The JSE opened to another record high this morning as mining and resources stocks gained buoyed by rising commodity prices, strong business confidence and expectations of an economic growth path in the State of the Nation Address (Sona).
The JSE All Share Index rose to 77 206 index points at 9am for the first time ever, driven by the gold price, which rose above $1 830 today.
The gains in the yellow metal saw Alphamin Resources rising 8.31 percent to R17.33 per share, Kumba Iron Ore gaining 4.89 percent to R636.36 per share, while African Rainbow Minerals inched higher by 2.33 percent to R235.89 per share.
The rand also strengthened against the US dollar as risk sentiment returned to the markets after business confidence rose by 2.1 points to 94.1 index points, better than forecasts, and driven by stronger export and import activity, along with robust retail sales.
The rand also strengthened to a two-week high by 0.57 percent to R15.14 to the greenback during early trade, its strongest since 21 January.
“The rand has had a strong run over the last couple of days, and we can expect some consolidation at current levels ahead of the (US inflation) data this afternoon,” said Andre Cilliers, a currency strategist at TreasuryONE.
In the US, economists expect inflation in January to have risen further to 7.3 percent, and any print above that would be negative for emerging market currencies.
Investors are anticipating that President Cyril Ramaphosa will announce plans for a quicker economic recovery plan when he delivers his address later tonight.
These plans include addressing the energy crisis, the high jobless rate, State security, and announcing some form of social support package.
Industrial activity was given a breather this week after power utility Eskom suspended its latest power cuts.
The economy has been hit by energy shortages as power utility Eskom struggles to address long-standing operational and financial challenges, with the emergency programme to add generation from private producers experiencing multiple delays.
As a result, the country's economic outlook remains fragile amid the uncertainty around the evolution of the Covid-19 pandemic, policy uncertainty, higher inflation and interest rates.
BUSINESS REPORT ONLINE