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Johannesburg - The JSE started the second half of the year on a positive note on Tuesday with the All-share index again firmly above 51 000 points and close to previous records.
Resource stocks were particularly strong on the back of new indications that a slowdown in China, the biggest market for South African commodities, has bottomed out.
Analysts also said at the beginning of the third quarter additional funds usually flow into equities.
This is as portfolio managers try to reposition their portfolios.
By midday on Tuesday the All-share index was 0.69% higher on 51 294 points, just below the previous record, and the Top 40 index was also firmly above 46 000 on 46 310 points, which is 0.74% higher than on Monday.
After last week’s correction the recovery on the JSE started tentatively on Monday whith the market closing 0.6% higher.
That meant the JSE ended the first half of the year about 10% higher, despite the desperate state of the South African economy.
The research team of the brokerage firm Imara SP Reid said in its daily morning snapshot that the market is still relatively elevated.
They said most market participants are well aware of it, but at the moment “trend” dominates all other considerations, including macroeconomic fundamentals and valuations.
The latest economic news is mixed with the news that the country’s trade deficit topped R6bn again last month.
Exports rose by 0.6% to R78.36bn, while imports decreased by 5.9% to R84.93bn.
The prospects for better exports improved even further with the news that the official purchasing managers' index (PMI) of manufacturing activity in China in June came was slightly higher than in May.
This added to hopes that a slowdown in the world's number two economy has bottomed out.
A separate PMI by banking giant HSBC hit 50.7, up from 49.4 in May.
It is the first time it has been in positive territory this year, thanks to a series of mini-stimulus measures by the Chinese government.
It was, therefore, no surprise that the resources sector was the strongest performer with the Resources 10 index 1.74% higher.
The volatile Gold index improved by 3.45%.
Amongst the big resource stocks Anglo American [JSE:AGL] performed the best on Tuesday morning and improved by 3.19% to R268.32.
Investors seem to be positive about the group’s intentions to sell less profitable operations worldwide, including some of its older platinum mines in the Rustenburg area.
Anglo American Platinum [JSE:AMS] also responded positively and gained 3.33% to R476.40.
Amongst the other diversified commodity giants BHP Billiton [JSE:BIL] was 1.81% higher on R351.99 and Glencore [JSE:GLN] rose 1.43% to R60.15.
Kumba Iron Ore [JSE:KIO], which is very dependent on China, improved by 1.58% to R344.53.
Amongst the volatile gold shares Gold Fields [JSE:GFI] was 3.96% higher on R39.92 on Tuesday morning, while Harmony [JSE:HAR] improved by 3.53% to R32.25, despite no major changes in the gold price.
Resource stocks were particularly strong on the back of new indications that a slowdown in China, the biggest market for South African commodities, has bottomed out.
Analysts also said at the beginning of the third quarter additional funds usually flow into equities.
This is as portfolio managers try to reposition their portfolios.
By midday on Tuesday the All-share index was 0.69% higher on 51 294 points, just below the previous record, and the Top 40 index was also firmly above 46 000 on 46 310 points, which is 0.74% higher than on Monday.
After last week’s correction the recovery on the JSE started tentatively on Monday whith the market closing 0.6% higher.
That meant the JSE ended the first half of the year about 10% higher, despite the desperate state of the South African economy.
The research team of the brokerage firm Imara SP Reid said in its daily morning snapshot that the market is still relatively elevated.
They said most market participants are well aware of it, but at the moment “trend” dominates all other considerations, including macroeconomic fundamentals and valuations.
The latest economic news is mixed with the news that the country’s trade deficit topped R6bn again last month.
Exports rose by 0.6% to R78.36bn, while imports decreased by 5.9% to R84.93bn.
The prospects for better exports improved even further with the news that the official purchasing managers' index (PMI) of manufacturing activity in China in June came was slightly higher than in May.
This added to hopes that a slowdown in the world's number two economy has bottomed out.
A separate PMI by banking giant HSBC hit 50.7, up from 49.4 in May.
It is the first time it has been in positive territory this year, thanks to a series of mini-stimulus measures by the Chinese government.
It was, therefore, no surprise that the resources sector was the strongest performer with the Resources 10 index 1.74% higher.
The volatile Gold index improved by 3.45%.
Amongst the big resource stocks Anglo American [JSE:AGL] performed the best on Tuesday morning and improved by 3.19% to R268.32.
Investors seem to be positive about the group’s intentions to sell less profitable operations worldwide, including some of its older platinum mines in the Rustenburg area.
Anglo American Platinum [JSE:AMS] also responded positively and gained 3.33% to R476.40.
Amongst the other diversified commodity giants BHP Billiton [JSE:BIL] was 1.81% higher on R351.99 and Glencore [JSE:GLN] rose 1.43% to R60.15.
Kumba Iron Ore [JSE:KIO], which is very dependent on China, improved by 1.58% to R344.53.
Amongst the volatile gold shares Gold Fields [JSE:GFI] was 3.96% higher on R39.92 on Tuesday morning, while Harmony [JSE:HAR] improved by 3.53% to R32.25, despite no major changes in the gold price.
