JSE benchmark hits new record high

South Africa’s benchmark stock index crossed the psychological level of 100,000 for the first time on optimism that a crucial budget vote will get support from key parties in the governing coalition. 

The index has advanced about 19% this year, hitting multiple record highs and outperforming a gauge of emerging stocks.

The gains have been paced by precious metal miners, including Sibanye Stillwater and Northam Platinum. 

South Africa’s president this week ousted his embattled higher education minister, easing tensions within the governing alliance and clearing the path for the national budget to be approved.

Lawmakers will vote on a law that allocates funds to government departments on Wednesday.

Wall Street banks, including JPMorgan and Goldman Sachs, earlier this month said the country’s financial and cyclical stocks are also set to outperform emerging-market peers as the Federal Reserve eases, creating room for its South African counterpart to cut interest rates.