Election results send JSE soaring
South African stocks jumped the most in almost seven months, carried higher by a surge in precious metals producers as the price of gold soared.
The FTSE/JSE All Share Index rose as much as 5.2%, the most since April 8, catching up with gains in global markets following the Democratic Party’s victory in the US midterm elections.
The Johannesburg bourse was shut on Wednesday for the Local Government Election public holiday.
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Surge in gold price
According to Bloomberg, the US election result sent the dollar and Treasury yields lower because of expectations the outcome may curb the Trump administration’s tax and spending plans. That triggered a surge in gold. Lower yields tend to support bullion as it doesn’t pay interest, while a weaker dollar makes the precious metal cheaper for buyers in other currencies.
An index of precious metals miners gained 8.8%, putting it on track for its biggest daily gain since June, with Anglogold Ashanti Plc and Gold Fields Ltd. leading the advance. Gold rose as much as 2.1% on Thursday to trade around $4 128 an ounce, after rising the most since August in the previous session.
brent crude oil price drop
While miners accounted for most of the session’s biggest gainers in Johannesburg, tech investor Naspers Ltd. provided the largest single contribution to the benchmark index. It climbed 13%, the most since December 2023, buoyed by improving sentiment toward Chinese stocks.
Naspers subsidiary Prosus NV holds a roughly 23% stake in Tencent Holdings Ltd., China’s social media and gaming leader. Tencent gained 7.2% in Hong Kong on Thursday. Prosus is up 4.2% in Amsterdam.
A drop of about 18% in Brent crude oil prices this week has further boosted the appeal of South African stocks.
The main South African index is up 6.7% on the week, easily outperforming its emerging-market peers. An index of developing nation stocks has dropped 1.3%.
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