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Johannesburg - Share prices on the JSE were heading upwards again by mid-morning on Friday, after the customary profit-taking earlier in the day.
The biggest drop in early trade was in the prices of resources shares; the Resources index was almost 1% down shortly after the opening but gained 0.48% by mid-morning. Resources shares were the top performer over the past week, with the index gaining almost 8% over the previous seven days.
The Industrial index, which includes most of the big dual-listed shares which represent a major part of the JSE’s market value, was also higher again, in line with the FTSE index in London which is heading for its fourteenth consecutive day of gains and yet another record.
At mid-morning the Industrial index was 0.85% stronger. Most of these shares are also listed in London and normally rise when the share price in London is higher. The FTSE index is supported by a weak pound, as the majority of the shares on the index earn most of their income abroad in other currencies and earn more with a weak pound.
As a result, the All-share index was 0.58% higher at 52 748 points at mid-morning, while the Top 40 index traded 0.68% stronger at 46 029 points. Before Friday's trade the All-share index was 3.32% up over the previous seven days, while the Top 40 index gained 4% over the same period.
The Financial index lifted 0.45% on Friday morning and is now flat over the past week.
Markets elsewhere in world, except for the FTSE index in London, are becoming more cautious with investors disappointed that president-elect Donald Trump failed to elaborate on stimulus plans for the US economy at a news conference two days ago.
The latest trade data from China also put the spotlight on the possibility of anti-globalisation under a Trump presidency. December exports fell by a more-than-expected 6.1% from a year earlier, while imports beat forecasts slightly, government data released on Friday showed.
As the world's largest trading nation, China could come under pressure from protectionist measures this year if Trump follows through on his campaign pledges to brand it a currency manipulator and impose heavy tariffs on the country's imports.
"The trend of anti-globalisation is becoming increasingly evident, and China is the biggest victim of this trend," Chinese customs spokesperson Huang Songping told reporters.
If China is hit by protectionist policies from the USA it could have a negative influence on the demand for commodities, of which South Africa is an important supplier.
Anglo American [JSE:AGL], which is now more than 14% higher than a week ago, at mid-morning was 0.13% softer at R219.33 after losing more than 1% in earlier trade. BHP Billiton [JSE:BIL] was more than 1% lower in early trade but later traded 0.03% stronger at R238.50.
Richemont [JSE:CFR], which gained more than 16% over the previous seven days, took a breather on Friday and at mid- morning was 0.14% softer at R102.75.
Naspers [JSE:NPN], which took a breather on Thursday when it lost more than 2%, made up most of those losses on Friday and traded 1.53% stronger at R1 178.60. Before Friday’s trade Naspers was more than 6% higher over the past week.
Retail shares are still in the spotlight and three retailers, Woolworths [JSE:WHL], Mr Price [JSE:MRP] and Truworths [JSE:TRU], were among the busiest shares in terms of turnover. Woolworths was also the busiest share in terms of volume, with 3.6 million shares sold for more than R33.8m. The stock, which lost almost 7% over the previous seven days, was 1.11% higher at R66.73.
Mr Price was only 0.03% stronger at R152.94 but Truworths International gained 3.5% to R78.75. The clothing retailer group said its total retail sales rose 21% to R10.2bn but cash sales accounted for all of its growth, while credit sales remained unchanged due to new credit affordability assessment regulations.
Truworths said diluted headline earnings per share for the 26 weeks to December 25 will drop to between 380.6 cents and 397.9c per share, up to 6% lower than in the corresponding period in 2015.
