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Johannesburg - Once more, the big stocks with the big market capitalisations pushed the JSE to new record highs on Tuesday morning.
By midday the two major indices on the JSE, the All-share index and the Top 40 index, were both higher than Monday’s records after major shares like SABMiller and Naspers again rose sharply.
The All-share index was 0.31% higher at 50 292, while the Top 40 index improved by 0.33% to 45 3284.
Tuesday morning's star performer was the Industrial index which gained 0.73% to 58 737, due to the improvement of some of its heavyweights.
The Resource index dropped 0.27% to 55 943 despite the fact that the rand’s recovery came to an abrupt halt on Tuesday afternoon, and the currency traded at R10.71 to the dollar after reaching R10.55 the previous day.
The currency market is nervous ahead of Friday’s announcement when two of the major credit rating agencies, Standard and Poor's and Fitch, will announce their reviews of South Africa.
A review to a level below an investment rating because of the country’s poorer economic prospects will be devastating for the capital inflows that support the local bond and stock markets.
It will be interesting to see if investors from developed countries who are seeking higher yields in the developing world would still be interested in South African stocks like SABMiller and Naspers, which had good runs on Tuesday morning.
Any move in Naspers’ share price is usually good news for the Industrial index because of its weight, and Tuesday morning was no exception. Naspers gained 2.61% to R1 226.20. This move was due to a 2.6% improvement in the share price of Chinese internet giant Tencent, in which Naspers holds a strategic stake of 34%.
The Tencent share price boost was part of a rally in Hong Kong shares which finished at their highest levels in five months, after China detailed which banks would benefit from a cut of required reserves ratios to boost the economy.
Despite a recent correction Naspers is still 67.4% higher than a year ago, but over the last six months the gain was only 17.2%.
SABMiller reached yet another 52-week high on Tuesday morning, lifting by 1.58% to R592.01. The share is now 13.9% higher than a year ago, but 12.1% better than six months ago.
These two shares were the busiest on Tuesday morning in terms of value. They were followed by Sasol which improved by 0.34% to R608.90 - just below previous records - on the back of a solid trading report for the first nine months.
Sasol is on the verge of introducing an operating plan that will lead to cost savings of R3bn a year.
Sappi is also at yet another record high after gaining 2.4% to R39.21.
On Tuesday morning there was no news yet on the platinum producers’ alternative plans for the Rustenburg platinum mines, after another round of mediated talks to end the strike at those mines again came to nothing on Monday.
Impala Platinum was however one of the busiest shares in the morning in terms of volume and value, with 2.13 million shares changing hands. The share price lost 1.09% to R109.79. Impala stocks gave up 5.8% of their value over the last six months while the strike was on, but are still 7.2% higher than a year ago.
Anglo American Platinum lost 1.79% at R464.00, but the share price is still 49.3% higher than a year ago.
Truworths and Woolworths were also among Tuesday's busiest shares. Truworths was 0.64% higher at R77.04, and is now only 3.74% lower than a year ago.
Woolworths gained 0.71% to R75.62 and is now 11.7% higher than 12 months ago, but the gain over the last six months was only 1.7%.
- Fin24
By midday the two major indices on the JSE, the All-share index and the Top 40 index, were both higher than Monday’s records after major shares like SABMiller and Naspers again rose sharply.
The All-share index was 0.31% higher at 50 292, while the Top 40 index improved by 0.33% to 45 3284.
Tuesday morning's star performer was the Industrial index which gained 0.73% to 58 737, due to the improvement of some of its heavyweights.
The Resource index dropped 0.27% to 55 943 despite the fact that the rand’s recovery came to an abrupt halt on Tuesday afternoon, and the currency traded at R10.71 to the dollar after reaching R10.55 the previous day.
The currency market is nervous ahead of Friday’s announcement when two of the major credit rating agencies, Standard and Poor's and Fitch, will announce their reviews of South Africa.
A review to a level below an investment rating because of the country’s poorer economic prospects will be devastating for the capital inflows that support the local bond and stock markets.
It will be interesting to see if investors from developed countries who are seeking higher yields in the developing world would still be interested in South African stocks like SABMiller and Naspers, which had good runs on Tuesday morning.
Any move in Naspers’ share price is usually good news for the Industrial index because of its weight, and Tuesday morning was no exception. Naspers gained 2.61% to R1 226.20. This move was due to a 2.6% improvement in the share price of Chinese internet giant Tencent, in which Naspers holds a strategic stake of 34%.
The Tencent share price boost was part of a rally in Hong Kong shares which finished at their highest levels in five months, after China detailed which banks would benefit from a cut of required reserves ratios to boost the economy.
Despite a recent correction Naspers is still 67.4% higher than a year ago, but over the last six months the gain was only 17.2%.
SABMiller reached yet another 52-week high on Tuesday morning, lifting by 1.58% to R592.01. The share is now 13.9% higher than a year ago, but 12.1% better than six months ago.
These two shares were the busiest on Tuesday morning in terms of value. They were followed by Sasol which improved by 0.34% to R608.90 - just below previous records - on the back of a solid trading report for the first nine months.
Sasol is on the verge of introducing an operating plan that will lead to cost savings of R3bn a year.
Sappi is also at yet another record high after gaining 2.4% to R39.21.
On Tuesday morning there was no news yet on the platinum producers’ alternative plans for the Rustenburg platinum mines, after another round of mediated talks to end the strike at those mines again came to nothing on Monday.
Impala Platinum was however one of the busiest shares in the morning in terms of volume and value, with 2.13 million shares changing hands. The share price lost 1.09% to R109.79. Impala stocks gave up 5.8% of their value over the last six months while the strike was on, but are still 7.2% higher than a year ago.
Anglo American Platinum lost 1.79% at R464.00, but the share price is still 49.3% higher than a year ago.
Truworths and Woolworths were also among Tuesday's busiest shares. Truworths was 0.64% higher at R77.04, and is now only 3.74% lower than a year ago.
Woolworths gained 0.71% to R75.62 and is now 11.7% higher than 12 months ago, but the gain over the last six months was only 1.7%.
- Fin24
