Publications
Partners
Johannesburg - Share prices on the JSE jumped on Monday in response to stronger Asian markets which traded at their highest level in ten years, but the market then moved mostly sideways for the rest of the morning.
Most of the top shares shot up in early trade, but intraday graphs soon turned sideways and some of the big shares were even back in the red by mid-morning.
With the rand fairly steady against a stronger dollar, there was not much support even for dual-listed shares and investors seem to be waiting for new indicators that could direct the market. The rand traded at R13.19 to the dollar.
Most of the local economy's attention is on the Reserve Bank’s monetary policy committee meeting later this week, and the latest inflation figures to be released on Wednesday.
Indications are that the Reserve Bank will cut its repo rate again and according to some analysts that possibility is already discounted; however, investors will look for clues about future prospects in the bank’s comments.
The All-share index gained 363 points almost immediately after the market opened and then lost 18 points over the next two hours. The Top 40 index jumped 430 points in early trade and then drifted 66 points lower over the next two hours. The Industrial index followed a similar pattern.
By mid-morning the All-share index was 0.54% higher at 55 948 points, after it surged to 56 018 points in early trade. The Top 40 index, which raced to 49 705 points, at mid-morning was 0.65% stronger at 49 597 points.
The Industrial index was 0.53% higher and the Financial index 1% stronger. The Resources index was only 0.13% higher at 35 119 points, after initially trading as high as 31 257 points. The Gold index was 1.25% lower after gold traded 0.51% softer at $1 341.70 per fine ounce.
Asian shares were higher and the dollar stronger on Monday, on indications that the Federal Reserve will keep interest rates unchanged at its meeting later this week. There was also relief that the weekend passed with no new provocation by North Korea, though Pyongyang’s nuclear ambitions will be centre stage when US President Donald Trump addresses world leaders at the United Nations on Tuesday.
Naspers [JSE:NPN] was one of the shares which lost momentum after a promising start. At mid-morning the share was 0.55% stronger at R2 939.93, after reaching R2 960.00 in early trade. Tencent, Naspers’s Chinese subsidiary which has a big influence on its share price, was 2.13% up on a new high of HK$246.00.
British American Tobacco [JSE:BTI] traded as high as R853.48 but then turned south and at mid-morning was already 1.03% softer at R830.38. Steinhoff [JSE:SHF] jumped to R62.95 and then turned sideways. By mid-morning the stock was still 1.23% higher than Friday’s closing price at R62.83.
Richemont [JSE:CFR] and Mondi Plc [JSE:MNP], the two high flyers in the industrial sector, both reached new mid-morning highs. Richemont was 1.21% stronger on a new 52-week high of R120.94, and Mondi Plc gained 1% to an all-time high of R361.92. Mondi’s local subsidiary, Mondi Ltd [JSE:MND], was 0.97% higher on a new high of R360.80.
Among the banks, Standard Bank [JSE:SBK] gained 2.03% to R160.00 and FirstRand [JSE:FSR] was 1.83% higher at R55.85.
Among the insurers, Discovery [JSE:DSY] jumped 3.73% to R127.93 and Sanlam [JSE:SLM] was 2.10% stronger at R68.48. Old Mutual [JSE:OML] gained 1.24% to R35.06.
Platinum miner Lonmin [JSE:LON], which is already more than 32% down over the previous 90 days, lost 6.13% in early trade on Monday to only R12.86. The share price was hurt by unconfirmed reports that Lonmin has been given a deadline by South African authorities to fix non-compliant parts of its social labour plan or risk having its mining right suspended.
Kumba Iron Ore [JSE:KIO] was 3.23% softer on R213.34, with the iron ore price facing renewed pressure as it risks sliding back into the $60 levels, as China’s economy shows signs of cooling off and global mine supply increases. Planned steel capacity cuts in the world’s biggest consumer this winter could further cut demand.
