Publications
Partners
Johannesburg - A relief rally on global markets pushed the JSE's All-share index back above 56 000 points in early trade on Monday, as higher overseas markets supported the big industrial shares on the local bourse.
With heavyweights such as Naspers [JSE:NPN] and Richemont [JSE:CFR] trading solidly higher, the Industrial index on the JSE - which includes most of the big dual-listed shares - was already 0.78% higher at mid-morning on Monday.
The result was that the All-share index traded above 56 000 for the first time in a week. By mid-morning it was 0.41% higher at 55 952 points, while the Top 40 index gained 0.54% to 49 541 points. Financial shares were also modestly higher with the Financial index gaining 0.30%, but resources and gold shares were under pressure.
By mid-morning the Resources index was 0.30% softer, although one of the big three, Glencore [JSE:GLN], traded on a new 52-week high. Gold shares were 2.92% lower, with the gold price almost 1% down and the rand trading slightly stronger at R12.90 to the dollar.
Naspers, which drifted more than 2.5% down over the previous seven days, made up almost all those losses as the stock gained 2.23% to R2 927.98. It was also supported by Tencent, which traded 2.92% higher at $329.60 on the Hong Kong Stock Exchange. Naspers owns 34% of Tencent, and this stake represents most of the value and income of the Naspers group.
Asian shares were higher on relief that North Korea did not conduct a further missile test at the weekend when it celebrated its founding anniversary. Ultra-low US bond yields also continued to support share prices. Yields fell even further on Friday to 2.016%, after New York Federal Reserve president William Dudley struck a less hawkish tone about rate hikes, while still defending them in a Thursday night speech.
Richemont traded 0.66% stronger on a new 52-week high of R119.56, and is now fast approaching its all-time high of R120.58 set on November 3 2015. Richemont is now more than 30% higher for the year to date. Steinhoff [JSE:SHF] lost 0.30% to R65.45, but Aspen [JSE:APN] traded 1.13% higher at R290.00. Aspen has gained more than 3% over the past 30 days.
Vodacom [JSE:VOD] seems to be back on the recovery road after the share lost 9.41% over the previous seven days on news that Vodafone wants to sell some of its Vodacom shares. At mid-morning Vodacom was 0.45% higher at R165.44. MTN [JSE:MTN], which lost 5.64% over the same period, shed 0.20% to R121.81.
Financial shares were a mixed bag. Capitec [JSE:CPI], which closed on a new all-time high of R912.05 on Friday, at mid-morning was 0.44% lower at R908.00. Standard Bank [JSE:SBK] was 0.40% higher in brisk trade at R163.80, but FirstRand [JSE:FSR] lost 0.20% to R54.79. Old Mutual [JSE:OML] was one of the busiest shares and traded 0.70% higher at R34.42.
Glencore, which gained more than 26% over the past 30 days, added 0.79% to another 52-week high of R62.41. Anglo American [JSE:AGL] traded 0.22% higher at R235.22 and BHP rose 0.39% to R240.60.
Platinum shares were however sharply lower as the platinum price dropped 0.22% to $1 004 per ounce. Impala Platinum [JSE:IMP] lost 2.37% to R40.02 and Anglo American Platinum [JSE:AMS] was 1.68% softer at R351.14.
