South African stocks advanced in the longest
stretch of gains since September as the slowest inflation in
more than a year spurred speculation borrowing costs won’t rise.
The FTSE/JSE Africa All Share Index (JALSH) climbed 0.6 percent to 49,872.69 by the close in Johannesburg, the highest since Dec. 29, as almost three stocks gained for every one that fell. Measures of property stocks and retailers both jumped to all-time highs, according to data compiled by Bloomberg.
Inflation slowed to 5.3 percent in December, matching levels reached in November 2013, as falling global oil prices provided relief to South African consumers in an economy struggling to boost growth. Forward-rate agreements, used to speculate on interest rates, show for the first time since since May 2013 that investors see more chance of a cut than an increase over the next two quarters.
“We’ve got the benefit of the low oil price at the moment flowing through” which may mean interest rates will remain “low for quite some time,” Ferdi Heyneke, a money manager at Afrifocus Securities, said by phone from Cape Town. The black-owned investment and broking company that administers about 7,000 accounts declined to disclose how much it manages in assets. “Retailers continue to perform and they are obviously benefiting from this sentiment right now.”
The FTSE/JSE Africa General Retailers Index jumped 1.9 percent with eight of the gauge’s 10 members advancing. Truworths International Ltd. climbed a fifth day, rising 3.4 percent to 83 rand. Of the 23 companies on the FTSE/JSE South Africa Listed Property Index, 20 traded stronger, led by Delta Property Fund Ltd., which added 8.2 percent to 9.74 rand, a record high.
European Central Bank President Mario Draghi pledged to buy government bonds as part of an asset-purchase program worth about 1.1 trillion euros ($1.3 trillion). Economic stimulus in the U.S., which was wound up last year, bolstered demand for assets from developing nations including South Africa.
“There’s quite a lot of stimulating going on in markets where they’re trying to prop things up and get the economy and employment going,” Heyneke said. “The market is positive on the back of that.”
To contact the reporter on this story: Neo Khanyile in Johannesburg at nkhanyile@bloomberg.net
To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Emily Bowers
The FTSE/JSE Africa All Share Index (JALSH) climbed 0.6 percent to 49,872.69 by the close in Johannesburg, the highest since Dec. 29, as almost three stocks gained for every one that fell. Measures of property stocks and retailers both jumped to all-time highs, according to data compiled by Bloomberg.
Inflation slowed to 5.3 percent in December, matching levels reached in November 2013, as falling global oil prices provided relief to South African consumers in an economy struggling to boost growth. Forward-rate agreements, used to speculate on interest rates, show for the first time since since May 2013 that investors see more chance of a cut than an increase over the next two quarters.
“We’ve got the benefit of the low oil price at the moment flowing through” which may mean interest rates will remain “low for quite some time,” Ferdi Heyneke, a money manager at Afrifocus Securities, said by phone from Cape Town. The black-owned investment and broking company that administers about 7,000 accounts declined to disclose how much it manages in assets. “Retailers continue to perform and they are obviously benefiting from this sentiment right now.”
The FTSE/JSE Africa General Retailers Index jumped 1.9 percent with eight of the gauge’s 10 members advancing. Truworths International Ltd. climbed a fifth day, rising 3.4 percent to 83 rand. Of the 23 companies on the FTSE/JSE South Africa Listed Property Index, 20 traded stronger, led by Delta Property Fund Ltd., which added 8.2 percent to 9.74 rand, a record high.
European Central Bank President Mario Draghi pledged to buy government bonds as part of an asset-purchase program worth about 1.1 trillion euros ($1.3 trillion). Economic stimulus in the U.S., which was wound up last year, bolstered demand for assets from developing nations including South Africa.
“There’s quite a lot of stimulating going on in markets where they’re trying to prop things up and get the economy and employment going,” Heyneke said. “The market is positive on the back of that.”
To contact the reporter on this story: Neo Khanyile in Johannesburg at nkhanyile@bloomberg.net
To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Emily Bowers
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