When herd behaviour is used for selfishness, all you’re left with is a smug sense of entitlement, writes Charlene Naidoo.
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The rise was linear for all the major indices particularly for US equity benchmarks which whipsawed between gains and losses.
United States markets did rebound following the announcement of an open-ended quantitative easing which will see the US Fed pump more stimulus into the economy.
Now that coronavirus has reached South African shores, the JSE has shed over 2% in mid-morning trade, with the rand similarly taking a beating as global markets are in risk-off mode.
The value of equities traded increased by only 2%. Together with the reduction in trading fees caused the JSE to generate 13% less revenue from equity trading activities.
The outlook was mixed in most global markets starting off in Asia where the Hang Seng and Shanghai Composite Index gained 0.31% and 0.7% respectively, while the Nikkei shed 0.59%.
The JSE opened mildly firmer and climbed further as the session progressed. The surge started off in Asia where the Shanghai Composite Index gained 0.81%, the Hang Seng added 0.87% while the Nikkei rose 0.74%.
Investors continued to assess the impact of the coronavirus particularly to global growth with most sectors taking a rather cautious approach. There are still broader concerns over the spread of the virus and how prepared health authorities are to contain it.
Goldman Sachs Group will open a Johannesburg branch of the international bank, and has been admitted as a member of the Johannesburg Stock Exchange's interest rate and currency derivatives market, it said in a statement Monday.
United States non-farm payrolls for the month of December came in lower than expected as the US economy added 145 000 jobs instead of the forecast 160 000 jobs.
The rand recovered from its earlier slump which saw it fall to a session low of R14.45/$. The local unit rallied to peak at a session high of R14.19/$ before it was recorded trading 0.44% firmer at R14.23 against the dollar.
With United States Congress inching closer to passing a stimulus bill which could aid the US economy, investors looked to take a bite at riskier assets.
While trading has been halted on other bourses, the JSE has been uninterrupted.
The JSE tumbled on Thursday as it resumed its downward trend following a minor relief bounce caused by the Budget 2020 speech.
The JSE plummeted along with global stocks as heightened fears over the spread of the coronavirus outside of China escalated.
The US Fed has indicated that it is closely assessing the potential impact to growth that could stem from the epidemic, while in China measures such as reserve requirement cuts have been taken to bump up liquidity in the markets.
The sea-saw action in financial markets continues despite the ongoing risks associated with the coronavirus. The gains in today’s session seem to have been triggered by another record high trading session in the USA on Monday.
The JSE reversed losses towards the close to end the day firmer following a session where it traded mostly softer.
The JSE on Monday tried to take a leaf from the earlier trend in Asian equities where the Hang Seng surged 1.11% while the Shanghai Composite Index gained 0.98%.
Miners have surged over the past couple of sessions on the back of firmer metal commodity prices, which have risen on the back of the tensions between the USA and Iraq.
The JSE's all share index gained 8% in 2019 - but this number belies the diverging fortunes of different sectors.
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