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Johannesburg - The JSE reached yet another high on Wednesday morning, but this time it was not Naspers [JSE:NPN] which pushed the market higher.
Naspers continued to lose ground on Wednesday after a big sell-off on Tuesday, but a strong technical rebound in resources shares pushed the All-share index past the previous all-time high of 53 589 reached on Monday.
READ: Bigger picture on Naspers, Tencent moves
By Wednesday midday the All-share index was 0.57% higher on a new high of 53 615 (it even traded as high 53 647), while the Top 40-index was also back on a high of 47 399 after gaining 0.64% on Wednesday morning.
At that stage the Resources index was already 2.53% higher than the previous day, supported by the Gold index which traded 1.8% higher.
By midday the Industrial index was only 0.41% higher, but still well below the level of 68 000 reached earlier in the week, while the Financial index lost 0.16%.
Technical analysts described resources shares' gains, which had already started on Tuesday, mainly as a technical rebound; however, there were other supporting factors.
The dollar weakened somewhat after a disappointing US retail sales report aggravated concerns about the health of the world's top economy, while upbeat factory output data supported the embattled euro.
READ: European stocks rally ahead of ECB meeting
US retail sales rebounded from a three-month slump in March, but the 0.9% gain was slightly weaker than estimated. Excluding auto sales, retail sales rose only 0.4% instead of the anticipated 0.7%.
The dollar slipped on the news as weak economic data postponed the possibility of a hike in US interest rates, and a softer dollar is good for commodity prices.
The resources sector should have reacted negatively on more disappointing economic news from China, the world’s biggest buyer of commodities, but any negative news from China is currently regarded as an indication that Chinese authorities will announce more measures to stimulate the world’s second-biggest economy.
The Chinese economy expanded 7.0% in the first three months of 2015, slightly better than forecast in a survey by AFP but much slower than in October to December. It was also the worst single quarter since the first three months of 2009, during the depths of the global financial crisis.
By Wednesday midday Anglo American [JSE:AGL] was 3.15% higher at R189.80, after still being on a 52-week low of R177.00 on Monday. BHP Billiton [JSE:BIL] gained 2.78% to R265.36 and is now 1.73% higher for the week.
The higher oil price, which traded above $59 on Wednesday, supported the Sasol [JSE:SOL] share price further and by midday the stock was another 2.76% higher at R456.25. Sasol is now 12.18% higher over the past seven days. The oil price is supported by expectations that shale oil production in the US will drop because of the low price and further anticipated economic stimulus in China.
Although the platinum price was lower on Wednesday morning the share prices of the major platinum producers, Anglo American Platinum (Amplats) [JSE:AMS] and Impala Platinum (Implats) [JSE:IMP], both rose on Wednesday morning. Both shares were still on 52-week lows earlier this month.
Amplats increased by 3.5% to R288.50 and Implats was 2.26% higher at R61.48. Implats is now 3.39% higher over the past seven days.
The busiest share on the JSE was Old Mutual [JSE:OML] with more than 13 million shares changing hands in more than 3 000 transactions after the news that the company appointed Standard Bank executive Bruce Hemphill to lead the company, replacing Julian Roberts.
READ: Standard Bank's Hemphill takes helm at Old Mutual
Hemphill was previously chief executive of Liberty Group. Old Mutual described the appointment as part of an orderly succession plan.
Old Mutual was initially about 0.50% lower but by midday the share had edged upwards and was 4c or 0.1% higher at R41.74. The share price has gained more than 20% since the beginning of the year.
Naspers continued its downward path on Wednesday. The share opened higher at R1 916 compared to Tuesday’s close of R1 868, but by midday was 0.72% lower at R1 855.43 in brisk trade. At one stage the share price was more than 1% down.
