/ 12 September 2005

JSE tests 16 000

The JSE touched fresh highs this week amid a frenzy of activity in the futures market, an unexpected, slight dip in the oil price and good retail figures.

These pushed the All Share Index to test, but not quite touch, the magical 16 000 points level.

On Wednesday, the index reached a record 15 968 before closing at 15 939 points.

The surge in equities was attributed, in part, to the oil price dipping below $66. Ferdi Heynecke of Afrofocus Securities attributed the fall to a decision by some countries to dip into reserves to ease shortages caused by Hurricane Katrina.

Locally, intense futures-related buying and the release of good retail figures triggered a rally in a broad range of stocks.

Next Thursday marks the futures close-out, when all futures contracts fall due. This leads to increased futures and options-related trade as traders either take profit on their options or revalue their futures position, and speculators exploit short-term profit opportunities. The Top 40 Index is up 27%.

At lunchtime on Thursday, the All Share Index stood at 15 871,62. The rand was trading at R6,33 to the dollar, while Brent Crude traded for $63,45 a barrel.