Publications
Partners
Johannesburg - The All-share index on the JSE is flirting again with previous highs, as the upward momentum seemed to be re-established after Thursday’s losses due to profit-taking.
Although indices backed off somewhat from highs earlier in the day, the All-share index at midday was still 0.71% firmer at 47 719, while the Top 40-index improved by 0.77% to 42 993.
The resources index was particularly robust with the index 1.2% higher at midday at 55 805, while the industrial index improved by 0.77% to 54 525.
Resources shares were given a lift by talk from China that the country’s government wants to boost the economy after recent weaker than expected economic data.
Chinese Premier Li Keqiang said the government was ready to support the cooling economy and would push ahead with infrastructure investment.
A strong Chinese economy, particularly one that invests in infrastructure, is good for strong commodity sales and prices.
There was also relief in market circles that the South African Reserve Bank did not raise interest rates on Thursday, despite indications from governor Gill Marcus that the bank will use interest rates to keep inflation in check.
Rand Merchant Bank also said in a note on Friday morning that sentiment towards emerging markets is improving. It noted that foreigners had spent R5.5bn on local equities and bonds so far this week.
More interest in emerging markets is also one of the reasons why the rand is trading around an almost three-month high against the dollar.
The currencies of other emerging market also firmed amid renewed investor appetite for riskier assets.
By midday the rand was slightly weaker to the dollar at R10.61, but dealers said the currency still looks strong. The prospect of further interest rate hikes is also good news for the rand.
There was little direction from Wall Street, where shares ended lower after a contrasting set of economic data. First-time claims for unemployment benefits dropped over the past week, but pending home sales fell to the lowest level since October 2011.
Gold hit a six-week low on Thursday, breaking below $1 300 an ounce for the first time since mid-February. The metal is under pressure on speculation that US rates would rise sooner than expected, and easing tensions over Ukraine.
However, by midday the gold price recovered somewhat and gave shares a boost, with the index firming with more than 2%. At midday gold traded at $1 296.90.
Among the individual resources shares on the JSE, Anglo improved by 1.78% to R266.66 and Glencore Xstrata added 2.34% to trade at R55.56. Sasol lost 0.42% and slipped to R594.75.
Anglogold Ashanti gained 1.78% to R183.14‚ with Harmony adding 4.39% to R34.45.
The financial index did not move much after the highs of earlier in the week. Capitec gained the most favour among banking stocks‚ firming 1.92% to R198.75 after releasing market-pleasing results on Wednesday. Standard Bank improved with 0.45% to reach a new high of R136.50.
Naspers was 0.47% firmer at R1 141.35 after a losing streak in which the share lost 10% of its value this month.
The share was under pressure again on Thursday when Tencent traded 6.1% lower amid a major sell-off of tech stocks worldwide. The Nasdaq in New York, where most of the IT stocks are listed, closed lower again on Thursday night.
Although indices backed off somewhat from highs earlier in the day, the All-share index at midday was still 0.71% firmer at 47 719, while the Top 40-index improved by 0.77% to 42 993.
The resources index was particularly robust with the index 1.2% higher at midday at 55 805, while the industrial index improved by 0.77% to 54 525.
Resources shares were given a lift by talk from China that the country’s government wants to boost the economy after recent weaker than expected economic data.
Chinese Premier Li Keqiang said the government was ready to support the cooling economy and would push ahead with infrastructure investment.
A strong Chinese economy, particularly one that invests in infrastructure, is good for strong commodity sales and prices.
There was also relief in market circles that the South African Reserve Bank did not raise interest rates on Thursday, despite indications from governor Gill Marcus that the bank will use interest rates to keep inflation in check.
Rand Merchant Bank also said in a note on Friday morning that sentiment towards emerging markets is improving. It noted that foreigners had spent R5.5bn on local equities and bonds so far this week.
More interest in emerging markets is also one of the reasons why the rand is trading around an almost three-month high against the dollar.
The currencies of other emerging market also firmed amid renewed investor appetite for riskier assets.
By midday the rand was slightly weaker to the dollar at R10.61, but dealers said the currency still looks strong. The prospect of further interest rate hikes is also good news for the rand.
There was little direction from Wall Street, where shares ended lower after a contrasting set of economic data. First-time claims for unemployment benefits dropped over the past week, but pending home sales fell to the lowest level since October 2011.
Gold hit a six-week low on Thursday, breaking below $1 300 an ounce for the first time since mid-February. The metal is under pressure on speculation that US rates would rise sooner than expected, and easing tensions over Ukraine.
However, by midday the gold price recovered somewhat and gave shares a boost, with the index firming with more than 2%. At midday gold traded at $1 296.90.
Among the individual resources shares on the JSE, Anglo improved by 1.78% to R266.66 and Glencore Xstrata added 2.34% to trade at R55.56. Sasol lost 0.42% and slipped to R594.75.
Anglogold Ashanti gained 1.78% to R183.14‚ with Harmony adding 4.39% to R34.45.
The financial index did not move much after the highs of earlier in the week. Capitec gained the most favour among banking stocks‚ firming 1.92% to R198.75 after releasing market-pleasing results on Wednesday. Standard Bank improved with 0.45% to reach a new high of R136.50.
Naspers was 0.47% firmer at R1 141.35 after a losing streak in which the share lost 10% of its value this month.
The share was under pressure again on Thursday when Tencent traded 6.1% lower amid a major sell-off of tech stocks worldwide. The Nasdaq in New York, where most of the IT stocks are listed, closed lower again on Thursday night.
