The JSE added close to 2% higher on Wednesday while global peers have largely followed as investors hope the pace of US interest rate hikes might begin to slow.
US stocks opened mixed following weaker-than-expected earnings reports from tech giants Microsoft and Google-owner Alphabet. The local bourse added 1.90% having firmed during morning trade before the Medium Term Budget Policy Statement and continued to strengthen in the afternoon following finance minister Enoch Godongwana’s presentation to parliament.
Godongwana said government would take over a significant portion of Eskom’s R400 billion debt burden while the finance minister signalled the end of the e-toll debate by announcing National Treasury would finance 70% of road agency Sanral’s outstanding debt on the project. The remaining 30% will come out of the Gauteng provincial budget.
In the currency markets, the rand responded positively to the budget and is currently trading below the R18.00 level versus the greenback.
Earlier, TreasuryOne currency strategist Andre Cilliers said a positive market reaction would see the local unit strengthen further after it recovered late yesterday on the back of the big bounce in the pound.
