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Johannesburg - Major industrial shares and dual-listed shares with big market capitalisations edged higher on Monday morning on the JSE, pulling the market modestly higher.
One of them, Naspers [JSE:NPN], is again trading at an all-time high which again pushed the All-share index to just above 50 000 points.
Shares like SABMiller [JSE:SAB], Naspers and Richemont [JSE:CFR] have a big weight in the Industrial index, the top performer on Monday morning.
However, excitement in the resources sector over the possibility that the European Central bank’s economic stimulus will increase the demand for commodities did not last long and the sector was sharply lower again, pulled down by some of the heavyweights.
By midday the All-share index was 0.4% higher at 50 018 points and the Top 40-index had gained 0.5% points to 43 875 points. The Industrial index gained 1.42% and the Financial index rose 0.57%, while the market is trying to anticipate the South African Reserve Bank’s reaction to calls for interest rates to follow inflation lower.
The bond market is already strengthening, discounting the possibility, but it is extremely doubtful if the Reserve Bank will take such a major decision at this week's monetary policy committee meeting as the monetary authorities will first want to check the sustainability of the lower oil price and inflation dip.
The stronger industrial shares could be the forerunner of increased interest by foreign investors using the cheap money that will become available in the ECB’s bond-buying programme to chase higher yields in developing markets.
They prefer shares with wide international exposure and big market capitalisations, to ensure that their actions will not lead to sharp movements.
Richemont increased by a solid 2.44% to R97.78. Although trading in Naspers shares was not particularly brisk, the price lifted by 2.67% to a new high of R1 691.99, which means it has increased by 1.87% over the last three months and 51.3% over the past 12 months.
The market did not show much reaction to the results of the Greek election, but the uncertainty coming from the huge win by an anti-austerity party will surely take its toll over time. The results throw the international bailout for Greece into doubt and spark fears it could leave the eurozone.
In the resources sector Kumba [JSE:KIO] lost another 4.68% to a new 52-week low of R213.83. As recently as February last year, the share traded at a 52-week high of R465. The stock has now lost 37.7% over the last three months and 50.8% over the last 12 months.
Glencore [JSE:GLN], which lost almost 6% on Friday, dropped another 1.98% to reach a new 52-week low of R42.00. The share is 29.2% softer on the past 12 months.
One of them, Naspers [JSE:NPN], is again trading at an all-time high which again pushed the All-share index to just above 50 000 points.
Shares like SABMiller [JSE:SAB], Naspers and Richemont [JSE:CFR] have a big weight in the Industrial index, the top performer on Monday morning.
However, excitement in the resources sector over the possibility that the European Central bank’s economic stimulus will increase the demand for commodities did not last long and the sector was sharply lower again, pulled down by some of the heavyweights.
By midday the All-share index was 0.4% higher at 50 018 points and the Top 40-index had gained 0.5% points to 43 875 points. The Industrial index gained 1.42% and the Financial index rose 0.57%, while the market is trying to anticipate the South African Reserve Bank’s reaction to calls for interest rates to follow inflation lower.
The bond market is already strengthening, discounting the possibility, but it is extremely doubtful if the Reserve Bank will take such a major decision at this week's monetary policy committee meeting as the monetary authorities will first want to check the sustainability of the lower oil price and inflation dip.
The stronger industrial shares could be the forerunner of increased interest by foreign investors using the cheap money that will become available in the ECB’s bond-buying programme to chase higher yields in developing markets.
They prefer shares with wide international exposure and big market capitalisations, to ensure that their actions will not lead to sharp movements.
Richemont increased by a solid 2.44% to R97.78. Although trading in Naspers shares was not particularly brisk, the price lifted by 2.67% to a new high of R1 691.99, which means it has increased by 1.87% over the last three months and 51.3% over the past 12 months.
The market did not show much reaction to the results of the Greek election, but the uncertainty coming from the huge win by an anti-austerity party will surely take its toll over time. The results throw the international bailout for Greece into doubt and spark fears it could leave the eurozone.
In the resources sector Kumba [JSE:KIO] lost another 4.68% to a new 52-week low of R213.83. As recently as February last year, the share traded at a 52-week high of R465. The stock has now lost 37.7% over the last three months and 50.8% over the last 12 months.
Glencore [JSE:GLN], which lost almost 6% on Friday, dropped another 1.98% to reach a new 52-week low of R42.00. The share is 29.2% softer on the past 12 months.
