Johannesburg - Naspers [JSE:NPN] led a strong surge on the JSE on Monday, as the share traded above R3 500 for the first time, after it breached the R3 000-level only a month ago.
Naspers was by mid-morning 2.13% higher than Friday at a new all time high of R3 543.87. That meant the share price gained more R500 or more than 17% over the past month, as it closed above R3 000 for first time as recent as 3 October.
Its share price was again supported by the Chinese internet giant Tencent, of which Naspers owns 34.4%, which traded 2.45% higher at a new record of HK$ 377.00 on Monday in Hong Kong. Tencent received a boost from the news that China Literature, an associate company which sell Chinese books, music and other entertainment on the same basis as Amazon, raised more than $1bn in Hong Kong to expand its activities.
Another strong performer was Kumba [JSE:KIO], whose share price traded as low as R26 in January last year, but now breached the R300-level on Monday morning for the first time since September 2014
Kumba, as well all the major commodity giants, all traded at 52-week highs again as the resources sector were supported by a big drop in the rand and stronger commodity prices.
The rand, which started to lose ground on Friday, continued on the weaker levels on Monday and traded mid-morning on Monday at R14.25 to a dollar, almost 2% weaker than Friday after strong US data boosted the dollar.
A weaker rand means that commodity companies receive more for their products in rand as it is directly priced in dollar. The bigger dual-listed industrial shares also benefit, as they also earn most of their income in foreign currencies.
By mid-morning the resources index was already 1.55% higher at a 52 week high of 38 818 points and gold gained 2.74%, while the industrial index traded 0.54% stronger at a new all time high of 90 739 points. The result was that the All-share index was on the verge of breaching 60 000 points, as at was 0.54% higher at yet another record of 59 980 points, while the Top 40-index gained 0.67% to a record of 53 556 points.
The financial index was pulled lower by the weaker rand and the index traded mid-morning 0.22% softer.
Kumba was mid-morning 3.66% higher at R301.70 after the share was in early trade as high as R305.99. The share price was also supported by the news that the iron ore price gained 5% in China on Monday morning despite efforts by the Chinese authorities to curb steel production in that country. The share gained more than 95% over the previous six months and more than 73% over the previous thirty days.
Assore [JSE:ASR], the other South African producer of iron ore, was a massive 5.14% higher at new 52 week high of R327.34.
Anglo American [JSE:AGL], Kumba’s holding company, traded solid 3.04% higher at a new 52 week high of R283.20. The commodity giants are also performing strongly on European markets, supported by strong commodity prices.
Commodity prices also received a boost from a higher oil price, which jumped to a more than two-year peak as Saudi Arabia’s crown prince cemented his power through an anti-corruption crackdown. Mohammed bin Salman’s purge led to arrests of royals, ministers and investors including prominent business billionaire Alwaleed bin Talal.
All the major commodity shares are therefore trading at 52 week highs, with Glencore [JSE:GLN] 0.65% higher at an all time high of R70.81. BHP [JE:BIL] was 2.66% stronger at a 52 week high of R271.54 and African Rainbow Minerals [JSE:ARM] was also the highest in 52 weeks when it gained 1.58% to R131.04. South 32 [JSE:S32] was 0.98% higher at new all time record of R39.09.
Amongst the stronger gold shares Anglogold Ashanti [JSE:ANH] traded a solid 3.86% stronger at R133.81 while Sibanye [JSE:SGL] was 1.85% higher at R19.86.
Sasol [JSE:SOL] continued to benefit from the weaker rand and was 0.61% higher at R427.68. The share was before today’s trade more than 13% higher over the past month.
* Fin24 is part of Media24, which is owned by Naspers.
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