s CAC 40 0.39% and Germany’s DAX 0.12%. 

At 11.09am, the JSE all share added 1.28% to 56,460.9 points and the top 40 was up 1.4%. Industrials were up 1.86% and platinum miners 3.4%. 

Financial services company Quilter said on Wednesday that assets under management grew by 13% to £110.4bn (R2-trillion) at the end of 2019. Its share price was up 0.11% to R27.91.

Tiger Brands said on Wednesday that its CEO, Lawrence MacDougall, will retire at the end of January. The company’s CFO, Noel Doyle, will take on the role of CEO from February. The company’s share price up 1.23% to R212.58.

mjoo@businesslive.co.za