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Johannesburg - Calmness returned to the JSE on Thursday morning with the Greek crisis hopefully out of the way.
Share prices, however, did not respond much to the news that the Greek Parliament has accepted the European Union’s draconian conditions for another bailout package for Greece.
The major indices moved mostly sideways as the solution to the Greek crisis had mostly been discounted over the past few days, when the JSE closed decisively higher five days out of the past six days.
In the process the technical picture for most of the major indices improved considerably, as they moved back above important resistance levels and moving averages.
The European markets were much firmer on Thursday, but by midday the All-share index on the JSE was only 0.9% higher on 52 579 points, while the Top 40-index traded 0.17% stronger on 47 021 points.
The expectation is that the Top 40-index will attempt a break to back above the 65-day moving average for the first time in about four weeks. Imara SP Reid, however, said in its daily market snapshot that possible advances will be modest and controlled rather than particularly brisk.
Further upside momentum will depend largely on US earnings and the prospects for US interest rates over the next few days, now that the crisis in Greece and on the Chinese markets seem to be out of the way.
The focus returned to US interest rates after Janet Yellen, chairperson of the Federal Reserve, said earlier this week, in testimony before the US Congress that interest rates will begin to rise in 2015.
Higher US interest rates are potentially bad for emerging markets such as South Africa, as it can lead to funds flowing from these markets back to the US where the risks are perceived to be fewer.
The stronger dollar is also discounting such a possibility and commodity prices are beginning to feel the pressure. Platinum traded 1.35% lower on $1 008 per ounce, while the gold price dropped 0.35% to $1 144.
The gold index lost 3.23% Thursday morning, but resource shares managed to stay just in the black and traded only 0.15% higher. BHP Billiton [JSE:BIL] traded 0.77% higher on R241.36 and Anglo American [JSE:AGL] was 0.57% stronger on R169.97.
The weaker platinum price put an end to the strong technical rebound in the prices of platinum shares with Anglo American Platinum [JSE:AMS] 0.56% up on R265.25. Imapala Platinum [JSE:IMP] traded 2.59% lower on R50.36 and the share price is now just above the 52-week low of R49.90 reached earlier in the week.
In the industrial sector, which gained only 0.17%, British American Tobacco [JSE:BTI] reached a new 52-week high of R712.55. The new high was 0.85% higher than the previous day’s close. The previous high was R706.46. The share price gained 5.73% over the past seven days after it was upgraded by analysts in London.
Mondi plc [JSE:MNP] gained more than 11% over the past seven days and gained another 0.62% to reach a new 52-week high of R292.58.
Among the heavyweights Richemont [JSE:CFR] gained 1.28% to R103.30, in line with overseas markets, while in early afternoon trade SABMiller [JSE:SAB] was 0.84% stronger on R679.85. Naspers [JSE:NPN], however, lost 1.68% to R1 850.32.
