Main stock indices near record highs

THE MAIN stock indices came within sight of record highs yesterday only to be repelled by technical factors, with data showing the market had moved into overbought territory.

This is according to their 14-day RSI, a momentum indicator monitored by analysts.

The broad all share index rose 0.7 percent at one point to 55 222.81 points, within striking distance of its record high of 55 355.12 points scaled in April 2015. It then pared gains to end 0.1 percent higher at 54 888.89 points.

The benchmark JSE Top40 came within 250 points of its historic peak in November 2015 before easing back to close 0.01 percent up at 48 569.42 points.

Among the gainers, Anglo American advanced 3.01 percent to R208.36 after it said it was resuming dividend payments six months early.

“Overall a strong set of results driven by better-than-expected cash generation. Interim dividend of 48 cents per share is a positive surprise,” Barclays said in a note.

Gold firms also rose, with the bullion index rising 1.18 percent after gold touched its highest price in six weeks yesterday, lifted by short-covering and a weak dollar.

Topping the decliners, mobile network operator MTN Group skidded 6.77 percent to R118.62 after it flagged lower-than-expected half-year headline earnings.

In the foreign exchange market, the rand weakened, ending a brief overnight rally sparked by dovish statement on interest rates from the US central bank as traders backed out and looked elsewhere in emerging markets for high yields.

At 5pm, the rand had backtracked 0.78 percent to R12.9948 against the dollar.