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Johannesburg - The JSE performed strongly on Monday morning, and for once it was not due to another strong run by the resources sector.
This sector, which moved past the 60 000 points level last week, moved mostly sideways on Monday morning while investors used the opportunity to chase bargains in the industrial sector, which was under pressure last week. Naspers was one of the front runners after Tencent made a strong showing in Hong Kong.
The prices of financial shares also moved only marginally on Monday.
By midday the All-share index and the Top 40 index on the JSE were both 0.58% higher than on Friday. The All-share index traded at 51 847 and could make another attempt to permanently breach 52 000 points, while the Top 40 index was at 46 6562.
The Industrial index was 0.97% higher, while the resources sector was virtually unchanged and only 0.04% weaker.
This moving of the chairs on Monday morning was no surprise as there is a still a lot of money available to buy shares, but instead of a strong market run investors prefer to look at pockets of value.
The JSE’s concern about valuations is in line with Wall Street, where investors are becoming increasingly nervous as the major indices reach one record after the other and they fear that company earnings will not be able to match the high valuations.
It was therefore no surprise that share prices on Wall Street fell back on Friday after disappointing results from Amazon.
The opposite is true for Asian markets, which rose sharply on Monday morning backed by growing optimism that the Chinese economy is picking up steam again.
The Hang Seng index closed at its highest level since November 2010.
Better-than-expected purchasing managers' index results, lower financing costs, loosening curbs on property policies and the coming investment connection between the Shanghai and Hong Kong stock markets were cited as factors behind the rally.
One of the top performers was Chinese internet giant Tencent, in which Naspers has a stake of 34.2%, which rose 3.2%. It won approval from China's banking regulator late on Friday to set up a bank in the Qianhai economic zone in southern China's Guangdong province with two local firms.
As always the Naspers [JSE:NPN] share price benefited from a rise in the Tencent price, and by midday Naspers traded 2.08% higher at R1 310.74. Earlier on Monday morning Naspers reached a high of R1 322.00.
Among the other big shares in the industrial sector British American Tobacco [JSE:BTI] improved 1.09% to R637.14 while Richemont [JSE:CFR] was 0.5% higher on R103. SABMiller [JSE:SAB] was 0.64% better at R598.60.
In the resources sector Anglo American [JSE:AGL] edged higher to another 52-week high of R291.86. This is 0.29% higher than the high of R291.01 set on Friday on the back of promising results.
- Fin24
This sector, which moved past the 60 000 points level last week, moved mostly sideways on Monday morning while investors used the opportunity to chase bargains in the industrial sector, which was under pressure last week. Naspers was one of the front runners after Tencent made a strong showing in Hong Kong.
The prices of financial shares also moved only marginally on Monday.
By midday the All-share index and the Top 40 index on the JSE were both 0.58% higher than on Friday. The All-share index traded at 51 847 and could make another attempt to permanently breach 52 000 points, while the Top 40 index was at 46 6562.
The Industrial index was 0.97% higher, while the resources sector was virtually unchanged and only 0.04% weaker.
This moving of the chairs on Monday morning was no surprise as there is a still a lot of money available to buy shares, but instead of a strong market run investors prefer to look at pockets of value.
The JSE’s concern about valuations is in line with Wall Street, where investors are becoming increasingly nervous as the major indices reach one record after the other and they fear that company earnings will not be able to match the high valuations.
It was therefore no surprise that share prices on Wall Street fell back on Friday after disappointing results from Amazon.
The opposite is true for Asian markets, which rose sharply on Monday morning backed by growing optimism that the Chinese economy is picking up steam again.
The Hang Seng index closed at its highest level since November 2010.
Better-than-expected purchasing managers' index results, lower financing costs, loosening curbs on property policies and the coming investment connection between the Shanghai and Hong Kong stock markets were cited as factors behind the rally.
One of the top performers was Chinese internet giant Tencent, in which Naspers has a stake of 34.2%, which rose 3.2%. It won approval from China's banking regulator late on Friday to set up a bank in the Qianhai economic zone in southern China's Guangdong province with two local firms.
As always the Naspers [JSE:NPN] share price benefited from a rise in the Tencent price, and by midday Naspers traded 2.08% higher at R1 310.74. Earlier on Monday morning Naspers reached a high of R1 322.00.
Among the other big shares in the industrial sector British American Tobacco [JSE:BTI] improved 1.09% to R637.14 while Richemont [JSE:CFR] was 0.5% higher on R103. SABMiller [JSE:SAB] was 0.64% better at R598.60.
In the resources sector Anglo American [JSE:AGL] edged higher to another 52-week high of R291.86. This is 0.29% higher than the high of R291.01 set on Friday on the back of promising results.
- Fin24
* Fin24 is part of Media24, a subsidiary of Naspers. Naspers has a 34% stake in Tencent.
