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Johannesburg - Resources shares were again the star performers on the JSE on Wednesday, as commodity prices continued to firm on expectations of increased infrastructure spending in the developed world.
By mid-morning the resources index was 1.67% higher, after the prices of the big dual-listed commodity shares also gained sharply in London.
The Gold index, which lost more than 4% over the previous seven days in response to the stronger dollar, recovered 0.97% due to some bargain-hunting.
The rest of the local market was treading water as the strong run on Wall Street on Monday, when all the major indices set new records, came to a halt on Tuesday as a result of profit-taking.
By mid-morning the All-share index was only 0.35% higher at 51 296 points while the Top 40 index had gained 0.35% to 44 732 points. The Industrial index - hampered by the strong rand, which strengthened further to trade at R14.12 to the dollar - shed 0.18%. The Financial index was 0.26% stronger.
Industrial metals advanced on talk of demand from China, as well as expectations that US president elect Donald Trump will drastically increase spending on infrastructure in the US to boost the American economy.
Analysts also expect some modest infrastructure spending and housing stimulus to counter possible effects of Brexit in the British budget update, to be delivered this week.
Copper was near a 16-month high, while iron ore futures surged 8% on the back of higher steel prices.
Anglo American [JSE:AGL] set yet another 52-week high of R213.97 when the share price gained 3.37% in morning trade. Before Wednesday’s trade, it was already 218.9% higher for the year to date.
African Rainbow Minerals [JSE:ARI], which is about 160% higher for the year to date, added 3.2% to trade at a new high of R113.00.
South32 [JSE:S32] was on a new intraday high of R30.45 in early trade, but then lost ground. By mid-morning it was still 5.53% stronger at R30.14.
Commodity giants BH Billiton [JSE:BIL] and Glencore [JSE:GLN] are both close to new 52-week highs. BHP Billiton gained 2.66% to R238.18, and Glencore was 2.2% higher at R50.51.
Iron ore producer Kumba [JSE:KIO] was also 3.04% firmer at R169.10, close to the 52-week high of R172.50. The share is already 350% stronger for the year to date. Assore [JSE:ASR], the other major iron ore producer, was 0.85% up on a new 52-week high of R255.70.
Among the gold shares AngloGold Ashanti [JSE:ANG] gained 0.97% to R159.29 and Sibanye [JSE:SGL] was 1.34% higher at R32.43.
FirstRand [JSE:FSR] also traded at a new 52-week high after the share gained 0.31% to R52.15. Nedbank [JSE:NED] and Standard Bank [JSE:SBK], which also closed on 52-week highs on Tuesday, fell victim to profit-taking. Nedbank was 1.31% softer at R235.88 and Standard Bank lost 0.35% to R154.55.
