JSE Stocks Maintain Record High, Analysts Predict Shift

JSE Stocks Maintain Record High, Analysts Predict Shift

Thanks to stock bumps from supermarket chain Pick N Pay and AngloGold Ashanti, the Johannesburg Stock Exchange (JSE)  has maintained it’s streak of increased traded shares, Independent Online reported.

Shares for Pick N Play and mining group BHP Billiton rose eight percent and four percent, respectively. According to Independent Online, the spike in BHP Billiton share interest sprouted from an announcement which stated a rise in 2014 iron ore production in addition to impressive quarterly petroleum output.

Rising 1.12 percent, the JSE surpassed 40,000 in the top-40 index closing at 40,544.23 — the highest in 18 years, the report noted. The exchange also hit 96 percent on the All-Share index reaching 45,357.81.

Still, analysts believe that corrections will be made leveling the value of share jumps, which Christie Viljoen, an economist at NKC Independent Economists says will reveal continued positive JSE strides as unpredictable.

“The fundamentals are not there, maybe in another country but not in South Africa, because the outlook for the next 12 months is not good. There is weak economic growth and no possibility for another interest rate cut,” Viljoen said.

“It’s getting ridiculous now. It can’t go on forever. Most people thought it would have stopped already,” he said in response to the country’s meager prediction of two percent economic growth by the South African Reserve Bank.

The Relative Strength Index (RSI) was reported to have shown signs of overbuying, a technical factor that may lower JSE chart standings, according to Independent Online.