The JSE closed firmer on Monday as a bullish financial sector continues to drive the market.
The rand traded at R12.10 at the close of the market, having firmed significantly against a weaker dollar as the US government shutdown continues to hinder any strength in the currency. The rand has also gained strength from positive developments over the weekend surrounding Eskom as well as rumours that the ANC top six seek the exit of President Jacob Zuma.
The JSE All Share Index gained 0.27% while the blue-chip Top 40 gained 0.20%. The market was driven by a 0.98% rally in the Financial index, the Industrial index also managed to gain 0.22% as Naspers was lifted by a firmer Tencent price in Hong Kong.
Banks gained 2.48% reaching record highs supported by the firmer rand and market friendly political developments. The heightened optimism created by the appointment of a new Eskom board will boost investor confidence in South Africa and accelerate domestic growth.
Leading the banking stocks, FirstRand [JSE:FSR] gained 3.15% to R66.50, followed by Standard Bank [JSE:SBK] 2.78% to R198.54, Nedbank [JSE:NED] 2.50%, and Barclays Africa [JSE:BGA] climbing 2.23% to R182.40.
While the gold price regained some lost ground and traded firmer at $1334.75/Oz at the close of the market, local miners felt the squeeze of the firmer rand which resulting in the Gold mining index falling 2.23%.
The US government shutdown entered its third day, suppressing the Dow Jones which traded lower by 0.02% at the close of the local market. The dollar is pulling back slightly and US treasury yields are touching three-year highs. The U.S. Senate has scheduled a noon vote for today on a stopgap spending measure, ensuring the federal government will remain closed when the work week begins.
The euro is heading higher, gaining 0.21% against the dollar, following a crucial vote by Germany's Social Democrats to enter formal coalition talks with Chancellor Angela Merkel's conservatives, ending four months of political uncertainty.
Oil prices firmed 0.32% to $68.83/bbl as Saudi Energy Minister Khalid Al-Falih urged global oil producing nations on Sunday to extend their cooperation beyond 2018 at a compliance meeting between OPEC and non-OPEC members in Oman.
