The JSE rallied to a record high on Wednesday morning as the aggressive buying that started on Tuesday continued. The strength came against the backdrop of positive global markets.
By 11.57am, the all-share index was up 0,48% at 15 921,15 after earlier touching a highest-to-date 15 968,41. Industrials and financials firmed 0,71% and 0,85% respectively, while the banks index was 1,23% better. The platinum-mining index gained 0,74%. The resources and gold-mining indices were flat.
The rand was bid at R6,32 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $444,40 a troy ounce from $444,25/oz at the JSE’s last close.
Trade was brisk, with about R2-billion-worth of shares changing hands in the morning session.
“The market is through the roof. We are seeing very aggressive buying across the board,” a dealer said. “Yesterday [Tuesday], we saw quite a lot of baskets going through and this is continuing today. On top of that, we’ve got buying from local institutions and overseas and stocks are being pushed to ridiculous levels.”
The dealer said that the basket-buying was related to next Thursday’s futures close-out.
Stronger world markets were also assisting the JSE, he said.
“Everything is just in a big bullish phase,” he concluded.
On the resources index, global resources group BHP Billiton was 50 cents better at R95,50.
Gold miner Harmony gained 1,96% or one rand to R51,99, but AngloGold Ashanti shed R1,40 to R229,10.
AngloPlat advanced 1,7% or R5,49 to R329. While Impala was off two rand at R683, it earlier traded at a best level since May 2002 of R694.
Petrochemicals group Sasol slipped 1,37% or three rand to R215,50 due to an easing in the oil price.
Counters to advance on the all-share industrial index included Swiss-listed luxury-goods group Richemont, which rose 24 cents to R25,59. Richemont’s intraday high of R25,75 was last seen in April 2002.
Cellular network operator MTN Group climbed 1,05% or 51 cents to R49,10 and Telkom ticked up 60 cents to R128,10.
Mittal Steel strengthened 1,96% or one rand to R52 and pulp and paper producer Sappi firmed 1,66% or R1,20 to R73,40.
Services group Bidvest, which earlier traded at a record high of R89,98, was 1,36% or R1,20 in the black at R89,70.
Furniture group Steinhoff was 1,96% or 35 cents stronger at R18,25 and transport and logistics group Imperial was up 66 cents at R123,66. Steinhoff and Imperial earlier reached all-time highs of R19 and R126 respectively.
London-listed brewer SABMiller, however, eased 40 cents to R117,60.
Packaging group Nampak surrendered 1,9% or 30 cents to R15,50.
On the financial front, Sanlam strengthened 1,12% or 15 cents to R13,60, having traded at a best-to-date R13,76 early in the session.
Banking group FirstRand roared ahead 2,23% or 36 cents to R16,52, Standard Bank climbed 21 cents to R71,91, Absa added 2,11% or R2,05 to R99,30 and Nedbank notched up 1,03% or 95 cents to R93,25. Nedbank’s intraday high of R94 was its strongest since July 2003.
Investment company VenFin surged 3,61% or R1,17 to R33,61 and Remgro rallied 1,55% or R1,70 to R111,40.
After the close on Tuesday, VenFin reported a 25,4% increase in headline earnings for the year ended June to 189,8 cents, from 151,4 cents previously.
A dividend of 50 cents per share was declared, compared with 32,5 cents previously.
London-listed financial services group Old Mutual, however, was down eight cents at R16,57.
While investment bank Investec Limited was R1,21 in the red at R230, it earlier traded at a best level since July 2001 of R240. — I-Net Bridge