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Johannesburg - At some stage on Wednesday morning it looked as if a rally in platinum shares would lead the JSE to new record levels, but this fizzled out.
The JSE was also initially boosted by a wordwide rally in share prices, based on indications that the tension in the Ukraine is decreasing, but this too could not continue to provide the momentum.
By midday the All-share index was 147.98 points lower at 47 455 and the Top 40-index had decreased by 169.14 points to 42 896.
On Tuesday morning the All-share index hit a record intraday high of 47 643.28, closing just short of a new record in the evening.
Platinum shares, as well as the rand, received an initial boost from hopes of a breakthrough in a prolonged platinum strike by the Association of Mineworkers and Construction Union.
The union, which has been on strike for more than five weeks, revised its wage demands. It said it was now seeking staggered increases that would take the basic entry level wage to R12 500 a month in three years' time, compared to its original demand for immediate hikes.
The excitement did not last long as the three mining companies involved in the strike rejected the union’s decreased demand as still unaffordable.
By midday the big platinum shares had given up most of their gains. Anglo American Platinum [JSE:AMS] was 1.12% higher on R449.97, but traded earlier on R450.38. Impala Platinum [JSE:IMP] was 0.18% higher on R114.92 after reaching an intraday high of R115.85.
After Tuesday’s strong run there was a bit of profit taking as well, as most of the major indices are approaching important resistance levels. Imara SP Reid said in its daily market snapshot that the JSE’s improvement was slightly more substantial than technical evidence would have supported.
The market was driven over the last few days by better than expected company results, which indicated that some of the big shares' high market valuations are still supported by solid earnings.
Strong company results have brought the average price to earnings ratio on the JSE down to 17.8 from 19 at the beginning of the year‚ higher than the historical average of 14.5 after 1994.
The market was also initially supported by the news that MTN [JSE:MTN] increased its headline earnings per share for 2013 with 27.3% to R13.86. The share price was 1.18% higher at midday at R202.69, after giving up most of its gains in the earlier morning trade. It reached an intraday high of R204.69.
Banking shares were initially lower on profit taking after Tuesday’s strong run, but recovered later. RMB Holdings [JSE:RMH] was 0.33% higher at R48, after reporting a 22% rise in diluted normalised earnings per share to 205.8c in the six months to December.
Subsidiary FirstRand [JSE:FSR]‚ which reported earnings growth of 20% on Tuesday‚ was 0.37% up at R35.40. Standard Bank [JSE:SBK]‚ which is due to report full-year results tomorrow‚ was 0.81% stronger at R124.00.
- Fin24
The JSE was also initially boosted by a wordwide rally in share prices, based on indications that the tension in the Ukraine is decreasing, but this too could not continue to provide the momentum.
By midday the All-share index was 147.98 points lower at 47 455 and the Top 40-index had decreased by 169.14 points to 42 896.
On Tuesday morning the All-share index hit a record intraday high of 47 643.28, closing just short of a new record in the evening.
Platinum shares, as well as the rand, received an initial boost from hopes of a breakthrough in a prolonged platinum strike by the Association of Mineworkers and Construction Union.
The union, which has been on strike for more than five weeks, revised its wage demands. It said it was now seeking staggered increases that would take the basic entry level wage to R12 500 a month in three years' time, compared to its original demand for immediate hikes.
The excitement did not last long as the three mining companies involved in the strike rejected the union’s decreased demand as still unaffordable.
By midday the big platinum shares had given up most of their gains. Anglo American Platinum [JSE:AMS] was 1.12% higher on R449.97, but traded earlier on R450.38. Impala Platinum [JSE:IMP] was 0.18% higher on R114.92 after reaching an intraday high of R115.85.
After Tuesday’s strong run there was a bit of profit taking as well, as most of the major indices are approaching important resistance levels. Imara SP Reid said in its daily market snapshot that the JSE’s improvement was slightly more substantial than technical evidence would have supported.
The market was driven over the last few days by better than expected company results, which indicated that some of the big shares' high market valuations are still supported by solid earnings.
Strong company results have brought the average price to earnings ratio on the JSE down to 17.8 from 19 at the beginning of the year‚ higher than the historical average of 14.5 after 1994.
The market was also initially supported by the news that MTN [JSE:MTN] increased its headline earnings per share for 2013 with 27.3% to R13.86. The share price was 1.18% higher at midday at R202.69, after giving up most of its gains in the earlier morning trade. It reached an intraday high of R204.69.
Banking shares were initially lower on profit taking after Tuesday’s strong run, but recovered later. RMB Holdings [JSE:RMH] was 0.33% higher at R48, after reporting a 22% rise in diluted normalised earnings per share to 205.8c in the six months to December.
Subsidiary FirstRand [JSE:FSR]‚ which reported earnings growth of 20% on Tuesday‚ was 0.37% up at R35.40. Standard Bank [JSE:SBK]‚ which is due to report full-year results tomorrow‚ was 0.81% stronger at R124.00.
- Fin24
