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Johannesburg - World markets approached record highs on Friday and the JSE followed, with the All-share index reaching a new intraday high.
Markets worldwide were supported by hopes of more easy money from central banks, while new lows for eurozone bond yields encouraged investors to look for higher yields in emerging markets like South Africa.
READ: European shares at highest level, euro slips
By midday on Friday the All-share index was on a new intraday high of 53 381 points, 0.75% higher than Thursday’s close. The previous high of 53 344 was set on February 26 and the All-share index at one stage was as high 53 390.
The Top 40-index was 0.69% higher at 47 105 after reaching 47 139 earlier in the day, just below the previous high of 47 236 set on March 5 this year.
The major indices were supported by strong performances by the Industrial index, which gained 0.89% to reach a new intraday high of 68 021 points, and the Financial index was 0.91% stronger.
Gold gained 1.79% when the gold price returned to above $1 200 per ounce, but the Resources index is still the victim of the stronger dollar which had one of its better weeks against the euro and sterling. The losses were however limited and at midday the index was only 0.24% down.
Wall Street started the worldwide run on Thursday night, when big gains in petroleum stocks lifted the market as investors bet on more large energy mergers following Royal Dutch Shell's takeover of BG Group.
The pan-European FTSEurofirst 300 share index powered to its highest level since 2000 on Friday as the euro hit its lowest level since mid-March. The European stock market push was also complemented by another low for eurozone bond yields, after Greece repaid a loan tranche to the International Monetary Fund to keep its hopes of more aid alive.
The low yields supported emerging markets and most of Friday morning's action took place in the Far East, where Tokyo's Nikkei index breached the 20 000 level for the first time since 2000, before losing steam.
The Hong Kong market, which gained more than 6% over the previous two days, continued its surge. The Hang Seng index rocketed since reopening on Wednesday after the long holiday weekend, with mainland traders making the most of a link-up between it and Shanghai's exchange.
Investors from the Chinese mainland sought out relatively cheap stocks in Hong Kong after a surge in Shanghai, where the market has doubled over the past year. Investors' interest has been fuelled by hopes for more economic stimulus for the Chinese economy, after lower-than-expected inflation figures.
Technical analysts from Imara SP Reid said the short-term indicators for the local market retain a positive bias. Near-term metrics such as momentum figures and short-term moving averages indicate further technical improvement is on the cards.
Naspers [JSE:NPN], which pulled the market substantially higher on Thursday, was again 1.32% up at a new high R1 944.86. At one stage on Thursday the share was almost 5% higher at more than R1 966 per share, before it lost ground and closed 2.29% stronger at a high of R1 919.59.
READ: Naspers jumps as SA stocks rally
Naspers is supported by strong runs in the price of Tencent, the internet giant in which it owns a 34.4% stake. Tencent, one of the star performers in the Hong Kong market surge, gained another 1.19% by Friday midday.
In the resources sector Kumba [JSE:KIO] is back at a new 52-day low, losing 3.91% to trade at R136.26. Although the share price recovered strongly earlier in the week, it is still almost 9% lower for the week.
Retail shares are still strong with Cashbuild [JSE:CSB], Mr Price [JSE:MPC], Clicks [JSE:CLS] and Spar [JSE:SPP] still at 52-week highs. Truworths [JSE:TRU] joined their ranks on Friday morning when it gained 2.73% to an intraday high of R94.51.
Standard Bank [JSE:SBK] is also at a new high of R173.31 after gaining 0.67% on Friday morning.
