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Johannesburg - The All-share index on the JSE traded above 60 000 points for the first time on Tuesday, supported by Naspers, the biggest share on the JSE, which was pushed higher by another rally in the price of Tencent, its Chinese subsidiary.
Retail shares also rallied after Mr Price [JSE:MRP] surprised the market with a very strong trading statement, which led to the share gaining more than 7% in early trade.
Naspers [JSE:NPN], by far the biggest share on the JSE and which traded above R3 500 for the first time on Monday, gained another 2.75% to R3 638.97 on Tuesday. The shares gained 3.93% over the seven days before Tuesday and 23.8% over the previous thirty days. The gain for the year to date is now more than 75%.
With Naspers representing more than 12% of the industrial index on the JSE it was no surprise that the major indices on the JSE continued their record breaking run.
Mid-morning the All-share index was above 60 000 points for the first time when it gained 0.79% to trade at a new all-time high of 60 448 points. The Top 40-index was also 0.88% higher at a new all-time high of 54 033 points.
Before Tuesday's trade, the All-share index was already 16.51% higher over the past ninety days, while the Top 40 index gained 17.9% over the same period.
These indices were pushed higher by the industrial index which was 1.01% higher at a new all-time high of 91 539 points, while the resources-index gained 1.09% to set a new 52 week high of 39 346 points. The gold index was also 1.51% higher.
The financial index, which continued to lag behind the rest of the market after the medium term budget statement last month, was another 0.14% lower.
Naspers’ strong gains were made possible by Tencent, its Chinese internet subsidiary, which is also setting new records on the Hong Kong Stock Exchange.
Tencent jumped another 3.71% on Tuesday to a new record of HK$391.00 which meant the share price gained more than 11% over the past seven days. It closed on Tuesday last week at HK$349.20.
Naspers owns 34.4% of the Chinese internet giant and this interest represents by far the biggest part of Naspers' income and market value.
The gain in the industrial index was mainly due to Naspers, as the other giants in the industrial index hardly moved.
British American Tobacco [JSE:BTI] was only 0.05% higher at R923.23. Richemont [JSE:CFR] traded only 0.08% higher at R130.46 and Remgro [JSE:REM] gained only 0.05% to R210.11.
There was, however, a lot of activity in the retail sector after Mr Price jumped 7.62% to R190.50 after it was almost unchanged over the past thirty days.
The jump was the result of a trading statement that the group’s earnings for the six months until September 30 that earnings are likely to be between 20% and 25% higher. No further details were given.
This news also pulled other retail shares higher with Steinhoff Africa Retail, which has interests in Shoprite [JSE:SHP] and Pep Stores, gaining 3.01% to R23.59.
Truworths [JSE:TRU] and Woolworths [JSE:WHL], which were both under pressure lately after disappointing news about their results, traded higher.
Truworths was 0.84% stronger at R72.20 and Woolworths traded 0.45% higher at R56.00.
The major commodity giants continued to trade higher at new heights. BHP [JSE:BIL] was at a new 52 week high of R275.32 and Anglo American [JSE:AGL] was 1.121% stronger at a 52 week high of R283.91.
Bots shares gained more than 7% over the seven days before Tuesday's trade.
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