The JSE remained rampant in noon trade on Wednesday, having roared to a record high on the back of higher commodity prices and positive world markets.
By 12.11pm, the all share index was up 1,13% at 25 386,79 after reaching a record high of 25 438,49. Resources rallied 2,3%, with the gold and platinum mining indices jumping 2,06% and 2,15% respectively. Industrials climbed 0,4% and financials firmed 0,31%, but the banks index was 0,31% in the red.
The rand was bid at 7,13 per dollar from 7,10 when the JSE closed on Tuesday, while gold was quoted at $642,80 a troy ounce from $639,85/oz at the JSE’s last close.
”The market has lifted quite nicely. World markets are in positive territory, although we were mainly helped by higher commodity prices,” a dealer said.
He added that while the gold price had come off its levels seen in Asia, it was still quite high.
”Inflation numbers came in this morning, which could have been negative, but there hasn’t been much response,” the dealer commented. ”The market stuttered beforehand, but then went up again because the data was okay.”
The increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank (SARB) for its inflation target, was up 5% year-on-year (y/y) in December, unchanged from November, Statistics South Africa (Stats SA) said on Wednesday.
Headline consumer prices — the 12-month rate of change in the consumer price index (CPI) for metropolitan areas — was up 5,8% y/y in December from a 5,4% y/y increase in November.
CPIX was expected to have increased to 5,1% in December, an I-Net Bridge survey found, with food prices seen as a continuing upward risk.
On the resources index, petrochemicals group Sasol surged 3,22% or R7,46 to R239,45.
London-listed Anglo American advanced 2,1% or R7,01 to R341,50 and BHP Billiton was bolstered 2,76% or R3,61 to R134,61.
AngloGold Ashanti leaped 3,26% or R10,80 to R342,50. Gold Fields firmed 1,09% or R1,35 to R125,10 and Harmony was 1,59% or R1,53 higher at R97,60.
Impala Platinum perked up 2,55% or R4,90 to R197 and AngloPlat strengthened 1,88% or R16,60 to R901,50.
Kumba Iron Ore was up 3,46% or R3,80 to R113,50.
Among industrials, Swiss-listed luxury goods group Richemont rose 29 cents to R40,15.
Media group Naspers rallied 1,99% or R3,45 to R177,10 after trading at a record high of R180,01.
Naspers announced on Wednesday that it had acquired a 30% minority stake in Russian internet company Mail.ru for $165-million.
Caxton soared 4,17% or 70 cents to R17,50.
Mittal Steel was 1,61% or R1,65 stronger at R104,40, but pulp and paper producer Sappi shed 1,84% or R2 to R106,50.
PP Cement forged ahead 2,36% or R9,60 to R416,60.
Construction group Murray & Roberts gained 1,64% or 75 cents to a new high of R46,50 and Group Five firmed 1,52% or 75 cents to R50.
Italtile surged 4,29% or R9 to R219.
Shoprite was up 22 cents at R27,12. The retailer’s reaction was muted to news that a Brait-led consortium had increased its offer to Shoprite shareholders to R28 a share from R26.
The dealer said that the increase in the offer was not unexpected.
”Shoprite shares already started picking up last week. But it is still too cheap. Before the initial offer was announced last year, the market expected a much larger number of R30 plus,” the dealer commented. ”The revised offer is still a lot lower than the market was originally anticipating.”
There were few features on the financial front. London-listed Old Mutual inched up eight cents to R24,58 and Sanlam was 14 cents in the black at R19,57.
Banking group FirstRand fell 21 cents to R23,44 and Nedbank dipped 50 cents to R140,50, while Absa was 45 cents in the red at R135,25.
London-listed real estate group Liberty International, however, leaped 3,37% or R6,02 to R184,49. – I-Net Bridge