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Johannesburg - Bargain hunters stepped in on Thursday morning after the previous day’s sharp drop in share prices on the JSE, but most of the enthusiasm was gone by midday.
The major indices were barely in the black by midday, after most of them opened sharply higher as the run fizzled out over the course of the morning’s trade.
By midday on Thursday the All-share index was only 0.13% higher at 48 118 points, while the Top 40-index also gained 0.13% to 42 094 points. The Financial index was at one stage 0.59% lower after a healthy start, while the Industrial index was only 0.25% higher.
The resources sector, which tumbled more than 5% on Wednesday, made a promising start but by midday most of the gains were given back and the index was only 0.71% higher. The Gold index was treading water (-0.08%) as the gold price run seemed to have come to an end, at least temporarily.
World markets, including the JSE, came under severe pressure on Wednesday when the World Bank downgraded its forecast for economic growth for 2015 from the 3.4% announced in June to only 3%, warning that slow economic prospects in the developed world would offset the advantages of the plunging oil price.
Commodity prices tumbled with copper, generally regarded as the indicator of what is happening with commodity prices, dropping more than 7% to the lowest level in more than five years. The share prices of major copper producers, including Anglo American [JSE:AGL] and Glencore [JSE:GLN], tumbled to new 52-week lows.
Anglo American, which dropped almost 9% on Wednesday, was barely higher on Thursday and gained 0.36% to R182.88. Glencore, which lost more than 8% on Wednesday, lost another 1.8% to R41.95. BHP Billiton [JSE:BIL] recovered strongly and at midday was 3.33% higher at R229.21.
The two major iron ore producers, Kumba [JSE:KIO] and Assore [JSE:ASR], both slipped again. Kumba reached a new low of R230.81 after it lost 1.36%, and Assore was 0.68% softer at R144.75.
There was a rally in the oil price on Wednesday afternoon due to bargain hunting, but it lost steam again on Thursday morning. The price of Brent, which was as low as $46 on Wednesday morning, recovered to $48 per barrel before the rally fizzled out. By midday on Thursday oil was trading at $47 per barrel.
Sasol [JSE:SOL], whose income is directly related to the oil price, opened higher on Thursday due to the stronger oil price, but lost ground again as the oil price edged lower. By midday Sasol was trading at R310.05.
There was much interest in the retail sector after stronger than expected retail figures for December on Wednesday. Massmart [JSE:MSM] and Shoprite [JSE:SHP] also announced sales results on Wednesday which surprised the market on the upside.
Woolworths [JSE:WHL] was 2.86% higher on Thursday at R77.81 after it reached a high of R78.65. The high-end retailer reported a 55% jump in sales over the first half of the year, after receiving a boost from its acquisition of Australian department store David Jones. Without the impact of David Jones, whose acquisition was effective in August 2014, the group’s sales grew by 12.5%.
READ: Woolworths sales rise, shares up
Richemont [JSE:CFR], the maker of Cartier jewellery, reported that third-quarter revenue growth came to a halt for the first time in six years as protests in Hong Kong disrupted sales in the biggest market for Swiss watches. Revenue excluding currency shifts was unchanged in the three months to December. Analysts expected 1.5% growth.
Protests in Hong Kong, where rich Chinese purchase watches and jewellery at lower tax rates than on the mainland, caused shops to close in September and October.
Richemont’s share price dropped 0.64% to R99.55. Naspers [JSE:NPN] was 0.98% lower at R1 597.70 and SABMiller [JSE:SAB] lost 0.33% to R575.48.
The major indices were barely in the black by midday, after most of them opened sharply higher as the run fizzled out over the course of the morning’s trade.
By midday on Thursday the All-share index was only 0.13% higher at 48 118 points, while the Top 40-index also gained 0.13% to 42 094 points. The Financial index was at one stage 0.59% lower after a healthy start, while the Industrial index was only 0.25% higher.
The resources sector, which tumbled more than 5% on Wednesday, made a promising start but by midday most of the gains were given back and the index was only 0.71% higher. The Gold index was treading water (-0.08%) as the gold price run seemed to have come to an end, at least temporarily.
World markets, including the JSE, came under severe pressure on Wednesday when the World Bank downgraded its forecast for economic growth for 2015 from the 3.4% announced in June to only 3%, warning that slow economic prospects in the developed world would offset the advantages of the plunging oil price.
Commodity prices tumbled with copper, generally regarded as the indicator of what is happening with commodity prices, dropping more than 7% to the lowest level in more than five years. The share prices of major copper producers, including Anglo American [JSE:AGL] and Glencore [JSE:GLN], tumbled to new 52-week lows.
Anglo American, which dropped almost 9% on Wednesday, was barely higher on Thursday and gained 0.36% to R182.88. Glencore, which lost more than 8% on Wednesday, lost another 1.8% to R41.95. BHP Billiton [JSE:BIL] recovered strongly and at midday was 3.33% higher at R229.21.
The two major iron ore producers, Kumba [JSE:KIO] and Assore [JSE:ASR], both slipped again. Kumba reached a new low of R230.81 after it lost 1.36%, and Assore was 0.68% softer at R144.75.
There was a rally in the oil price on Wednesday afternoon due to bargain hunting, but it lost steam again on Thursday morning. The price of Brent, which was as low as $46 on Wednesday morning, recovered to $48 per barrel before the rally fizzled out. By midday on Thursday oil was trading at $47 per barrel.
Sasol [JSE:SOL], whose income is directly related to the oil price, opened higher on Thursday due to the stronger oil price, but lost ground again as the oil price edged lower. By midday Sasol was trading at R310.05.
There was much interest in the retail sector after stronger than expected retail figures for December on Wednesday. Massmart [JSE:MSM] and Shoprite [JSE:SHP] also announced sales results on Wednesday which surprised the market on the upside.
Woolworths [JSE:WHL] was 2.86% higher on Thursday at R77.81 after it reached a high of R78.65. The high-end retailer reported a 55% jump in sales over the first half of the year, after receiving a boost from its acquisition of Australian department store David Jones. Without the impact of David Jones, whose acquisition was effective in August 2014, the group’s sales grew by 12.5%.
READ: Woolworths sales rise, shares up
Richemont [JSE:CFR], the maker of Cartier jewellery, reported that third-quarter revenue growth came to a halt for the first time in six years as protests in Hong Kong disrupted sales in the biggest market for Swiss watches. Revenue excluding currency shifts was unchanged in the three months to December. Analysts expected 1.5% growth.
Protests in Hong Kong, where rich Chinese purchase watches and jewellery at lower tax rates than on the mainland, caused shops to close in September and October.
Richemont’s share price dropped 0.64% to R99.55. Naspers [JSE:NPN] was 0.98% lower at R1 597.70 and SABMiller [JSE:SAB] lost 0.33% to R575.48.
