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Johannesburg - The JSE continued weaker just before noon on Friday‚ in line with weaker world markets‚ with banks and gold miners putting the main strain on the bourse. Market participants now await the US third quarter GDP number - out this afternoon - which should give further market direction.
At 11:50‚ the JSE All Share [JSE:J203] index was down 0.46% at 36 823.70 points‚ with the Top 40 - (Tradeable) [JSE:J200] dipping 0.48% to 32 648.60. Banks lost 1.06%‚ gold shares were down 1.01% and financials gave up 0.96%..
The main mover on the JSE today is Anglo American rallying almost 3% during the morning after news that its CEO‚ Cynthia Carroll‚ had resigned. At 11:50‚ the stock was trading 2.63% higher at R268.90.
“The JSE all-share index is witnessing a marginal decline‚ taking its lead from weaker Asian markets. There is no obvious catalyst in play‚ but it would appear that the after hours earnings disappointments from Apple and Amazon in the US on Thursday‚ is causing negative sentiment around the globe. The market could also be experiencing a bit of apprehension ahead of the all-important advance GDP figures due later from the US. Equity losses on the JSE are broad based today‚ with banks under the most pressure. The sudden resignation of Anglo American CEO Cynthia Carroll has resulted in a positive move in Anglo’s share price‚ which is bucking the general market trend. This gain comes despite a weaker resource sector‚ which is tracking lower dollar-denominated metal prices‚” said Shaun Murison‚ market analyst at IG SA.
“While yesterday's medium-term budget policy statement (MTBPS) turned out to be much less exciting than expected‚ the conservative stance adopted by the government in the management of its finances helped to calm investor fears of a downward spiral in SA’s sovereign prospects‚” Rand Merchant Bank said in a note.
“This comes after the recent spate of negative domestic developments‚ which included a downgrade from ratings agencies Moody’s and S&P‚” the bank said.
“The global backdrop picked up somewhat as data out of the US again surprised on the upside. This includes a better than expected durable goods report — up 9.9% in September — which allayed fears that US businesses may pull back on expansion plans due to disappointing profit growth. The UK statistical office also announced that the UK economy grew at a better than expected 1% quarter on quarter‚ implying that it has lifted out of recession in the third quarter.”
Leading European share markets were weaker‚ with London’s FTSE 100 having given up 0.56% at 11:35 local time. In Asia‚ Hong Kong’s Hang Seng Index closed 1.21% softer.
Among individual shares on the JSE‚ Anglo American was up 2.63% at R268.90‚ while BHP Billiton was down 1.10% at R277.18 and Lonmin shed 2.94% to R67.90.
Among gold shares Gold Fields gave back 1.38% to R103.60 and Harmony dipped 1.6% to R70.56‚ while Gold One International gained 4.2% to R3.47.
Among banking counters Standard Bank dipped 1.15% to R105.77 and FirstRand was down 1.24% at R27.77.
In the telecommunication sector Vodacom added 1.14% to R106.46‚ while Blue Label Telecoms shed 1.29% to R6.91.
