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Johannesburg - Commodity shares tried to push the JSE higher on Wednesday morning for the third consecutive day on the back of the weaker rand and indications of stronger growth in the United States and China.
But the gains were modest and after strengthening initially, all the major indices moved sideways in a very narrow band on the intraday graph. The All-share and the Top 40 indices were only marginally higher by midday.
The resources index was only 0.27% higher on 56 092 points after climbing initially with about 0.8%. The All-share index, which traded in a narrow band all morning and was briefly above the 50 000-level, traded on 49 976 points, which is only 0.08% higher than Tuesday's close. The Top 40-index was marginally (0.09%) lower on 45 106 points.
The market lacked new direction, particularly after the rand showed signs of steadying against the dollar after three consecutive days of losses. By midday, the currency was 0.77% stronger against the dollar at R10.76 after breaching R10.80 yesterday on a 10-week low pressured by negative global risk sentiment and a slew of disappointing local data.
Dealers said the rand selloff looked overdone, but did not rule out further losses if domestic fundamentals remained weak.
The markets are waiting for Thursday’s meeting of the European central bank, which is expected to unveil new measures to stave off deflation in the eurozone and promote economic growth.
The euro eased on these expectations and the rand strengthened with 0.79% to R14.641/€.
Any form of further easing by the ECB will be positive for equities in Europe and South Africa.
In the Resources sector Anglo American [JSE:AGL] was only 0.22% higher by midday on R262.13 after earlier trading more than 400c higher on R266.30. Anglo has gained 17.9% over the last year, but is only 1.7% higher for the last six months.
There is still some activity in the platinum sector while all role players are hopeful that the government’s efforts to mediate a settlement in the crippling strike in the Rustenburg area will be successful.
Anglo American Platinum [JSE:AMS] traded 0.08% higher on R473.50 by midday after the share reached a high of R480 in earlier trade. Amplat’s share price is still 53.4% higher than a year ago and in the last six months, when the platinum mines in the Rustenburg area lost more than R20bn in income due to the strike, the share price still improved with 25.8% and is currently trading at a P/E ratio of 85.16.
Lonmin [JSE:LON] was 0.91% higher on R46.80. This share was hit more severely by the strike and lost -10.8% of its value in the last six months and is now only 9.1% higher for the year.
Some of the high flyers of the past few days are still reaching new 52-week highs, including Sappi [JSE:SAP] which gained another 1.38% to R38.82. MediClinic International [JSE:MDC] is again on the record trail after improving with 1.56% to R84.59.
A newcomer to the winner’s list is Aspen [JSE:APN], which reached a 52-week high after gaining 2.38% to R287. The share is currently trading at a PE of 34.12% after gaining 37.1% over the last year.
Investors are still discounting the expected improvement in Telkom [JSE:TKG] results, and the share rose another 2.01% to R41.62 and is now 178% higher than a year ago.
But the gains were modest and after strengthening initially, all the major indices moved sideways in a very narrow band on the intraday graph. The All-share and the Top 40 indices were only marginally higher by midday.
The resources index was only 0.27% higher on 56 092 points after climbing initially with about 0.8%. The All-share index, which traded in a narrow band all morning and was briefly above the 50 000-level, traded on 49 976 points, which is only 0.08% higher than Tuesday's close. The Top 40-index was marginally (0.09%) lower on 45 106 points.
The market lacked new direction, particularly after the rand showed signs of steadying against the dollar after three consecutive days of losses. By midday, the currency was 0.77% stronger against the dollar at R10.76 after breaching R10.80 yesterday on a 10-week low pressured by negative global risk sentiment and a slew of disappointing local data.
Dealers said the rand selloff looked overdone, but did not rule out further losses if domestic fundamentals remained weak.
The markets are waiting for Thursday’s meeting of the European central bank, which is expected to unveil new measures to stave off deflation in the eurozone and promote economic growth.
The euro eased on these expectations and the rand strengthened with 0.79% to R14.641/€.
Any form of further easing by the ECB will be positive for equities in Europe and South Africa.
In the Resources sector Anglo American [JSE:AGL] was only 0.22% higher by midday on R262.13 after earlier trading more than 400c higher on R266.30. Anglo has gained 17.9% over the last year, but is only 1.7% higher for the last six months.
There is still some activity in the platinum sector while all role players are hopeful that the government’s efforts to mediate a settlement in the crippling strike in the Rustenburg area will be successful.
Anglo American Platinum [JSE:AMS] traded 0.08% higher on R473.50 by midday after the share reached a high of R480 in earlier trade. Amplat’s share price is still 53.4% higher than a year ago and in the last six months, when the platinum mines in the Rustenburg area lost more than R20bn in income due to the strike, the share price still improved with 25.8% and is currently trading at a P/E ratio of 85.16.
Lonmin [JSE:LON] was 0.91% higher on R46.80. This share was hit more severely by the strike and lost -10.8% of its value in the last six months and is now only 9.1% higher for the year.
Some of the high flyers of the past few days are still reaching new 52-week highs, including Sappi [JSE:SAP] which gained another 1.38% to R38.82. MediClinic International [JSE:MDC] is again on the record trail after improving with 1.56% to R84.59.
A newcomer to the winner’s list is Aspen [JSE:APN], which reached a 52-week high after gaining 2.38% to R287. The share is currently trading at a PE of 34.12% after gaining 37.1% over the last year.
Investors are still discounting the expected improvement in Telkom [JSE:TKG] results, and the share rose another 2.01% to R41.62 and is now 178% higher than a year ago.
