THE JSE continued its upwards surge in the Thursday session, closing at a fresh record high, boosted by mining and industrial counters, amidst positive global market sentiment due to solid manufacturing data out of the world’s two largest economies, the US and China. Hope that a deal might be agreed upon regarding a Greek bailout added to the buoyant sentiment.
China’s preliminary purchasing managers index jumped to 50.3 index points in November, which is regarded as being in expansionary territory.
Locally, gold miners and resources were the most supportive of the JSE, lifting 1.68% and 1.24% respectively.
At 5pm, the all-share index closed up 0.92% at 37,844.55 points, with the top 40 index gaining 1.02% to 33,613.24 points.
Leading European shares were higher in the afternoon, with London’s FTSE 100 gaining 0.60% by 4.49pm local time. US markets were closed due to the Thanksgiving holiday.
"Given that China is the world’s largest consumer of gold this year, it is no surprise to see the South African gold mining index leading the way on the JSE. Locally, all focus was on the interest rate decision out this afternoon, and as expected there was no rate cut. Despite weakening domestic growth, the October CPI (Consumer Price Index) numbers and the recent weakening of the rand put paid to any chance of a rate cut. As a result, the announcement had little effect on the JSE," said Andrew Dittberner, senior investment manager at Cannon Asset Managers.
Big movers on the JSE included SABMiller, which traded significantly higher on another solid set of results, as evidenced by its earnings growing comfortably ahead of consensus expectations. SABMiller closed 5.83% higher at an all-time high of R395.87.
Other big movers were largely dominated by resource companies in general, and precious metal miners in particular due to the upbeat data prints out of the US and China. These included Harmony Gold 2.59% firmer at R71.20, Gold Fields 1.69% higher at R106.21 and Anglo American Platinum 1.95% firmer at R390.
ArcelorMittal recovered 6.80% to R30.
In the construction sector Murray and Roberts gained 2.44% to R22.23, while retailer The Foschini Group was off 1.39% to R131.15.