Publications
Partners
Johannesburg - Strong results from BHP [JSE:BIL], one of the five biggest companies on the JSE, and the continuing run in base metal prices gave resources a push on the JSE on Tuesday.
By mid-morning the resources sector was 1.47% higher after Monday’s strong run, which also gave the rest of the market a fillip.
At that stage the All-share index was already 0.80% higher at 55 892 points, while the Top 40 index gained 0.99% to 49 513 points in morning trade. The Industrial index lifted 0.77%, with Naspers [JSE:NPN] at a new all-time high. The Financial index was 0.48% stronger and FirstRand [FSR] traded 0.83% up on a new 52-week high of R546.01.
The only exception was the Gold index, which dropped 1.42% on Tuesday on the back of more profit taking. The gold price was virtually unchanged at $1 286.05, but the rand weakened somewhat to R13.21 to the dollar compared to Monday’s close of R13.15/$.
BHP was the main driver in the resources sector, gaining 3.44% to R239.42 after announcing that its headline earnings for the year surged to $5.89bn after it made a headline loss of $6.38bn last year.
The share also lifted the Australian market and helped strengthen mining shares on the London market by more than 2%.
The resources sector was supported by the continued strength of base metal prices. Zinc was lower after it reached the highest level since October 2007 on Monday, while copper inched back toward its highest peak since November 2014. Nickel, used in stainless steel, crept slightly higher to log a fresh high for the year.
Sue Trinh, head of Asia FX strategy at RBC Capital Markets in Hong Kong, warned however that commodity prices have mostly firmed "on speculative Chinese investment flow from the wealth management industry”. She questioned perceptions that the base metal price jump is based on growing demand from the Chinese steel industry.
The other commodity giants on the JSE were also higher, but their gains were far more modest. Anglo American [JSE:AGL] traded only 1.40% higher, while Glencore [JSE:GLN] was 1.14% stronger at R58.80. South32 [JSE:S32] was 0.36% softer at R30.58.
Platinum shares were down after the platinum price lost almost 1% to $975 per ounce. Impala Platinum [JSE:IMP] traded 4.67% lower at R37.37, but Anglo American Platinum [JSE:AMS] lost only 0.20% to R344.97.
The biggest share on the JSE, Naspers [JSE:NPN], was 0.94% higher on a new intraday all-time high of R2 926.00, after earlier trading as high as R2 933.00. Naspers made gains despite Tencent's 0.61% loss to HK$324.00. Tencent is Naspers’ biggest subsidiary, representing by far the biggest part of its income and market value.
Retail shares continued to be in high demand. Shoprite [JSE:SHP] was one of the busiest shares in terms of value traded, and gained 2.44% to R205.90. There was also great demand for Mr Price [JSE:MRP], which traded 1.12% stronger at R180. The stock gained almost 14% over the previous 30 days.
AngloGold Ashanti [JSE:ANG] dropped 3.42% to R126.69 after similar losses on Monday.
