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Port Elizabeth - The JSE softened somewhat during the last week amid concerns that share markets world-wide has run too hard for too long and seem destined for a bit of a correction.
The JSE Top-40 decreased by about 1.5% during the week, but the figures only tell part of the story.
It is noteworthy that decreases in share prices were limited to only a few of the largest constituents of the Top-40 index, while the rest of the market looked positively healthy and ready to run another few kilometres.
Among the losers last week were BHP Billiton [JSE:BIL], which fell 2.3% and Anglo American [JSE:AGL] which declined 1%. SAB Miller [JSE:SAB] dropped less than half a percent and Sasol [JSE:SOL] lost 1.4%. These declines can hardly be described as a crash.
Naspers [JSE:NPN] was fingered as the culprit to bring the market down with a decline of 3.5% as companies with stake in modern high-technology and media interests came under pressure globally.
The rest of the JSE remained quite strong and share prices continued to increase as investors used every bit of weakness to buy shares for a few cents or a few rands cheaper.
Most economic and financial news remained positive during the last week. For instance, the announcement by Woolworths [JSE:WHL] that it made an offer to buy the Australian David Jones retail chain for R21.4bn, reminding investors that SA businesses still have lots of opportunity to expand into other markets.
Other good news came from Pick n Pay [JSE:PIK] which published a trading statement to the effect that results for the year to February will show an increase of nearly 8% in sales, indicating a healthy improvement in earnings when results are released later this week.
The week ahead
In addition to Pick n Pay's results, investors can get a few more clues about the spending capabilities of the SA consumer when SAB Miller publishes its quarterly trading update.
It will probably show continued strong growth from SA and Africa, as well as improved results from the US market.
Stats SA will also tell the official story with the release of retail sales figure for February on Wednesday and wholesale trade figures for January.
On the mining side, BHP Billiton will tell the world how things are looking in the international commodities market in its operational review while the SA platinum industry will continue on its road to ruin.
- Fin24
The JSE Top-40 decreased by about 1.5% during the week, but the figures only tell part of the story.
It is noteworthy that decreases in share prices were limited to only a few of the largest constituents of the Top-40 index, while the rest of the market looked positively healthy and ready to run another few kilometres.
Among the losers last week were BHP Billiton [JSE:BIL], which fell 2.3% and Anglo American [JSE:AGL] which declined 1%. SAB Miller [JSE:SAB] dropped less than half a percent and Sasol [JSE:SOL] lost 1.4%. These declines can hardly be described as a crash.
Naspers [JSE:NPN] was fingered as the culprit to bring the market down with a decline of 3.5% as companies with stake in modern high-technology and media interests came under pressure globally.
The rest of the JSE remained quite strong and share prices continued to increase as investors used every bit of weakness to buy shares for a few cents or a few rands cheaper.
Most economic and financial news remained positive during the last week. For instance, the announcement by Woolworths [JSE:WHL] that it made an offer to buy the Australian David Jones retail chain for R21.4bn, reminding investors that SA businesses still have lots of opportunity to expand into other markets.
Other good news came from Pick n Pay [JSE:PIK] which published a trading statement to the effect that results for the year to February will show an increase of nearly 8% in sales, indicating a healthy improvement in earnings when results are released later this week.
The week ahead
In addition to Pick n Pay's results, investors can get a few more clues about the spending capabilities of the SA consumer when SAB Miller publishes its quarterly trading update.
It will probably show continued strong growth from SA and Africa, as well as improved results from the US market.
Stats SA will also tell the official story with the release of retail sales figure for February on Wednesday and wholesale trade figures for January.
On the mining side, BHP Billiton will tell the world how things are looking in the international commodities market in its operational review while the SA platinum industry will continue on its road to ruin.
- Fin24
