Share

JSE rally continues

Johannesburg - South African stocks continued their recovery from the week's poor start on Thursday morning, as markets worldwide rebounded on hopes of a new eurozone economic stimulus programme which also gave the plummeting oil price a breather.

By midday on Thursday all the major indices on the JSE were modestly higher, with the exception of the Resources index with shares like Sasol [JSE:SOL] and Assore [JSE:ASR] again trading at new 52-week lows. If however one looks at the intraday graph of some of the indices there was quite a bit of volatility, as they were constantly moving up and down.

By midday the All-share index was 0.35% stronger at 49 133 points, while the Top 40 index improved by 0.35% to 43 239.

The local markets started the day on a more positive note on the back of a stronger Wall Street, which resulted in the European and Asian markets also rallying. US stocks rebounded on Wednesday from five straight sessions of losses after strong private sector jobs data, and as minutes from the most recent Federal Reserve meeting reassured investors the bank is in no hurry to start raising interest rates.

The S&P 500 rose 1.2%, its biggest daily percentage gain since December 18, retracing some of its 4.2% loss over the previous five sessions tied to concerns about plunging oil prices and global economic weakness.

The bright US data also boosted sentiment in Europe, while poor inflation data increased the prospects of more stimulus packages by the European Central Bank. The improved sentiment also helped the oil price and Brent again traded above $50 per barrel.

On the JSE Naspers [JSE:NPN] increased by another 1.35% to R1 672.33 and the stock is now on its way to R1 700 per share, after breaching R1 600 on Wednesday for the first time. The price increase of more than 10% since the beginning of the year is driven by increased optimism about the prospects for Tencent, the Chinese internet giant in which Naspers holds an interest of 34%.

Naspers is now 51.6% higher for the last year and trading at a price to earnings ratio of 97.29. During a correction in the share price in the first half of the year, it dropped as low R992.00 on May 1 2014.

The Financial index was 0.34% stronger, with Nedbank [JSE:NED] reaching a new high. By midday Nedbank was only 0.51% higher at R247.42, but it reached a new intraday high of R252.81 in morning trade.

In the retail sector Shoprite [JSE:] rose to a new 52-week high of R176.84, beating the previous high of R176.11. The share lost steam, trading only 1.49% higher at R175.57 by midday.

The resources sector was the only one in negative territory by midday, with Sasol [JSE:SOL] another 2.99% down at R391.37. Sasol has now lost 35.3% of its value over the last three months and 24.7% over the last month, due to the weak oil price. Sasol's income from fuel is directly linked to the oil price, which has dropped by more than 55%.

Assore is still struggling with the low iron ore price and dropped another 0.85% to yet another low of R137.92. The share price is now 63.1% lower than six months ago. In March last year stocks traded at a 52-week high of R451.50.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
907.85
+1.2%
Palladium
1,012.25
+1.1%
Gold
2,219.28
+1.1%
Silver
24.85
+0.8%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders