Chinese rate cut sparks rally on JSE

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THE JSE extended gains in early afternoon trade on Friday after China unexpectedly cut interest rates, sparking a huge relief rally in commodity shares.

The all share lifted 1.81% to 50,163.98 points, rebounding from three-week lows, as investors welcomed steps by China’s central bank to bolster the country’s slowing economic activity.

Resources and platinum indices surged 3.44% and 3.72%, respectively, whilebanks and industrials gained 1.5% and 1.48%, respectively.

The People’s Bank of China said it cut its benchmark one-year loan rate by 0.4 percentage point and its one-year deposit rate by 0.25 percentage point, Dow Jones Newswires reported.

Leading European share markets extended gains at midday, with the Paris CAC 40 index gaining 1.48%.

Anglo American jumped 3.85% to R229.76, with BHP Billiton rallying 3.2% to R280.47 and Sasol recovering 4.7% to R530.

Assore regained 6.33% to R187, with Kumba Iron Ore jumping 7.22% to R265.06.

Richemont was up 2.16% to R98.43 and Bidvest gained 2.39% to R317.81.

Gold Fields fell 3.83% to R46.40.

Anglo American Platinum was up 3.72% to R379.63 and Impala Platinum added 4.23% to R81.98.

FirstRand recovered strongly, rising 2.26% to R48.88.

Woolworths lifted 1.87% to R79.70 and Massmart rallied 2.58% to R132.15.

( BDLive)