JSE slightly higher as US markets hit record territory again

TIMESLIVE

The JSE might look glitzy but is littered with pitfalls for would-be investors who don’t know what they’re doing. 
Image: Katherine Muick-Mere

The JSE all share opened slightly higher on Tuesday as the market followed upbeat performances from US markets on Monday.

The Dow Jones industrial average closed 0.32% firmer‚ as steel and energy shares recorded gains. All three major indices‚ including the S&P 500 and the Nasdaq‚ posted record closes for the second time in a week.

Asian markets were weaker on Tuesday morning with the Nikkei 225 down 1.62% as the stronger yen affected export companies negatively. The Hang Seng fell 0.13%.

At 9.35am the all share was up 0.13% at 52‚464.30 and the blue-chip top 40 rose 0.17%. The platinum index added 1.75% and resources climbed 0.31%. Industrials were 0.24% higher. The gold index dropped 1.17% and property was 0.46% lower.

The Brent crude price continued on its recent run‚ gaining 0.27% to $48.37 a barrel.

Momentum SP Reid analysts said in an early morning note that US indices were relatively overbought in the short term‚ which suggested there could be some marginal profit-taking and technical weakness when the market opened on Tuesday.

The analysts said global markets were reacting positively to central bank policy action and investors were expecting a lower yield environment to remain in place in the lead-up to the US presidential election.

Early morning focus was on miners‚ with BHP Billiton reporting an annual headline loss per share of 16.3 US cents from a headline earnings per share of 128.7c per share in 2015. BHP Billiton was 0.81% higher at R179.52.

Anglo American rose 1.15% to R151.73.

Kumba Iron Ore firmed 3.75% to R141.90.

AngloGold Ashanti shed 1.74% to R278.50.

Among platinum stocks‚ Impala Platinum lifted 2.52% to R66.40.

Construction group Basil Read Holdings rocketed 8.97% to R3.16 after announcing in a trading statement that interim HEPS to end-June were expected to be between 18.5% and 37.4% higher.

Redefine Properties dropped 1.18% to R11.70. Hypro added 0.25% to R141.35.

Sappi shed 1.07% to R67.27.

Educational group Curro Holdings was down 0.45% to R42.50. It reported interim HEPS to end-June rose 51% from 14.5c to 22c.

City Lodge dropped 0.96% to R162.55 after releasing results earlier in the week.