The JSE opened firmer on Monday as the news that the Federal Bureau of Investigation (FBI) had found no evidence of criminal wrongdoing in Democratic nominee Hillary Clinton’s use of a private e-mail server supported Asian markets.
The news was released by the FBI on Sunday evening and is seen as a boost for Clinton‚ one day before voting takes place on Tuesday. A Clinton administration is generally regarded as more market friendly than one led by Donald Trump.
At 9.30am‚ the all share was up 0.74% to 50‚055.80 points and the blue-chip top 40 rose 0.83%. Banks were up 1.79%‚ food and drug retailers 1.58%‚ general retailers 1.18% and industrials 0.96%.
The gold index shed 2.81% and platinums 0.64%.
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The Dow Jones closed 0.24% lower on Friday with the US election too close to call at the time and with US jobs data on Friday pointing to a rate hike in December. The Nikkei was 1.61% higher and the Hang Seng added 0.84% on Monday morning.
“The FBI’s decision to not pursue Clinton with regards to her lapses in judgment on e-mail security‚ has encouraged the market tone at the commencement of the new week‚” Momentum SP Reid analysts said in an early morning note.
The lead-up to election day was likely to "witness a generally jittery tone for risk assets with slightly lower volumes"‚ Momentum said.
Gold was an immediate casualty with the price retreating 1.18% to $1‚288.43/oz after firming to above $1‚300 last week as a hedge for a possible Trump victory.
Among individual shares on the JSE‚ Glencore added 2.30% to R41. Anglo American rose 1.07% to R183.70.
After three consecutive losing sessions at the end of last week‚ Sasol added 0.83% to R366.02. Brent crude lifted 1.12% to $46.06 a barrel on Monday morning.
Richemont dropped 0.98% to R93.33. It rose more than 8% on Friday after the luxury goods company announced management changes.
Among gold shares‚ Harmony dropped 3.50% to R43.81.
FirstRand jumped 1.98% to R48.85 and Standard Bank added 1.95% to R144.77.
Clicks rebounded 2.01% to R122.26. Shoprite firmed 1.31% to R188.49.
Lewis group fell 1.92% to R37.25.
MTN added 0.72% to R113.57.
Taste Holdings plummeted 9.78% to R1.66.
Clover Industries jumped 4.77% to R17.80.
– TMG Digital/BusinessLIVE