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Johannesburg - Uncertainty on world markets also put a damper on the JSE on Monday morning, and the major indices did not move much during early trade.
The All-share index, which closed lower on Friday, was slightly higher early on Monday morning but marginally down by midday, with the intraday graph pointing downwards.
World markets were lower as fears over Greece returned, while the markets in Shanghai and Hong Kong tumbled after Chinese authorities unveiled restrictions on dealers borrowing cash to trade shares.
READ: Asian stocks hit by Greece fears, China trading
It was these dealers who pushed the Asian markets higher with a spinoff for local investors, when Naspers [JSE:NPN] lifted sharply in response to a rise in the share price of Tencent, the Chinese internet giant of which Naspers owns 34%.
By midday the share price was only 0.33% softer at R1 828.08. The share is now 4.5% lower over the past seven days.
By midday the All-share index was only 0.01% lower at 53 729 points and the Top 40-index only 0.01% firmer at 47 498. Of the major indices, the Financial index lost 0.42% and the Industrial index was 0.07% lower, but some bargain-hunting helped the Resources sector gain 1.06% by midday. At that stage the Gold index was also 1.53% higher.
The resources sector was also supported by news at the weekend that the Chinese central bank had reduced the amount of cash which banks must keep in reserve in a bid to boost loan activity. It is the second reduction this year. Any effort to lift the Chinese economy is advantageous for commodity prices and resources companies.
The Asian markets did not respond to the news, as the possibility has already been discounted. Asian investors were more concerned with tighter rules on margin trading - where investors buy shares mostly with borrowed money – which were announced on Friday. The recent rally was mostly propelled by margin trading.
World markets were also concerned about the fact that there is no breakthrough in sight in the tense talks between Greece and its international creditors. Greece is seeking the release of another €7.2bn in bailout funds from the European Union.
At the weekend, both European Central Bank (ECB) chief Mario Draghi and International Monetary Fund MD Christine Lagarde warned at IMF-World Bank spring meetings in Washington that Greece has not provided enough information about how its economic and reform plans will impact its finances.
The two biggest resources shares on the JSE were both higher. BHP Billiton [JSE:BIL] gained 1.57% to R265.38 and Anglo American [JSE:AGL] traded 2.69% higher at R187.64. Both shares were recently at 52-week lows.
Sasol [JSE:SOL], which gained more than 12% over the last seven days on the back of a higher oil price, was the victim of profit taking on Monday morning and lost 0.321% to R466.03.
In the financial sector, FirstRand [JSE:FSR] gained 0.81% to R57.36 and is now just below the 52-week high of R52.65. Standard Bank [JSE:SBK] dropped 1.81% to R171.83. Capitec [JSE:CPI], which lost about 5% last week when it started trading ex-dividend, recovered strongly on Monday morning and gained 2.28% to R540.
Among the shares with business interests in Africa which could be negatively affected by a backlash to xenophobic attacks in South Africa, MTN [JSE:MTN] lost 1.34% to R225.24. Shoprite [JSE:SHP] traded 0.62% weaker at R165.46.
MTN’s biggest rival Vodacom [JSE:VOD] reached another 52-week high on Monday morning, adding 0.38% or 54c to Friday’s high to trade at R143.54.
