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Johannesburg - The All Share index on the JSE burst through the 48 000 level on Monday morning to establish a new intra-day high and traded at one stage even above 48 100. But by midday the index was again just under 48 000 as the excitement subsided.
The market was mainly driven by resources stocks which rose sharply on Friday and early on Monday on expectations of an economic stimulus in China.
Imara SP Reid warned however that the market is overexcited about the potential impact of the stimulus.
By midday the JSE was only 0.3% higher than Friday’s record level and traded at 47 942. The Top 40-index was only 0.04% higher on 56 032.
Chinese Premier Li Keqiang said last week the Chinese government was considering spending on infrastructure to boost the Chinese economy, after a series of very sluggish economic data.
The stronger rand, which reached a level of R10.55/$ at one stage on Monday morning on expectations that South African interest rates will rise further, also dampened the enthusiasm for resources stocks.
Firmer markets in New York and in Asia also supported South African share prices, while the sentiment towards emerging market continued to improve.
Rand Merchant Bank (RMB) said in a morning note that flows into the South Africa markets remain positive. The bank said that March will probably end with net inflows of R16bn into equities and bond.
There will also be important economic data this week that will direct the market, including a meeting by the European Central bank and the latest US payroll data.
At midday, most of the major resources stocks were slightly lower on Friday's close, after trading much higher earlier in the day. BHP Billiton [JSE:BIL] was 0.23% lower at R327.51 after trading at R330.80 earlier, while Glencore XStrate [JSE:GLN] was 0.81% down at R55.01 after reaching R56.20. The company announced it had reached a preliminary deal for a $1bn contract for access to railway and port facilities with Mauritania.
Anglo American [JSE:AGL] was marginally higher at R270.33 after reaching a high of R272.81.
The market was mainly driven by resources stocks which rose sharply on Friday and early on Monday on expectations of an economic stimulus in China.
Imara SP Reid warned however that the market is overexcited about the potential impact of the stimulus.
By midday the JSE was only 0.3% higher than Friday’s record level and traded at 47 942. The Top 40-index was only 0.04% higher on 56 032.
Chinese Premier Li Keqiang said last week the Chinese government was considering spending on infrastructure to boost the Chinese economy, after a series of very sluggish economic data.
The stronger rand, which reached a level of R10.55/$ at one stage on Monday morning on expectations that South African interest rates will rise further, also dampened the enthusiasm for resources stocks.
Firmer markets in New York and in Asia also supported South African share prices, while the sentiment towards emerging market continued to improve.
Rand Merchant Bank (RMB) said in a morning note that flows into the South Africa markets remain positive. The bank said that March will probably end with net inflows of R16bn into equities and bond.
There will also be important economic data this week that will direct the market, including a meeting by the European Central bank and the latest US payroll data.
At midday, most of the major resources stocks were slightly lower on Friday's close, after trading much higher earlier in the day. BHP Billiton [JSE:BIL] was 0.23% lower at R327.51 after trading at R330.80 earlier, while Glencore XStrate [JSE:GLN] was 0.81% down at R55.01 after reaching R56.20. The company announced it had reached a preliminary deal for a $1bn contract for access to railway and port facilities with Mauritania.
Anglo American [JSE:AGL] was marginally higher at R270.33 after reaching a high of R272.81.
