Local bourse seems unstoppable despite geo-political concerns

THE All Share index on the JSE once again recorded a record level high on Friday. The index closed on 102 274 points on Friday. This represents a weekly increase of 774 points, or 0.8%.

- CHRIS HARMSE

The index is now up by 2.4% over the last month and 9.3% over the last quarter. Since the beginning of the year All Share index has gained 22.0%.

The main reasons are the more positive global sentiment that better trade agreements between the US and most of the developed world countries are envisaged, a possibility that there will be an end of the Russia and Ukraine conflict, a stronger and stable Rand exchange rate, lower oil prices, lower interest rates and the ongoing surges in precious metal prices.

The Gold prices had advanced by $42 per ounce last week ($3 377), which amounts to a 22.9% surge since the beginning of the year. The Platinum price increased $34 per ounce in the last five days and improved by 25.0% over the last three months. Palladium shot up by $30 last week, moving higher by 9.0% over the last quarter.

The speech on Friday by Federal Reserve chairperson, Jeremy Powell, at the annual US Economic Policy Symposium in Jackson Hole, where he has indicated that there is now a greater possibility for US interest rates to be cut at Fed’s next meeting in September, boosted equity prices throughout the world.