No stopping the JSE juggernaut as share price records tumble
THE JSE all-share index climbed by 4.8% to reach a record high of 7 828 points in a week of big volumes and rising prices across the board.
Even the gold price played ball: it jumped a good $6/oz to $306/oz on Friday. While the investment funds are probably not ready to jump in boots and all, the sentiment has definitely turned more favourable.
If gold can break $310/oz, the ground up to $320 is something of a no-man's land where there are few positions: gold could move up quickly but it is too soon to get overexcited about a breakout.
Nevertheless, the all-gold index picked up 17% to 883 points: Anglogold added 12% to R225, Gold Fields 28% to R31, Avgold 10% to 378c and Randgold 22% to 710c.
So-called growth stocks continued to improve, but the blue chips also began to regain a place in the sun as they were offering value. Among these was Coronation, which added R11 to R110 and barely a seller in sight: market talk is that something very big is afoot in the camp. Cash-rich African Harvest, which a week ago entered a partnership with Computer Configuration Holdings to establish a financial outsourcing business, jumped from R17.90 to R24.50. This helped owner SA Empowerment Fund to add 35c to 165c.
Specialised Outsourcing, which listed only six months ago after a private placement at 120c, rose by two thirds to R45 after good results and prospects. Forbes was also active, up 130c to R13.50.
The streamlining announcement in the BOE group was interpreted as not adding much value: BOE rose but NBS and Orion slipped. Fedsure shed 320c to R86 ahead of paying Sanlam R27 a share for 30% of SA Druggists - well above the market price.
Basket-trading was once again a feature, including counters such as Richemont, Rembrandt and Bidvest, which rose to R58 on a cautionary. SA Breweries' steps along the unbundling path seem welcome: it picked up 10% to R166 before easing 140c.
Joke of the week was Spicer Mitchell's R77-million acquisition of software house Zervos. The conclusion that some parties knew ahead of Friday's announcement is inescapable. Spicer is running at a loss, yet the share price has climbed from 10c mid-February to 135c on Friday, closing at 127c.
The electronics sector was particularly active: Didata, PQ Holdings and IBM all climbing, the last on the appointment of yet another new CE. No fewer than six recently listed IT companies issued cautionaries or announced deals this week. There was big trade in Softline, and Control rose 40c to 155c.
Corpgro, which entertained Johannesburgers to a mega-bash midweek, is to unbundle part of its holding in cash-generator Corporate Communications. Good results also helped the share to add 75c to 485c.
After a cautionary, HCI put on 45% to 900c: it has a share in newly licensed broadcaster Midi.
Julie Walker Top of page