The JSE could enjoy another positive session on Thursday, a day after logging its biggest-day gain (1.77%) in six weeks, powered mainly by resource stocks.
Japan’s Nikkei was up 1.77% as it played catch-up after a five-day break, while Hong Kong’s Hang Seng gained 0.17%.
The SA share market, with other global markets broadly, have mostly been trading sideways in recent weeks, after a blockbuster first quarter in which most of them were either at record or multiyear highs.
“With global markets just off the recent highs and as we head into the northern hemisphere summer, one has to wonder if this is the year to ‘Sell in May and go away’,” said Nick Kunze, portfolio manager at Sanlam Private Wealth.
“Three weeks into the US earnings season and so far it’s been a blockbuster with big tech companies once again dominating. Earnings season is always a good time to stop and review the outlook for US firms and the global economy more broadly,” Kunze said.
He said while some volatility is to be expected, the overall tone of the earnings season will confirm the optimistic outlook painted by central banks and economic data.
Commodity prices were broadly higher, with the spot price of Brent crude gaining 0.82% to $69 per barrel, its highest level since mid-March. Brent crude is the key underlying driver of inflation.
The rand, which is the proxy of risk-on sentiment because of its highly tradable status, was off 0.20% to R14.3620/$.