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Johannesburg - Naspers [JSE:NPN], by far the biggest share on the JSE, came close to the significant level of R3 000 per share on Wednesday morning. That helped to push the All-share and Top 40 indices on the JSE to new intraday 52-week highs.
Naspers traded 1.18% up at mid-morning at an all-time high of R2 961.05, a touch more than 1% below the R3 000 level. The share breached the R2 000 level as recently as December 29 last year, which means it has gained more than 45% for the year to date.
Naspers’s success was also the main driver behind the Industrial index, which gained 0.66% in early morning trade and pushed the major indices higher.
Global markets took a breather on Wednesday morning as investors' eyes were firmly glued on monetary policy, with a meeting of central bankers beginning in Jackson Hole in the United States later in the day. European Central Bank chief Mario Draghi was expected to speak later in the morning.
Global markets influence the JSE, as the big dual-listed shares are also listed on major markets elsewhere in the world and usually follow local price movements.
The dual-listed shares were however supported somewhat by the slightly weaker rand, which traded at R13.24 to the dollar as traders held their positions ahead of local consumer price data on Wednesday and the US Federal Reserve’s annual central banking conference.
Economists expect the local inflation rate dropped to 4.6% last month compared to 5.1% the previous month.
By mid-morning the All-share index on the JSE was 0.41% higher on a 52-week high of 56 265 points, and the Top 40 index gained 0.48% to a high of 49 829 points. The major indices also received support from the Financial index which traded 0.48% higher, with FirstRand [JSE:FSR] and Capitec [JSE:CPI] yet again reaching new intraday 52-week highs.
FirstRand gained 0.42% to R56.87. Before Wednesday’s trade the share price was almost 4% higher over the previous seven days; it has gained more than 20% over the past month.
Capitec gained 1.71% to an intraday high of R893.03, but Standard Bank [JSE:SBK] lost 0.13% to R164.58 and Nedbank [JSE:NED] was 0.10% softer at R221.77. Barclays Africa [JSE:BGA] gained 0.64% to R151.26.
Lower inflation can lead to a further drop in interest rates, which will be beneficial to banks and banking shares.
Steinhoff [JSE:SHF] was one of the big performers in the Industrial index and gained 2.68% to R67.13, after the group said it intends to list Steinhoff Africa Retail Limited (‘Star’) on the JSE main board before the end of September.
The new entity will iclude all Steinhoff’s retail interests in Africa, including a controlling stake in Shoprite [JSE:SHP], which pleased the market with its results on Wednesday.
Investors took profits on Wednesday after Shoprite’s share price gained 8% the previous day to reach a new 52-week high of R217.11. By mid-morning on Wednesday the share price was 0.56% down at R215.89.
Shoprite’s headline earnings for the past financial year were almost 12% higher and the group’s revenue grew by 8.4% to R141bn, while sales on a like-for-like basis advanced by 5.8%.
Mr. Price [JSE:MRP] gained 2.25% to R187.12 and the share is now more than 18% higher over the past month. The Foschini Group [JSE:TFG] gained 1.62% to R157.51 and Truworths [JSE:TRU] was 1.16% stronger at R83.71.
Resources shares took a breather after strong gains the previous two days and lost 0.07%. BHP [JSE:BIL], one of the stars on Tuesday after strong results, traded 0.08% softer at R237.05. Anglo American [JSE:AGL] lost 0.37% to R221.38.
