The JSE roared to another record high on Wednesday morning, led by resources heavyweights Anglo American and BHP Billiton, which continued to gain ground in London. Dealers expressed surprise at the JSE’s rally, given the rand’s continued strength and the fact that commodity prices had eased from their overnight highs.
By 12.06pm, the all-share index added 0,5% to 20 751,23. It earlier touched a highest level to date of 20 805,27. Resources jumped 1,23% and the platinum-mining index climbed 0,22%, but the gold-mining index weakened 0,58%. Industrials eased 0,16%. The financial and banks indices were 0,34% and 0,33% firmer respectively.
The rand was bid at R6,03 per dollar from R6,02 when the JSE closed on Tuesday, while gold was quoted at $584,15 a troy ounce from $587/oz at the JSE’s last close.
“The market is nice and strong. It looked like it was going to go lower earlier on the strong rand and commodity prices coming off yesterday’s [Tuesday’s] highs, but it seems there is no stopping it. It continues to look good,” a dealer said.
She noted that United States markets were up overnight.
Anglo American and BHP Billiton, the JSE’s two heaviest-weighted stocks, were again stronger in London and this was flowing through locally.
The dealer noted that foreign investment in the JSE was very strong in the first quarter, coming in at more than half of what was seen in the whole of 2005 — which was itself a record.
“It looks like more foreign money is flowing into the JSE,” the dealer concluded.
Foreigners bought a net R32,775-billion-worth of local shares in the first quarter of 2006 compared with R50,195-billion in calendar year 2005.
On the JSE’s resources index, Anglo American advanced 2,03% or R4,95 to R249,20 and BHP Billiton leaped 1,91% or R2,26 to R120,66.
Anglo and Billiton earlier traded at record highs of R250,35 and R121,70 respectively.
AngloPlat added R3,50 to R582.
Petrochemicals group Sasol climbed R1,20 to R235,95.
Junior miner DRDGold jumped 2,41% or 21 cents to R8,93.
AngloGold Ashanti, however, shed 1,58% or R5,15 to R320,80 and Harmony retreated 66 cents to R99,29.
On the all-share industrial index, cellular network operator MTN Group slid 1,93% or R1,19 to R60,51.
Retailer JD Group surrendered 1,43% or R1,35 to R93,35 and furniture group Steinhoff fell 1,12% or 26 cents to R22,99.
Hotel and gaming group Sun International slipped 2% or two rand to R98.
Both Steinhoff and Sun International reached record highs on Tuesday.
Transport and logistics group Imperial lost R1,50 to R170.
Retailer Woolies, however, surged 3,5% or 57 cents to R16,86, Truworths rang up 1,32% or 37 cents to R28,38 and Foschini firmed 1% or 59 cents to R59,50.
Ellerines was up 1,46% or R1,30 at R90,30, having touched a lifetime high of R90,60.
While banking group FirstRand was 1,06% or 21 cents firmer at R19,97 and Absa was up 65 cents at R115,65, Nedbank eased 80 cents to R128,20.
RMB Holdings rose 17 cents to R29,65.
Niche banking group Investec plc perked up 2,45% or R7,90 to R330.
Short-term insurer Mutual & Federal climbed 1,69% or 60 cents to R36,10 and Santam strengthened 1,19% or one rand to R85.
Health and life insurer Discovery, however, slipped 1,04% or 25 cents to R23,75. — I-Net Bridge