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Johannesburg - Hopes of a late rally on the JSE to end the year on a high note disappeared quickly on Tuesday morning as a big part of the previous day’s gains were lost shortly after the opening.
It must be said however that all the indices moved sideways for most of the day in thin holiday trade, after the sharp initial drop.
It now seems that the All-share index will probably end the year on Wednesday not much more than a percentage point higher than the level at which it started 2014 in January.
As usual, a further drop in price of Brent contributed to the negative sentiment on Tuesday morning, while risk appetite was also hit by uncertainty surrounding Greece, which is heading to a January election the leftist anti-bailout Syriza party is tipped to win.
By midday the All-share index was again below 50 000 points and traded 0.54% lower at 49 981 points, while the Top 40 index lost 0.61% to 44 207 points.
All the other major indices were also lower, with the Resources index 1.56% softer after shares such as Sasol [JSE:SOL] and BHP Billiton [JSE:BIL], whose fortunes are closely linked to the oil price, traded decisively lower.
The price of Brent crude oil dropped to another five-and-a-half year low of $57.35 on renewed fears of a continuing glut in oil production. It pulled the prices of petroleum stocks worldwide decisively lower.
Sasol, whose income from fuel is directly linked to the oil price, traded 2.23% weaker at R428.00. BHP Billiton, which has oil and gas interests all over the world, gave up 1.43% to R250.76.
Other commodity producers suffered the same fate and the volatile share price of Kumba Iron Ore [JSE:KIO] gave up 1.94% to R239.81. Its holding company, Anglo American [JSE:AGL], lost 1.05% to R271.62.
African Rainbow Minerals [JSE:ARI], the empowerment company with extended interests in iron ore and manganese, also dropped 2.64% and traded at only R120.12 compared to a high of R236.50 reached in February this year.
Sentiment on world markets, and particularly European markets, was certainly dampened after Greek lawmakers rejected the government's candidate for president, leaving Greece facing a snap election that could derail its bailout programme.
Polls suggest such an election may be won by the left-wing Syriza party that has expressed opposition to Greece's bailout programme.
Analysts said the Greek result could affect the European Central Bank's plans for new economic stimulus measures to tackle the economic weakness afflicting Europe, such as quantitative easing.
That news put an end to the rally by banking shares on Monday, when FirstRand [JSE:FSR] and Nedbank [JSE:NED] both reached new 52-week highs. FirstRand lost 0.59% on Tuesday morning to R50.70 and Nedbank traded 0.88% softer at R248.94.
One share that moved against the trend is Naspers [JSE:NPN], which gained 0.72% to R1 540.24 - now close to the high of R1 555.00 set last month.
Investors are still trying to attract value from Telkom [JSE:TKG], despite the fact that the share has gained 147.1% over the past year. On Tuesday it traded another 2.17% higher at R70.50 after reaching a low of only R28 in January this year. Telkom is now trading at a price to earnings ratio of 16.65.
It must be said however that all the indices moved sideways for most of the day in thin holiday trade, after the sharp initial drop.
It now seems that the All-share index will probably end the year on Wednesday not much more than a percentage point higher than the level at which it started 2014 in January.
As usual, a further drop in price of Brent contributed to the negative sentiment on Tuesday morning, while risk appetite was also hit by uncertainty surrounding Greece, which is heading to a January election the leftist anti-bailout Syriza party is tipped to win.
By midday the All-share index was again below 50 000 points and traded 0.54% lower at 49 981 points, while the Top 40 index lost 0.61% to 44 207 points.
All the other major indices were also lower, with the Resources index 1.56% softer after shares such as Sasol [JSE:SOL] and BHP Billiton [JSE:BIL], whose fortunes are closely linked to the oil price, traded decisively lower.
The price of Brent crude oil dropped to another five-and-a-half year low of $57.35 on renewed fears of a continuing glut in oil production. It pulled the prices of petroleum stocks worldwide decisively lower.
Sasol, whose income from fuel is directly linked to the oil price, traded 2.23% weaker at R428.00. BHP Billiton, which has oil and gas interests all over the world, gave up 1.43% to R250.76.
Other commodity producers suffered the same fate and the volatile share price of Kumba Iron Ore [JSE:KIO] gave up 1.94% to R239.81. Its holding company, Anglo American [JSE:AGL], lost 1.05% to R271.62.
African Rainbow Minerals [JSE:ARI], the empowerment company with extended interests in iron ore and manganese, also dropped 2.64% and traded at only R120.12 compared to a high of R236.50 reached in February this year.
Sentiment on world markets, and particularly European markets, was certainly dampened after Greek lawmakers rejected the government's candidate for president, leaving Greece facing a snap election that could derail its bailout programme.
Polls suggest such an election may be won by the left-wing Syriza party that has expressed opposition to Greece's bailout programme.
Analysts said the Greek result could affect the European Central Bank's plans for new economic stimulus measures to tackle the economic weakness afflicting Europe, such as quantitative easing.
That news put an end to the rally by banking shares on Monday, when FirstRand [JSE:FSR] and Nedbank [JSE:NED] both reached new 52-week highs. FirstRand lost 0.59% on Tuesday morning to R50.70 and Nedbank traded 0.88% softer at R248.94.
One share that moved against the trend is Naspers [JSE:NPN], which gained 0.72% to R1 540.24 - now close to the high of R1 555.00 set last month.
Investors are still trying to attract value from Telkom [JSE:TKG], despite the fact that the share has gained 147.1% over the past year. On Tuesday it traded another 2.17% higher at R70.50 after reaching a low of only R28 in January this year. Telkom is now trading at a price to earnings ratio of 16.65.
