JSE remains bullish but nervous, while the rand loses ground

DESPITE some uncertainty about world equity and bond markets around the US economy and the way forward for interest rates after the US government shutdown remains, share prices on the JSE remain bullish.

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The all share index broke through the 110 000 point level a few times last week and closed on Friday at 110 296 points. This is an improvement of 0.5% for the week and the sixth consecutive record Friday close.

The prices for gold, platinum and palladium remain strong but have moved sideways since last Thursday.

The gold price ended the week still above the $4 000 (about R69 900) level ($4 009) and $123 per ounce for the week, from $3 885 the previous Friday.

Platinum ended flat on $1 617, but the palladium price shot up by $183 to $1 443 per ounce.

Investor concerns over a prolonged US government shutdown drove demand for safe-haven assets. This has led to uncertainty on foreign exchange markets, especially currencies of emerging countries.

Investors are uncertain when crucial US economic data like the monthly unemployment rate will be released and with the important inflation rate for September to be announced this coming week.