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Johannesburg - The reversal of last week’s correction on the JSE, which started on Friday, gained momentum on Monday and by midday the major indices were all more than 0.5% higher.
The technical research team of Imara SP Reid said in its daily Market Snapshot on Monday that last week’s correction did not damage the current upward momentum on the JSE, which indicates further improvement is possible.
In particular, some of the big value shares which lost ground last week after previously trading at record levels recovered on Monday morning, as bargain hunters saw more opportunities.
By midday on Monday the All-share index was 0.67% higher at 51 562 points, while the Top 40 index was even stronger and gained 0.75% to 46 415 points. The Industrial index improved by 0.87% and the Resource index was also 0.87% stronger, despite warnings from Anglo American Platinum [JSE:AMS] and Kumba Iron Ore [JSE:KIO] that their results would be much lower than the previous reporting period.
The JSE received a boost from Wall Street which also recovered on Friday, and stronger markets in Asia on Monday morning.
Analysts said the emphasis on Wall Street this week will be on company results for the second quarter, which are expected to be much higher than a year ago.
In the industrial sector some of the heavyweights which have lost ground lately were much stronger on Monday morning, particularly SABMiller [JSE:SAB], which lost more than 5% after reaching a new 52-week high a month ago. On Monday morning the share traded 1.94% stronger at R601.53.
Naspers [JSE:NPN] was 1.41% stronger at R1 311.45 and Richemont [JSE:CFR] gained 1.21% to R109.50. The biggest share on the JSE, British American Tobacco [JSE:BTI], was 1.43% firmer at R657.05.
There was a great deal of interest in the retail sector, with Woolworths [JSE:WHL] still trading at a 52-week high after news that shareholders of iconic Australian retailer David Jones on Monday overwhelmingly approved Woolworths’ $2bn takeover bid. The share price rose another 1.02% to R80.91 and has now gained 16.9% over the last 90 days.
Massmart Holdings [JSE:MSM], which improved strongly on Friday after a positive trading statement, gained another 1.67% to R147.42 on Monday.
Amplats lost 1.52% to R469.00 on Monday morning, after the announcement that it expected significantly lower earnings for the first half of the year after a five-month strike crippled its operations.
The company expects headline earnings per share for the six months to end-June to decrease to between 20 cents and 80c, from 514c reported for the six months ended June 30 2013.
Kumba said on Friday it expects earnings to be 19% lower, but that news has already been discounted as the share traded 1.13% higher at R344.84 on Monday.
Anglo American [JSE:AGL], the parent company of both Amplats and Kumba, traded 1.91% higher at R275.67. It is expected to release a trading statement this week, in which the company will hopefully give an indication of its platinum interest plans.
Although Anglo American is still 38.5% higher than 12 months ago, the share price has only moved 0.2% over the last three months.
- Fin24
The technical research team of Imara SP Reid said in its daily Market Snapshot on Monday that last week’s correction did not damage the current upward momentum on the JSE, which indicates further improvement is possible.
In particular, some of the big value shares which lost ground last week after previously trading at record levels recovered on Monday morning, as bargain hunters saw more opportunities.
By midday on Monday the All-share index was 0.67% higher at 51 562 points, while the Top 40 index was even stronger and gained 0.75% to 46 415 points. The Industrial index improved by 0.87% and the Resource index was also 0.87% stronger, despite warnings from Anglo American Platinum [JSE:AMS] and Kumba Iron Ore [JSE:KIO] that their results would be much lower than the previous reporting period.
The JSE received a boost from Wall Street which also recovered on Friday, and stronger markets in Asia on Monday morning.
Analysts said the emphasis on Wall Street this week will be on company results for the second quarter, which are expected to be much higher than a year ago.
In the industrial sector some of the heavyweights which have lost ground lately were much stronger on Monday morning, particularly SABMiller [JSE:SAB], which lost more than 5% after reaching a new 52-week high a month ago. On Monday morning the share traded 1.94% stronger at R601.53.
Naspers [JSE:NPN] was 1.41% stronger at R1 311.45 and Richemont [JSE:CFR] gained 1.21% to R109.50. The biggest share on the JSE, British American Tobacco [JSE:BTI], was 1.43% firmer at R657.05.
There was a great deal of interest in the retail sector, with Woolworths [JSE:WHL] still trading at a 52-week high after news that shareholders of iconic Australian retailer David Jones on Monday overwhelmingly approved Woolworths’ $2bn takeover bid. The share price rose another 1.02% to R80.91 and has now gained 16.9% over the last 90 days.
Massmart Holdings [JSE:MSM], which improved strongly on Friday after a positive trading statement, gained another 1.67% to R147.42 on Monday.
Amplats lost 1.52% to R469.00 on Monday morning, after the announcement that it expected significantly lower earnings for the first half of the year after a five-month strike crippled its operations.
The company expects headline earnings per share for the six months to end-June to decrease to between 20 cents and 80c, from 514c reported for the six months ended June 30 2013.
Kumba said on Friday it expects earnings to be 19% lower, but that news has already been discounted as the share traded 1.13% higher at R344.84 on Monday.
Anglo American [JSE:AGL], the parent company of both Amplats and Kumba, traded 1.91% higher at R275.67. It is expected to release a trading statement this week, in which the company will hopefully give an indication of its platinum interest plans.
Although Anglo American is still 38.5% higher than 12 months ago, the share price has only moved 0.2% over the last three months.
- Fin24
