South Africa’s All-share index booked its highest close in its 17-year history on Friday, rising 0.65 percent as better-than-expected U.S. jobs data boosted appetite for riskier assets such as equities.
But with the market, particularly retailers, at elevated levels, some market participants warned there could be a round of sharp selling ahead.
“The market at these 35,000 levels seems to give a little bit of resistance,” said Desmond Reilly, a trader at PSG Securities in Johannesburg.
“I suppose a lot of people are a little bit nervous that we could see a pull back from these levels.”
The All-share, the widest measure of South African stock performance, added 0.65 percent to 35,244.22. It briefly touched 35,344.18, the highest in its 17-year history.
The All-share has hit a record high every day this week, powered by industrial firms such as Imperial Holdings, retailers like Woolworths and banks.
The benchmark Top-40 rose 0.54 percent to 30,981.21, its highest finish since 2008.
Data showed that U.S. non-farm payrolls rose by 163,000 last month, beating expectations for a 100,000 gain and offering hope of improvement in the world’s largest economy. It was the largest rise in payrolls in five months.
Reuters
