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Johannesburg - Share prices on the JSE edged higher again on Tuesday after starting the day with some profit taking.
Particularly the Resources index, which started off on a weaker foot due to profit-taking after the previous session's good run, but by midday it turned course and was up 0.20% on 55 991 points.
The All-share index, which traded in a fairly narrow band on the intraday graph was 0.05% higher on 49 844 points, while the Top 40-index improved with 0.06% to 44 879 points.
The Resources sector received a boost from news that manufacturing activity in the world’s two biggest economies, the United States and China, are both improving. This is good news for South African commodity producers who sell important raw material to those factories.
Statistics on Monday showed that the Chinese government's official purchasing managers index (PMI) of manufacturing activity reached 50.8 in May, its highest level in five months. In the US the Institute of Supply Management said its purchasing manager’s index of US manufacturing activity rose in May to 55.4 from 54.9 in April.
PMI data is a closely watched indicator of the health of a country's economy, and a reading above 50 indicates growth.
But growth is slowing down in the eurozone, where Markit Economics said its composite PMI for May for the region fell to a six-month low of 52.2, from 53.4 in April.
The disappointing data increase the odds the European Central Bank (ECB) will take additional stimulus measures on Thursday, said analysts.
The resources sector was further supported by a weaker rand, which traded near R10.71/$ by midday. The rand, which traded between R10.25 and R10.40 to the dollar last week, was pulled down by a flood of bad economic news, particularly the poor growth figures and the trade deficit, which spell nothing good for the rising current account deficit.
The resources index was pushed higher Tuesday morning, not so much by mining shares, but rather by producers of basic commodities such as Sasol and Sappi, which were both trading on new 52-week highs.
Oil producer Sasol [JSE:SOL] strengthened with another 1.42% to R611.62 and is now 37.4% higher than a year ago. Paper group Sappi [JSE:SAP] is now 58.8% higher than a year ago after it gained another 2.15% tot another record of R38.00.
Amongst the mining groups Anglo American [JSE:AGL] lost 0.36% tot R264.24. Kumba [JSE:KIO], which strengthened on Monday with more than 4% after losing 11% last week, fell back again Tuesday morning and traded 2.74% lower on R326.80 by midday.
Platinum shares were modestly higher as there is still a glimmer of hope that a government brokered settlement for the crippling strike in the platinum sector is on the cards, despite efforts by Amcu to stall the process.
Anglo American Platinum [JSE:AMS] traded 0.73% higher on R460.88, while Lonmin [JSE:LON] gained 1.65% tot R46.85.
Some of the high flyers on the JSE of late, including Telkom [JSE:TKG] and Netcare [JSE:NTC], again reached new records Tuesday morning.
Investors in Telkom who banked on a turn-around at the telecommunications group, have seen the value of their shares increase by 166% the last year as the share gained another 1.93% to R39.65. Telkom announced last week its earnings are to increase nine fold.
Netcare, which set one record after the another after strong results, traded 0.49% higher on R28.55 and has gained 28.3% the past year.
The troubles at African Bank [JSE:ABL] continue and the share, which is now on a 52 week low, lost another 3.82% tot R7.80. The share has lost 49.3% of its value over the past twelve months.
- Fin24
Particularly the Resources index, which started off on a weaker foot due to profit-taking after the previous session's good run, but by midday it turned course and was up 0.20% on 55 991 points.
The All-share index, which traded in a fairly narrow band on the intraday graph was 0.05% higher on 49 844 points, while the Top 40-index improved with 0.06% to 44 879 points.
The Resources sector received a boost from news that manufacturing activity in the world’s two biggest economies, the United States and China, are both improving. This is good news for South African commodity producers who sell important raw material to those factories.
Statistics on Monday showed that the Chinese government's official purchasing managers index (PMI) of manufacturing activity reached 50.8 in May, its highest level in five months. In the US the Institute of Supply Management said its purchasing manager’s index of US manufacturing activity rose in May to 55.4 from 54.9 in April.
PMI data is a closely watched indicator of the health of a country's economy, and a reading above 50 indicates growth.
But growth is slowing down in the eurozone, where Markit Economics said its composite PMI for May for the region fell to a six-month low of 52.2, from 53.4 in April.
The disappointing data increase the odds the European Central Bank (ECB) will take additional stimulus measures on Thursday, said analysts.
The resources sector was further supported by a weaker rand, which traded near R10.71/$ by midday. The rand, which traded between R10.25 and R10.40 to the dollar last week, was pulled down by a flood of bad economic news, particularly the poor growth figures and the trade deficit, which spell nothing good for the rising current account deficit.
The resources index was pushed higher Tuesday morning, not so much by mining shares, but rather by producers of basic commodities such as Sasol and Sappi, which were both trading on new 52-week highs.
Oil producer Sasol [JSE:SOL] strengthened with another 1.42% to R611.62 and is now 37.4% higher than a year ago. Paper group Sappi [JSE:SAP] is now 58.8% higher than a year ago after it gained another 2.15% tot another record of R38.00.
Amongst the mining groups Anglo American [JSE:AGL] lost 0.36% tot R264.24. Kumba [JSE:KIO], which strengthened on Monday with more than 4% after losing 11% last week, fell back again Tuesday morning and traded 2.74% lower on R326.80 by midday.
Platinum shares were modestly higher as there is still a glimmer of hope that a government brokered settlement for the crippling strike in the platinum sector is on the cards, despite efforts by Amcu to stall the process.
Anglo American Platinum [JSE:AMS] traded 0.73% higher on R460.88, while Lonmin [JSE:LON] gained 1.65% tot R46.85.
Some of the high flyers on the JSE of late, including Telkom [JSE:TKG] and Netcare [JSE:NTC], again reached new records Tuesday morning.
Investors in Telkom who banked on a turn-around at the telecommunications group, have seen the value of their shares increase by 166% the last year as the share gained another 1.93% to R39.65. Telkom announced last week its earnings are to increase nine fold.
Netcare, which set one record after the another after strong results, traded 0.49% higher on R28.55 and has gained 28.3% the past year.
The troubles at African Bank [JSE:ABL] continue and the share, which is now on a 52 week low, lost another 3.82% tot R7.80. The share has lost 49.3% of its value over the past twelve months.
- Fin24
