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Johannesburg - South African stocks were slightly higher on Tuesday, but any fireworks on the markets are unlikely soon.
The strong performance of the rand this morning indicates that the sentiment towards emerging markets are improving, but it seems that Wall Street has the jitters which is influencing markets elsewhere.
By midday the All Share index was only 0.08% higher on 47 896 points, while the Top 40-index was 0.12% stronger on 43 072.
Most of the indices were slightly higher after yesterday’s drop when a few big shares were trading ex-dividend, except resources which was pushed lower by a stronger rand.
The local market normally takes its cue from Wall Street, where the S&P 500 posted its biggest three-day drop in two months, as investors bid down internet stocks and rotated into more defensive stocks such as utilities. Among the US losers on Monday were Apple, Yahoo, Google and LinkedIn.
It is the beginning of the results season in the United States and investors seems to be uncertain if companies’ results will match the valuations of their shares.
Analysts warned that the local market is also at levels where further profit taking is possible.
The news that the rand has hit its strongest level against the dollar this year this morning however gives hope that overseas investors are returning to emerging markets.
The weaker than expected US pay roll data have lessened the risk of the US raising interest rates, which makes the yield difference with emerging markets attractive again and improve investors' risk appetite.
Most emerging markets and their currencies are showing signs of improving. The Asian markets were mixed this morning, as investors are hoping for news of a possible stimulus plan for the Chinese economy.
The industrial index was 0.28% higher on 54 250 points after the heavyweight in the index, Naspers [JSE:NPN], recovered somewhat after it was severely hit by the world wide selloff in technology stocks, which also included the Chinese internet giant Tencent, of which Naspers owns 34%.
Naspers traded 1.45% higher on R1 056.44
The big stocks that traded ex-dividend and fell sharply on Monday, were all slightly lower again this morning. Sasol [JSE:SOL] was 0.38% lower on R569.80, while Exarro [JSE:EXX] lost 1.05% to R144.15. Sanlam [JSE:SLM] retreated a further 0.49% tot R54.72.
Amongst the resources stocks Anglo American [JSE:AGL] were 0.25% higher on R271.66, but the other big diversified group in this sector, BHP Billiton [JSE:BIL], traded 0.23% lower on R335.67.
The strong performance of the rand this morning indicates that the sentiment towards emerging markets are improving, but it seems that Wall Street has the jitters which is influencing markets elsewhere.
By midday the All Share index was only 0.08% higher on 47 896 points, while the Top 40-index was 0.12% stronger on 43 072.
Most of the indices were slightly higher after yesterday’s drop when a few big shares were trading ex-dividend, except resources which was pushed lower by a stronger rand.
The local market normally takes its cue from Wall Street, where the S&P 500 posted its biggest three-day drop in two months, as investors bid down internet stocks and rotated into more defensive stocks such as utilities. Among the US losers on Monday were Apple, Yahoo, Google and LinkedIn.
It is the beginning of the results season in the United States and investors seems to be uncertain if companies’ results will match the valuations of their shares.
Analysts warned that the local market is also at levels where further profit taking is possible.
The news that the rand has hit its strongest level against the dollar this year this morning however gives hope that overseas investors are returning to emerging markets.
The weaker than expected US pay roll data have lessened the risk of the US raising interest rates, which makes the yield difference with emerging markets attractive again and improve investors' risk appetite.
Most emerging markets and their currencies are showing signs of improving. The Asian markets were mixed this morning, as investors are hoping for news of a possible stimulus plan for the Chinese economy.
The industrial index was 0.28% higher on 54 250 points after the heavyweight in the index, Naspers [JSE:NPN], recovered somewhat after it was severely hit by the world wide selloff in technology stocks, which also included the Chinese internet giant Tencent, of which Naspers owns 34%.
Naspers traded 1.45% higher on R1 056.44
The big stocks that traded ex-dividend and fell sharply on Monday, were all slightly lower again this morning. Sasol [JSE:SOL] was 0.38% lower on R569.80, while Exarro [JSE:EXX] lost 1.05% to R144.15. Sanlam [JSE:SLM] retreated a further 0.49% tot R54.72.
Amongst the resources stocks Anglo American [JSE:AGL] were 0.25% higher on R271.66, but the other big diversified group in this sector, BHP Billiton [JSE:BIL], traded 0.23% lower on R335.67.
