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Johannesburg - The JSE made an early start out of the starting blocks on Wednesday morning in response to a strong surge on world markets. By mid-morning the market was solidly in the black.
Bargain
hunters are looking for buying opportunities after the All-share index lost
almost 3% over the previous seven days. Poor growth figures for the South
African economy on Tuesday also put a damper on buying activity the previous
day.
The rand
is still relatively strong, trading at R13.66 to the dollar, a negative
for the prices of the big dual-listed shares which make up more than half of
the JSE’s market capitalisation. These big shares were however supported by a
strong start on the London Stock Exchange, where most of them are listed.
At mid-morning the All-share index was 1.07% higher at 49 459 points, while the Top
40 index traded 1.14% firmer. The All-share index is still trading at levels last seen in February.
At mid-morning the Financial index was 1.16% higher and the Industrial
index, which includes most of the dual-listed shares, traded 1.12% stronger.
The resources index was 1.17% up supported
by strong commodity prices, particularly copper which treaded water on
Wednesday but is still buoyed by expectations that manufacturing activity will
pick up by next year. Rio Tinto said on Wednesday the copper market is expected
to go into a deficit by 2020.
Anglo American [JSE:AGL] gained 2.52% to trade at R213.05 and BHP Billiton [JSE:BIL] was 2.34% stronger at R231.28. Glencore [JSE:GLN] , the world’s biggest copper producer and trader, gained 2.02% to R50.50, close to a 52-week high.
Exxaro [JSE:EXX], which lost more than 11% of its value
over the past week on news that Anglo American will sell its share in the
iron ore and coal producer, recovered somewhat and traded 1.60% up at
R89.92. In earlier trade the share was as high as R90.82.
Impala Platinum [JSE:IMP], which lost more 33.5% over the previous 30
days, also recovered and was 2.86% higher at R43.20.
Most of the attention on the JSE was on Steinhoff
[JSE:SHF], which announced strong trading results for the third quarter. It was
by far the busiest share on the JSE with more than 3.5 million shares trading
for R233m. The share price, which lost more than 14% over the previous 30 days and more than 27% over the previous three months, at mid-morning
was already 4.99% stronger at R63.83.
The group’s total revenue for the third quarter increased
by 12.1% to €3.4bn and adjusted for currency fluctuations revenue in
constant currency increased 20.3%. About 93% of the group is generated
by retail operations, of which 61% is earned in Europe and the United Kingdom and
32% in Africa, mostly South Africa.
Naspers [JSE:NPN] traded 0.73% higher at R1 957.00. The
last time the stock was below R2 000 was in May this year; it is more than 17% down on a month ago.
Some of the best known shares on the JSE, which traded at 52-week highs, are still in demand. Imperial [JSE:IMP] was 1.77% stronger on a new 52-week high of R177.07. Barloworld [JSE:BWA] was on a new 52-week high of R112.00 in early
trade but lost momentum, and at mid-morning
was 0.68% softer at R110.63. Telkom [JSE:TKG] gained 1.59% to a new high
of R70.99.
Technology group Altron [JSE:AEL] shed 2.41% to R8.51, after surging 16.42% to a 52-week high of R8.72 on Tuesday. The group has reached an in-principle agreement with a new strategic partner, Value Capital Partners, which will see the company become independently managed after 51 years of Venter family control.
