JSE closes above 80 000 points for the first time

The JSE closed above the 80 000 mark for the first time ever on Monday (23 January), buoyed by the positive sentiment of global peers in the US, whose markets closed on a strong footing on Friday following the release of inflation data that showed a slight dip.

The inflation data has left investors anxiously awaiting the Federal Reserve policy meeting scheduled for 31 January and 1 February to decide interest rates for the biggest economy in the world.

Read: Fed set to slow rate hikes again and debate how much further to go

On Monday, the JSE All Share index closed its trading session having breached the 80 000 mark for the second time, rising 1.08% to 80 129 points.

Although the JSE breached 80 000 during its session on Friday, it relinquished some of those gains to close at 79 269.

Read: JSE breaks through 70 000 points – highest level ever [Nov 2021]

Speaking to Moneyweb, Wayne McCurrie, portfolio manager at FNB Wealth and Investments, says overall sentiment on the markets was generally positive, with the JSE reacting to stronger performance in the US following days of it being in the red.

“It’s very positive today. It’s a very strong day on the back of strength in the US markets on Friday,” says McCurrie.

Leading the gains were minerals and resources companies – KAP Industrials was up 3.61%, Sasol 2.68% and Montauk Renewables 2.39%, in line with positive performance for commodities, with sentiment boosted by the reopening of the Chinese economy.

“We’ve got commodities slightly higher over the weekend; commodities are moving stronger, and that’s been the theme for much of this month,” says Just One Lap founder and MoneywebNOW host Simon Brown, adding that is being helped by China abandoning its zero-Covid policies.

“[We’re] expecting China GDP to pick up again, certainly there’s a pickup in demand for iron ore, [and] steel manufacturing in China is picking up again.”

Read: BHP sees China opening boost as Iron Ore output hits record

Nedbank and Capitec were also among the top 10 contributors to the JSE’s performance; their share prices were up 2.65% and 2.01% respectively.

Shares in retailers Woolworths and Pepkor were up 2.59% and 2.06%

McCurrie says not much is happening in terms of company news. “Cashbuild came out with an operational update [on Monday], quite a poor update because they actually went backward in volume and their sales.”

Cashbuild reported weaker group revenue for Q2 of its 2023 financial year, with McCurrie saying the market “was anticipating” this.

“They did well during lockdowns and they’re really still coming off that peak, and obviously the state of the economy doesn’t help either.”

Read: To hike repo rate by 50bps or 25bps, that is the question

The day’s losers on Africa’s largest bourse included property companies such as Vukile (down 1.5%) as well as Fortress, Growthpoint and Redefine.

The JSE has already experienced a number of green shoots this year and has since the beginning of January risen nearly 10%. On 9 January it reached an all-time high (until now) of 78 450 points.

The rand traded 0.18% higher at R17.16 by late afternoon, while gold was down 0.32% to $1 919.62/oz and platinum traded 0.35% higher at $1 045/oz. Brent crude was 0.89% stronger at $88.36 a barrel.

Listen to Fifi Peters speaking to Gary Booysen of Rand Swiss on the JSE finishing higher on Monday: