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JSE hits record high amid broad-based gains‚ led by Naspers

Maarten Mittner

Broad-based multinational internet and media group, Naspers.
Broad-based multinational internet and media group, Naspers.

The JSE all share opened higher on Wednesday‚ crossing the 59‚000-point level in convincing fashion‚ on surging Asian markets and after the Dow closed up on Tuesday as the market was driven higher by tech stocks.

Gains on the JSE were led by Naspers‚ rocketing past R3‚500 for the first time after Chinese internet company Tencent‚ of which Naspers owns about a third‚ rose 1.43% in Hong Kong trade.

The Dow ended Tuesday 0.12% higher at 23‚377.24 points‚ partly driven by a strong performance from Apple‚ which closed more than 2% up. The Dow ended October in positive territory for the seventh consecutive month.

The Nikkei jumped 1.86% to a 21-year high‚ boosted by a strong performance from Sony. This followed on the decision by the Bank of Japan (BoJ) to continue with its monetary stimulus policy.

Chinese shares gained in response‚ with the Hang Seng up 0.85%.

The positive global sentiment supported widespread gains on the JSE‚ with locally focused sectors such as retailers‚ banks and property cashing in. A steady rand — trading at R14.12/$ — also helped.

Commodities were up‚ as oil prices extended gains above $60 a barrel in the longest winning streak in three months as data showed both crude and petrol inventories declined last week.

Platinum rose 1.02% to $927.22/oz and gold 0.38% to $1‚275.54/oz. Brent crude added 0.31% to $61.22 a barrel.

On Tuesday‚ upbeat economic data from the eurozone supported global market sentiment.

Markets were focused on the US Federal Reserve’s two-day policy meeting for indications on future monetary tightening‚ FxPro analysts said.

The Fed had raised rates twice since January and currently forecasts one more hike by the end of the year as part of a tightening cycle that began in late 2015. The Fed was expected to leave interest rates unchanged at this week’s meeting‚ but the markets would be looking for any new indications that the Fed would‚ as expected‚ increase rates in December‚ FxPro said.

At 9.31am the all share was 0.74% higher at 59‚414.60 points and the blue-chip top 40 was up 0.89%. The gold index added 1.95%‚ resources 1.34%‚ platinum 0.72%‚ industrials 0.64% and banks 0.45%.

Among the diversified global miners‚ Anglo American was up 1.47% to R269 and BHP 1.35% to R258.71.

Sasol rose 1.26% to R418.88.

British American Tobacco rose 1.1% to R920.

Among gold stocks‚ AngloGold Ashanti was up 2.03% to R132.97. Sibanye rose 2.46% to R18.76. The group said on Wednesday that nearly 7‚000 jobs had been cut at Sibanye-Stillwater’s Cooke operation and another 1‚640 were in danger at Beatrix West.

Impala Platinum rose 1.22% to R39.70.

Among banks‚ FirstRand rose 1.07% to R51.80 and Barclays Africa 0.42% to R140.73. Nedbank was up 0.30% to R207.99 after Old Mutual announced that its shareholding in Nedbank would be an agreed 19.9%.

Old Mutual rose 0.98% to R36.01.

Growthpoint added 1.1% to R24.78‚ among property stocks‚ while Nepi Rockcastle jumped 0.82% to a record R199.28.

Naspers was up 1.34% to R3‚491.

Mediclinic recovered 0.99% to R110.02.

Sappi gained 1% to R95.65.

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