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Johannesburg - Wall Street appears to be on an unstoppable roll and markets from around the world are following the trend, including the JSE, which has set new records.
The All-share index is rapidly on its way to 52 000 points, an unbelievable feat after being below 51 000 at the beginning of the week.
Naspers [JSE:NPN] is once again pulling the indices upwards.
At noon on Wednesday the All-share index was 0.55% higher than Tuesday’s record of 51 761, and the Top 40 index gained 0.68% to 46 778 points.
The JSE’s performance comes off another record close on Wall Street on Tuesday night, after positive motor sales in June. Wall Street was followed by markets in Asia and Europe on Wednesday morning. Asian markets are at a three-year peak.
Imara SP website said in its daily market snapshot that improved US economic data could lead to a decisive boost in the country’s economic activity, which seems to be the main driver of upward momentum on the markets.
Growth will be above average
A realistic appraisal of the US economy's growth prospects suggests a level marginally above average rather than particularly brisk, yet equities are currently pricing in blue sky territory as the momentum drives equity prices higher.
The possible outcome of this is questionable.
The local market has also been pushed higher by momentum rather than fundamentals, with overseas buyers seeking higher yields. They are currently buying up big South African shares, which are also listed abroad.
Wednesday morning focused on big resources and industrial stocks and the Industrial index was 0.78% higher, while resources strengthened by 0.65%.
All eyes on Naspers
Naspers was again the centre of attention. Shares to the value of R1.3bn traded on Wednesday morning in almost 4 000 transactions, significantly more than any other share.
BHP Billiton [JSE:BIL] was second with transactions to the value of R260m, followed by MTN [JSE:MTN] (R160m), Sasol (R150m), Anglo American [JSE:AGL] (R140.9m) and SABMiller [JSE:SAB] (R140m).
Naspers is once again above R1 300 per share after the price improved by 3.96% to R1 136.06.
Despite the big correction, Naspers is now 14.2% higher than six months ago and 71.5% higher than a year ago.
Its holding of 34% in the Chinese internet giant Tencent paid dividends, as the buoyant markets in Asia responded well to news this week that Tencent will buy a 20% stake in online classifieds company 58.com for $736m as the company looks to boost its presence in the e-commerce business.
BHP Billiton performed strongly with an improvement of 1.39% to R360.29 and Sasol [JSE:SOL] was 0.10% better at R636.66. Anglo American was 0.11% lower at R271.96, but traded at a high of R273.73 earlier on Wednesday morning.
In the industrial sector, MTN was 1.11% higher at R227.00 and SABMiller gained 0.33% to R624.99.
- Fin24
The All-share index is rapidly on its way to 52 000 points, an unbelievable feat after being below 51 000 at the beginning of the week.
Naspers [JSE:NPN] is once again pulling the indices upwards.
At noon on Wednesday the All-share index was 0.55% higher than Tuesday’s record of 51 761, and the Top 40 index gained 0.68% to 46 778 points.
The JSE’s performance comes off another record close on Wall Street on Tuesday night, after positive motor sales in June. Wall Street was followed by markets in Asia and Europe on Wednesday morning. Asian markets are at a three-year peak.
Imara SP website said in its daily market snapshot that improved US economic data could lead to a decisive boost in the country’s economic activity, which seems to be the main driver of upward momentum on the markets.
Growth will be above average
A realistic appraisal of the US economy's growth prospects suggests a level marginally above average rather than particularly brisk, yet equities are currently pricing in blue sky territory as the momentum drives equity prices higher.
The possible outcome of this is questionable.
The local market has also been pushed higher by momentum rather than fundamentals, with overseas buyers seeking higher yields. They are currently buying up big South African shares, which are also listed abroad.
Wednesday morning focused on big resources and industrial stocks and the Industrial index was 0.78% higher, while resources strengthened by 0.65%.
All eyes on Naspers
Naspers was again the centre of attention. Shares to the value of R1.3bn traded on Wednesday morning in almost 4 000 transactions, significantly more than any other share.
BHP Billiton [JSE:BIL] was second with transactions to the value of R260m, followed by MTN [JSE:MTN] (R160m), Sasol (R150m), Anglo American [JSE:AGL] (R140.9m) and SABMiller [JSE:SAB] (R140m).
Naspers is once again above R1 300 per share after the price improved by 3.96% to R1 136.06.
Despite the big correction, Naspers is now 14.2% higher than six months ago and 71.5% higher than a year ago.
Its holding of 34% in the Chinese internet giant Tencent paid dividends, as the buoyant markets in Asia responded well to news this week that Tencent will buy a 20% stake in online classifieds company 58.com for $736m as the company looks to boost its presence in the e-commerce business.
BHP Billiton performed strongly with an improvement of 1.39% to R360.29 and Sasol [JSE:SOL] was 0.10% better at R636.66. Anglo American was 0.11% lower at R271.96, but traded at a high of R273.73 earlier on Wednesday morning.
In the industrial sector, MTN was 1.11% higher at R227.00 and SABMiller gained 0.33% to R624.99.
- Fin24
* Fin24 is part of Media24, a subsidiary of Naspers. Naspers has a 34% stake in Tencent.
