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South African stocks recover some of Monday's losses

by , 09 April 2014

The Johannesburg Stock Exchange made up some of its losses after Monday's dismal performance. On Monday, the local bourse fell over 1%. After a quiet morning on the JSE, the afternoon saw a modest rise. Let's take a closer look at what happened on the JSE yesterday…

Emerging markets are attracting overseas investors again

The JSE closed slightly higher yesterday, says Fin24. The rand’s strength reflects that “sentiment towards emerging markets are improving”.

The JSE Top 40 Index rose 0.49%, closing at 43,230.33 points. The All Share Index added 0.44%, closing at 48,069.53 points.

The main indexes of the JSE rose, except the Platinum Mining Index, notes BDLive. The banks led the way, “closing 1.75% higher”. The Gold Mining Index rose 0.5%. Resources were close behind, ending 0.47% up.

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Whilst the day turned out to be positive for the market, some analysts think stocks are at levels for “profit taking,” says Fin24. But with the rand putting in such a good performance yesterday, there is “hope that overseas investors are returning to emerging markets”.

The JSE rose as Europe’s main markets fell

The JSE’s performance was in spite of losses on Europe’s main exchanges. The FTSE100 fell 0.49% and France’s CAC40 shed 0.25%.

The release of the International Monetary Fund’s World Economic Outlook report seemed to spur South African stocks higher. Even though the report was generally negative about SA, that wasn’t the focus of the market.

The IMF expects “sustainable growth in the US economy,” reports BDLive. This helped keep this JSE upbeat.

After a bad performance lately, media giant Naspers managed to claw back 2.2%, taking its share price back to R1,064.34, says MoneyWeb. This follows a heavy tumble over the last few months, including nearly 6% yesterday.

Jan Botha, a portfolio manager at Sasfin Securities, confirmed that “foreign buyers returned to the JSE,” says BDLive. Mr Botha said their focus was “retailers and banks”. This helped Standard Bank and FirstRand closer at “new highs for the year”.

So a positive day after Monday’s poor performance. Let’s see what today brings as markets wait for the US Federal Reserve to release its latest committee meeting minutes.

South African stocks recover some of Monday's losses
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