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Johannesburg - Some of the big dual-listed commodity giants on the JSE traded at new 52-week highs on Wednesday, as the weak dollar supported the prices of commodities and commodity shares.
By mid-morning on Wednesday the Resources index on the JSE was already 1.38% higher, with shares like Anglo American [JSE:AGL] and Glencore [JSE:GLN] reaching new highs.
Improved sentiment in the resources sector followed after the prices of iron ore, copper and gold all improved and oil prices lifted, partly due to dollar weakness.
The greenback struggled to regain its poise on Wednesday after the Trump administration accused Germany, Japan and China of devaluing their currencies to gain a trade advantage. The US currency suffered its worst January in three decades after President Donald Trump complained that every "other country lives on devaluation".
At mid-morning the All-share index was 0.60% higher at 53 104 points, while the Top 40 index gained 0.71% to trade at 46 255 points.
The Industrial index was also higher, gaining 0.58% on the back of higher European markets which were supported by good company results. Almost all the dual-listed shares on the JSE are also listed in Europe and benefit if their prices rise in Europe.
The Financial index took a breather after a strong run. At mid-morning the index was 0.04% lower as the rand stabilised at R13.51 to the dollar, compared to the previous day’s close of R13.53.
The stronger rand helped improve market sentiment, settling the nerves of investors which were rattled earlier in the week by rumours that Finance Minister Pravin Gordhan is to be replaced in yet another Cabinet reshuffle.
By mid-morning Anglo American was 1.78% higher on a new 52-week high of R234.50. The share price has moved only 3% over the previous seven days, but is already 41.4% higher over the past 90 days.
Glencore traded 1.85% stronger on a new high of R56.09. Although the share price hardly moved over the past week, it gained 45.5% over the past 90 days.
It was reported on Wednesday that Glencore is considering bidding for Impala Platinum’s [JSE:IMP] 65% stake in a chrome waste-retreatment operation in South Africa. Glencore, which has chrome assets nearby, is bullish on prices and keen to grow its presence in the industry that supplies stainless steelmakers with the ingredient that prevents corrosion.
Impala Platinum traded 2.54% stronger at R54.80, and Anglo American Platinum [JSE:AMS] gained 1.79% to R357.57.
BHP Billiton [JSE:BTI] traded 1.55% higher at R248.41, not far off the 52-week high of R249.42. The company is facing a strike at its Escondida mine in Chile, the world's biggest copper mine, after workers voted on Wednesday morning to reject a company wage offer.
