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Can JSE maintain record-breaking run?

Port Elizabeth - SA shares surged to another record high the past week as international markets initially held onto their recent gains, commodity prices remained high on the back of strong demand and the rand weakened to above R10 per dollar once again.

The JSE closed on a new high on Wednesday afternoon following US markets higher after positive US employment data. Local shares rallied further on Thursday to reach yet another new high.

This solicited some profit taking on Friday amid weaker international markets on news that the US government is running out of cash once again. The government of the world's biggest economy will this week ask politicians once again for permission to make more debt to be able to function for another few months.

Locally, platinum shares declined at the week end due to renewed labour problems at platinum mines. Amplats (JSE: AMS) in Implats (JSE: IMP) both ended the week on a weaker note and small declines in selected shares.

The week ahead

Higher inflation is usually good for shares, but concerns of eventual changes in monetary policy might put a damper on the market in the next few weeks.

StatsSA announced last week that inflation reached 6.7% in August.

The Reserve Bank last week announced credit and money supply figures. If private credit extension shows a large increase, it will give governor Gill Marcus more ammunition to start pushing for higher interest rates.

Some important economic leading indicators will also be announced this week, namely new vehicle sales figures, purchasing managers' index and the business confidence index.

Of importance is the EU interest rate announcement on Wednesday, which will hopefully not send markets into a tailspin.

Shares to watch this week include banks and financial services counters, mining and large international companies.

- Fin24

*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at NMMU.

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Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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