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THE JSE started the new year on a strong note strong and notched up a new all- time record in the first week, with major shares increasing sharply on the back of positive economic news from the US.
Markets across the world rallied as it is becoming more evident that the American economy is recovering and fears of the imminent easing of financial stimilus in the US are receding.
In SA, commodity shares picked up on expectations that stronger global economic growth will increase demand for metals and minerals - bringing higher volumes and higher commodity prices.
These larger volumes and higher prices translate into sharply higher profits, especially at an exchange rate that is much weaker than a year or two ago.
The usual bunch of shares pushed indices higher, such as Anglo American (JSE: AGL), BHPBilliton (JSE: BIL), AngloPlat (JSE: AMS), SABMiller (JSE: SAB) and Sasol (JSE: SOL).
The week ahead
The new trading year will start in all earnest this week, as market participants worldwide start to return to their offices and trillions of dollars worth of investment money starts to flow back and forth with a push of a few keyboard buttons.
The is little local news due this week. From next week retailers will start reporting on sales activity during the crucial holiday period, in which most of the big chains lost at least a day's worth of trading due to the death of former president Nelson Mandela.
Expectations are that sales were probably quite weak due to economic pressures, brought about partly by continued increases in the fuel price as well as the fact that a large part of our population reached their credit limit long ago.
Kumba Iron Ore (JSE:KIO) will set the tone for commodity shares as it issued the first trading statement for the year, indicating that earnings for the 12 months to December will increase 20%.
Investors will also continue to watch the Adcock Ingram saga (JSE:AIP), in which it looks as if Bidvest (JSE:BVT) is gaining the upper hand with its cash offer for Adcock shares versus CFR Pharmaceuticals' offer of cash and shares (which are not listed on the JSE).
Maybe Brian Joffe must throw in a few highly-regarded Bidvest shares to tip the scales.
- Fin24
*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at Nelson Mandela Metropolitan University.
Markets across the world rallied as it is becoming more evident that the American economy is recovering and fears of the imminent easing of financial stimilus in the US are receding.
In SA, commodity shares picked up on expectations that stronger global economic growth will increase demand for metals and minerals - bringing higher volumes and higher commodity prices.
These larger volumes and higher prices translate into sharply higher profits, especially at an exchange rate that is much weaker than a year or two ago.
The usual bunch of shares pushed indices higher, such as Anglo American (JSE: AGL), BHPBilliton (JSE: BIL), AngloPlat (JSE: AMS), SABMiller (JSE: SAB) and Sasol (JSE: SOL).
The week ahead
The new trading year will start in all earnest this week, as market participants worldwide start to return to their offices and trillions of dollars worth of investment money starts to flow back and forth with a push of a few keyboard buttons.
The is little local news due this week. From next week retailers will start reporting on sales activity during the crucial holiday period, in which most of the big chains lost at least a day's worth of trading due to the death of former president Nelson Mandela.
Expectations are that sales were probably quite weak due to economic pressures, brought about partly by continued increases in the fuel price as well as the fact that a large part of our population reached their credit limit long ago.
Kumba Iron Ore (JSE:KIO) will set the tone for commodity shares as it issued the first trading statement for the year, indicating that earnings for the 12 months to December will increase 20%.
Investors will also continue to watch the Adcock Ingram saga (JSE:AIP), in which it looks as if Bidvest (JSE:BVT) is gaining the upper hand with its cash offer for Adcock shares versus CFR Pharmaceuticals' offer of cash and shares (which are not listed on the JSE).
Maybe Brian Joffe must throw in a few highly-regarded Bidvest shares to tip the scales.
- Fin24
*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at Nelson Mandela Metropolitan University.
