JSE rises as dual-listed shares lead market higher

Johannesburg - Good economic news globally supported share prices and Friday’s run on the JSE continued on Monday, with most of the major indices higher at mid-morning.

Besides continuing speculation on a possible rate hike in the US and good news about factory production in Asia, positive indicators about the South African economy made a welcome change on Friday.

Data showed South Africa recorded a seventh consecutive trade surplus in August at nearly R6bn, while growth in private sector credit demand quickened.

More economic data released this week will indicate whether economic conditions in South Africa are turning around. New vehicle sales data for September is due out on Monday, Standard Bank’s purchasing managers’ index will be released on Wednesday and the business confidence index for September is due on Thursday.

The All-share index was already 0.57% higher at 55 899 points at mid-morning, while the Top 40 index traded 0.65% stronger at 49 700 points. The Industrial index gained 0.49%, the Financial index was 0.30% stronger and the Resources index gained 1.02%.

Share prices were also supported by the weaker rand, which traded at R13.64 to the dollar on Friday. Companies with international exposure earn more in rand from their foreign income.

The local unit is still pushed lower by firming expectations the US Federal Reserve will raise interest rates for a third time this year. Data pointing to steady growth in the world’s largest economy and talk of a potentially more hawkish successor to Fed chair Janet Yellen combined to push Treasury yields higher.

Dual-listed shares with big market capitalisations led the market higher. Naspers [JSE:NPN] traded 1.30% up at R2 957.96, after losing 1.76% over the previous seven days. British American Tobacco [JSE:BTI] gained 0.21% to R848.18 and Richemont [JSE:CFR] increased 0.73% higher to a new five-week high of R123.80

Among other shares with big international exposure, Bidvest [JSE:BVT] was 3.17% higher at R178.14 after gaining 4% over the previous seven days. Sappi [JSE:SAP], which gained more than 7% over the previous seven days, gained 0.70% to R92.70. Aspen [JSE:APN] added 1.21% to R307.25.

Anglo American [JSE:AGL] reached yet another intraday 52-week high after it gained 2.03% to R247.32. South32 [JSE:S32] went up 4.28% to a new all-time high of R36.08, and is now more than 33% higher over the previous 30 days.