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Johannesburg - The JSE opened stronger on Monday as expected as the market had some catching up to do with other international markets after the JSE was closed for a long weekend.
The mood on the market was also given a boost by a strong performance on Wall Street on Friday and stronger Asian markets this morning.
Analyst expect some more profit taking this week after the futures close out last week, but some of it did take place on Thursday afternoon and the market closed lower.
The All Share index was 0.51% higher by midday, while the Top 40 index traded 0.58% stronger on 42 127.
On Friday in New York, the Standard &Poor 500-index hit a new record‚ but closed 0.29% lower. The Dow Jones industrial index was 0.17% down. Analysts are now more optimistic that the American economy is recovering stronger than what was originally thought.
Asian markets were up despite China’s March HSBC “flash” PMI falling to 48.1‚ the lowest since July 2013 and below the consensus expectation. New downside risks to growth forecasts for China are now foreseen. It is now expected that the US will this year contribute more to the world’s economic growth than China.
Concerns about China is normally bad news for South African resources stocks, but this sector is according to Imara SP Reid now so oversold, that investors seem to forget about China’s economic woes.
The recourses index, which was at around 58 000 a few weeks ago, rose this morning with a healthy 0.87% to 54 797 with some bargain hunting taking place.
Anglo American [JSE:AGL] led the charge at resources‚ trading 2.40% higher at R257.78 with BHP Billiton [JSE:BIL] gaining 0.55% to R322.94. Sasol [JSE:SOL] was unchanged at R440, after rising initially more than 1%.
Kumba [JSE:KIO], which earns more than 60% of its income from China was 0.90% higher at R355.56. Last Monday the share lost more than 8% of its value on news that China’s exports dropped sharply last month.
The market was also boosted by a resurgent Naspers [JSE:NPN]‚ up 5.52% to R1 219.48 on indications that concerns about Chinese subsidiary Tencent’s failed entry into new e-commerce ventures were overblown.
Naspers carries a lot of weight in the industrial sector which traded 0.51% stronger as 53 708 points. Imara SP Reid said if there are enough upward momentum the index can test an important resistance level around 55 000.
Steinhoff [JSE:SHF] traded 1.53% stronger at R51.40 after announcing last week that it intended to increase its stake in the troubled JD Group [JSE:JDG] from 56.8% to about 98%, by offering to buy shares in the JD Group for R27.70 in exchange for Steinhoff shares.
The JD share price jumped last week from R20 to R28 on the news last week, but lost momentum later on. This morning it strengthened 1.05% to R26.98 just below the offer price.
The mood on the market was also given a boost by a strong performance on Wall Street on Friday and stronger Asian markets this morning.
Analyst expect some more profit taking this week after the futures close out last week, but some of it did take place on Thursday afternoon and the market closed lower.
The All Share index was 0.51% higher by midday, while the Top 40 index traded 0.58% stronger on 42 127.
On Friday in New York, the Standard &Poor 500-index hit a new record‚ but closed 0.29% lower. The Dow Jones industrial index was 0.17% down. Analysts are now more optimistic that the American economy is recovering stronger than what was originally thought.
Asian markets were up despite China’s March HSBC “flash” PMI falling to 48.1‚ the lowest since July 2013 and below the consensus expectation. New downside risks to growth forecasts for China are now foreseen. It is now expected that the US will this year contribute more to the world’s economic growth than China.
Concerns about China is normally bad news for South African resources stocks, but this sector is according to Imara SP Reid now so oversold, that investors seem to forget about China’s economic woes.
The recourses index, which was at around 58 000 a few weeks ago, rose this morning with a healthy 0.87% to 54 797 with some bargain hunting taking place.
Anglo American [JSE:AGL] led the charge at resources‚ trading 2.40% higher at R257.78 with BHP Billiton [JSE:BIL] gaining 0.55% to R322.94. Sasol [JSE:SOL] was unchanged at R440, after rising initially more than 1%.
Kumba [JSE:KIO], which earns more than 60% of its income from China was 0.90% higher at R355.56. Last Monday the share lost more than 8% of its value on news that China’s exports dropped sharply last month.
The market was also boosted by a resurgent Naspers [JSE:NPN]‚ up 5.52% to R1 219.48 on indications that concerns about Chinese subsidiary Tencent’s failed entry into new e-commerce ventures were overblown.
Naspers carries a lot of weight in the industrial sector which traded 0.51% stronger as 53 708 points. Imara SP Reid said if there are enough upward momentum the index can test an important resistance level around 55 000.
Steinhoff [JSE:SHF] traded 1.53% stronger at R51.40 after announcing last week that it intended to increase its stake in the troubled JD Group [JSE:JDG] from 56.8% to about 98%, by offering to buy shares in the JD Group for R27.70 in exchange for Steinhoff shares.
The JD share price jumped last week from R20 to R28 on the news last week, but lost momentum later on. This morning it strengthened 1.05% to R26.98 just below the offer price.
