PSG stays in the lead
The rel at i vely young PSG Group* seems to be making histor y as it has been t he strongest share on the JSE for some time now, measured in terms of the percentage of its price above its 200-day exponential moving average (EA). The share price rose by more than 2 100% over t he past 10 years (excluding dividends).
Its 28.3% interest in Capitec has probably once again played a major role in this increase, as the latter also spiked significantly after it experienced a correction of 29% since April. Pioneer Foods, in which PSG Group is also a major shareholder, is still experiencing buying pressure. This share also reached a new high, which has resulted in it maintaining its position near the top of the list of strongest shares. There is speculation that corporate action has boosted its share price.
The excellent results that Mondi recently produced also pushed its share price to a new high. It could probably be regarded as the top share in a struggling industrial sector.
Those investors who made use of the recent decline in the property sector by investing in the Resilient Property Income Fund should feel satisf ied. The share has recovered remarkably and recently reached a new high. It has a winning recipe in that it focuses on dominant regional retail centres with a minimum of three anchor tenants. It maintains good and successful relations with especially national retailers. Hyprop is another important property group that also seems to be on its way to a new high with a price/volume trend* that has turned positive since the recent correction. (Price/volume trend graphs are calculated by multiplying the weekly volume with the percentage change in the price. This often gives a handy early indication of accumulation or distribution.)
Among the poor performers it is still the resources shares that are battling most. They have as fellow travellers Aveng and Murray & Roberts, t wo large players whose battered share prices ref lect the tribulations of the building and construction sector. It is no secret that long-term value investors have been sniffing around among cyclical shares that have reached their lowest levels in years. It is also noteworthy that directors of, among others, Impala Platinum, have been buying the company’s shares, which are not only trading at below book value, but which have assets that are in positive territory from a cost point of view, despite the weak platinum market.
Of the shares that recently broke t hrough t hei r 2 0 0 - day avera ge, Truworths, Vukile and Reunert look the most interesting. With regard to the latter, there has been buying pressure as measured by its price/volume trend.
* The author owns shares in PSG.
KUMBA IRON ORE
% BELOW 200-DAY EA
-20.5 STRONGEST STOCKS
*Based on the 100 largest market capitalisations BREAKING THROUGH
% ABOVE 200-DAY EA