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Johannesburg - Resources stocks on the JSE were on the run on Tuesday morning with Anglo American [JSE:AGL] at the forefront, reaching a new 52-week high.
The Resource index improved by 1.83%, which pulled the rest of the market higher to the brink of another attempt by the All-share index at a permanent breach of the 52 000 level.
By midday on Tuesday the All-share index was 0.86% higher at 51 845 points and the Top 40 index was 0.95% higher at 46 197 points.
There was no real support from overseas markets as Wall Street closed lower on Monday due to worries about political problems in the Ukraine and Gaza, but that did not deter the local market.
Imara SP Reid’s technical research team said in its daily market snapshot that the All-Share index and the Top 40 index reached important support levels in the mini-correction of the last few days, and there is more potential in the rebound.
Technical indicators are particularly favourable for the resources sector and all the major shares made strong runs on Tuesday morning.
The star performer was undoubtedly Anglo American, which gained almost 3% (2.87%) to trade at R287.00 by midday on Monday. This is just higher than the previous high of R286.70 set in May this year.
This was probably one of the most decisive moves of recent times as the share price is at current levels only 2.1% higher than three months ago, which means that it has mainly been drifting sideways recently.
Over a year the share price has increased by 31.7% and is currently trading at a price earnings ratio of 29.18%.
The other resources giant on the JSE, BHP Billiton [JSE:BIL], which reached new 52-week highs last week, traded at R371.14 by lunchtime on Tuesday, just 38c below the high of R371.52 set last week.
Glencore [JSE:GLN] traded at R66.00 by midday, which equals last week’s high and is 1.59% higher than the previous day.
Among the other resources stocks Sappi [JSE:SAP] continued its record-breaking run and gained 2.61% on Tuesday morning to trade at a new 52-week high of R46.05, smashing the previous day’s record of R44.81.
The share price, which is on a strong run after the latest results indicated a solid turnaround in the company’s fortunes, has gained 15.1% over the last month and is now 82.4% higher than a year ago.
Sasol [JSE:SOL], which reached new highs in June before it became a victim of profit taking, improved by 1.86% on Tuesday morning and is fast approaching the previous high of R645.10 set on June 16.
Kumba Iron Ore [JSE:KIO] announced on Tuesday that its first-half earnings were 16% lower than the previous year due to weaker iron prices, but the share price rose 2.2% to R356.90.
It is still 26.5% lower than a year ago, but is currently trading at a very attractive price to earnings ratio of only 7.22.
The Resource index improved by 1.83%, which pulled the rest of the market higher to the brink of another attempt by the All-share index at a permanent breach of the 52 000 level.
By midday on Tuesday the All-share index was 0.86% higher at 51 845 points and the Top 40 index was 0.95% higher at 46 197 points.
There was no real support from overseas markets as Wall Street closed lower on Monday due to worries about political problems in the Ukraine and Gaza, but that did not deter the local market.
Imara SP Reid’s technical research team said in its daily market snapshot that the All-Share index and the Top 40 index reached important support levels in the mini-correction of the last few days, and there is more potential in the rebound.
Technical indicators are particularly favourable for the resources sector and all the major shares made strong runs on Tuesday morning.
The star performer was undoubtedly Anglo American, which gained almost 3% (2.87%) to trade at R287.00 by midday on Monday. This is just higher than the previous high of R286.70 set in May this year.
This was probably one of the most decisive moves of recent times as the share price is at current levels only 2.1% higher than three months ago, which means that it has mainly been drifting sideways recently.
Over a year the share price has increased by 31.7% and is currently trading at a price earnings ratio of 29.18%.
The other resources giant on the JSE, BHP Billiton [JSE:BIL], which reached new 52-week highs last week, traded at R371.14 by lunchtime on Tuesday, just 38c below the high of R371.52 set last week.
Glencore [JSE:GLN] traded at R66.00 by midday, which equals last week’s high and is 1.59% higher than the previous day.
Among the other resources stocks Sappi [JSE:SAP] continued its record-breaking run and gained 2.61% on Tuesday morning to trade at a new 52-week high of R46.05, smashing the previous day’s record of R44.81.
The share price, which is on a strong run after the latest results indicated a solid turnaround in the company’s fortunes, has gained 15.1% over the last month and is now 82.4% higher than a year ago.
Sasol [JSE:SOL], which reached new highs in June before it became a victim of profit taking, improved by 1.86% on Tuesday morning and is fast approaching the previous high of R645.10 set on June 16.
Kumba Iron Ore [JSE:KIO] announced on Tuesday that its first-half earnings were 16% lower than the previous year due to weaker iron prices, but the share price rose 2.2% to R356.90.
It is still 26.5% lower than a year ago, but is currently trading at a very attractive price to earnings ratio of only 7.22.
