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Port Elizabeth - Optimism is alive and well on brokers' trading screens and on speculators' laptop computers as can be seen by trading statistics for the last week.
The JSE reached another new record high, while share prices of only 68 of the around 500 listed companies on the JSE ended the week lower.
And these declines were mostly miniscule compared with largely big increases in the prices of the rest of the shares. A good example of this could be found amongst retail shares: Verimark [JSE:VMK] declined all of 3c to 68c compared with the increase of more than 7% in Truworths' [JSE:TRU] share price to 8350c.
The continued strength of retail shares is in itself an indication of the positive sentiment in the market. All economic figures show that consumer spending are under pressure. Retail shares usually decline when interest rates increase. In addition, high fuel prices are keeping consumer spending in check even more than interest rates do.
And only during the last week official figures proved that inflation is picking up and due to increase further. The consumer price index increased by 6% during March compared with an in increase of 5.9% in general prices during February.
More concerning is that producer inflation is accelerating fast. StatsSA announced last week that the producer price index - so-called prices at the factory gate - increased by 8.2% in March. It was around 5% only a few months ago.
These higher producer prices eventually work their way through the supply chain deep into consumers pockets. But, retail and other consumer-sensitive shares run higher.
The week ahead
More of the same? Mining shares ended last week mixed as producers of base minerals and metals declined somewhat on worries of growth in the Chinese economy, while platinum and gold shares picked up.
Maybe they trade places next week when investors realise the cheaper shares offer better relative value over the long term and load up a bit. Speculators could be tempted to take some profit from last week's winners.
The market will probably be quite quiet with two public holidays which will probably evolve SA style into a week of relaxation. SA markets will be closed on Monday to celebrate Freedom Day and most international markets will be closed on Thursday, 1 May.
Very little important company news or announcements are expected. Few listed companies are due to announce results now as only a couple have had February year ends (or August year ends due to publish interim results to end February).
Hopefully the following week, being the first week in the notoriously black month of May will bring a bit of excitement.
The JSE reached another new record high, while share prices of only 68 of the around 500 listed companies on the JSE ended the week lower.
And these declines were mostly miniscule compared with largely big increases in the prices of the rest of the shares. A good example of this could be found amongst retail shares: Verimark [JSE:VMK] declined all of 3c to 68c compared with the increase of more than 7% in Truworths' [JSE:TRU] share price to 8350c.
The continued strength of retail shares is in itself an indication of the positive sentiment in the market. All economic figures show that consumer spending are under pressure. Retail shares usually decline when interest rates increase. In addition, high fuel prices are keeping consumer spending in check even more than interest rates do.
And only during the last week official figures proved that inflation is picking up and due to increase further. The consumer price index increased by 6% during March compared with an in increase of 5.9% in general prices during February.
More concerning is that producer inflation is accelerating fast. StatsSA announced last week that the producer price index - so-called prices at the factory gate - increased by 8.2% in March. It was around 5% only a few months ago.
These higher producer prices eventually work their way through the supply chain deep into consumers pockets. But, retail and other consumer-sensitive shares run higher.
The week ahead
More of the same? Mining shares ended last week mixed as producers of base minerals and metals declined somewhat on worries of growth in the Chinese economy, while platinum and gold shares picked up.
Maybe they trade places next week when investors realise the cheaper shares offer better relative value over the long term and load up a bit. Speculators could be tempted to take some profit from last week's winners.
The market will probably be quite quiet with two public holidays which will probably evolve SA style into a week of relaxation. SA markets will be closed on Monday to celebrate Freedom Day and most international markets will be closed on Thursday, 1 May.
Very little important company news or announcements are expected. Few listed companies are due to announce results now as only a couple have had February year ends (or August year ends due to publish interim results to end February).
Hopefully the following week, being the first week in the notoriously black month of May will bring a bit of excitement.
