Publications
Partners
Johannesburg - Investors on the JSE have not given up on a rebound in share prices after the losses of the past few weeks.
All the major indices were sharply higher again on Friday morning, after a breather on Thursday ended the strong run of the previous few days.
Thursday’s pullback was expected by analysts, but the losses were more substantial than available indicators suggested.
The same can be probably said of the market run on Friday, with the All Share-index and the Top 40-index both improving more than 1.5% by midday - breaking convincingly through important resistance levels.
The All Share-index was 1.67% higher on 49 474 points and the Top 40-index improved with a massive 1.81% to 44 122.
The Top 40-index easily breached the important resistance level at 43 600 with more than 500 points after two previous failed attempts earlier this week. Analysts said that it is important that the Top 40-index build substantial support above that level for any recovery on the JSE to be sustainable.
The market was supported by stronger markets worldwide, after stronger than expected growth figures in the US gave Wall Street a boost.
The US economy expanded in the third quarter by 3.5% which is much higher than the 3% expected by economists.
The news that the Bank of Japan eased monetary policy even further from the current record low levels was another boost.
Normally good economic news is seen as an indicator that interest rates might rise, but it seems that the world’s monetary authorities are not finished with their efforts to give the struggling world economy a boost.
This is good news for emerging markets like South Africa, as international investors explore these market for higher yields than the low ones in their own countries.
The fact that the rand managed to hold its own against the rampant dollar the last few days, is a sign that foreign investors are investing on the JSE again.
The financial sector was again the star performer this morning and improved with 2.25%, despite warnings from technical analysts that bank shares in particular are now overbought.
Rand Merchant Bank Holdings [JSE:RMI] traded on Friday at a new 52-week high of R60.79, which is 2.86% stronger than Thursday’s close. Its banking subsidiary, FirstRand [JSE:FSR], gained 2.81% to R47.10, also a 52-week high.
In the insurance sector Sanlam [JSE:SLM] also reached a new 52-week high, when the share gained 2.73% to R69.35.
The Industrial index was also more than 2% higher (2.15%) and breached the resistance level of 59 000 easily. Naspers [JSE:NPN] gained a solid 3.03% to R1 353.84 and SABMiller [JSE:SAB], another favourite amongst foreign investors, improved with 1.74% tot R616.56.
The resources sector’s gains were more modest (0.77%) but BHP Billiton [JSE:BIL] managed to recover with 0.62% from Thursday’s 52-week low to trade at R282.50. Anglo American [JSE:AGL] was 1.38% higher on R231.61.
All the major indices were sharply higher again on Friday morning, after a breather on Thursday ended the strong run of the previous few days.
Thursday’s pullback was expected by analysts, but the losses were more substantial than available indicators suggested.
The same can be probably said of the market run on Friday, with the All Share-index and the Top 40-index both improving more than 1.5% by midday - breaking convincingly through important resistance levels.
The All Share-index was 1.67% higher on 49 474 points and the Top 40-index improved with a massive 1.81% to 44 122.
The Top 40-index easily breached the important resistance level at 43 600 with more than 500 points after two previous failed attempts earlier this week. Analysts said that it is important that the Top 40-index build substantial support above that level for any recovery on the JSE to be sustainable.
The market was supported by stronger markets worldwide, after stronger than expected growth figures in the US gave Wall Street a boost.
The US economy expanded in the third quarter by 3.5% which is much higher than the 3% expected by economists.
The news that the Bank of Japan eased monetary policy even further from the current record low levels was another boost.
Normally good economic news is seen as an indicator that interest rates might rise, but it seems that the world’s monetary authorities are not finished with their efforts to give the struggling world economy a boost.
This is good news for emerging markets like South Africa, as international investors explore these market for higher yields than the low ones in their own countries.
The fact that the rand managed to hold its own against the rampant dollar the last few days, is a sign that foreign investors are investing on the JSE again.
The financial sector was again the star performer this morning and improved with 2.25%, despite warnings from technical analysts that bank shares in particular are now overbought.
Rand Merchant Bank Holdings [JSE:RMI] traded on Friday at a new 52-week high of R60.79, which is 2.86% stronger than Thursday’s close. Its banking subsidiary, FirstRand [JSE:FSR], gained 2.81% to R47.10, also a 52-week high.
In the insurance sector Sanlam [JSE:SLM] also reached a new 52-week high, when the share gained 2.73% to R69.35.
The Industrial index was also more than 2% higher (2.15%) and breached the resistance level of 59 000 easily. Naspers [JSE:NPN] gained a solid 3.03% to R1 353.84 and SABMiller [JSE:SAB], another favourite amongst foreign investors, improved with 1.74% tot R616.56.
The resources sector’s gains were more modest (0.77%) but BHP Billiton [JSE:BIL] managed to recover with 0.62% from Thursday’s 52-week low to trade at R282.50. Anglo American [JSE:AGL] was 1.38% higher on R231.61.
