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Johannesburg - With the Standard and Poor-index on Wall Street closing on a record last night, the scene was set for a rally on the JSE this morning, but it did not happen.
By midday the all share on the JSE was only 31.83 points higher on 47 082, while the Top 40 index traded 43.48 points higher at 42 588.
Most indices were slightly higher, except for the resources and gold sector where profit taking continued.
Resources was 0.41% lower and gold 2.17% lower, as the gold price was forced lower again by profit taking.
Asian markets also responded positively on Wall Street’s strong performance, after Federal Reserve chair Janet Yellen suggested before the Senate Banking Committee that the pace of the tapering of the Fed economic stimulus plan could be slowed down if the weakness in the American economy continued.
But Imara SP Reid said in its morning snaphot that the Top 40 index in particular are on such high levels that there is little further room for improvement.
Yellen told the Senate Banking Committee that central bank policymakers thought severe weather conditions across much of the country was to blame for a disappointing run of economic data over the past two months, including on jobs, industrial output and consumption.
However, she said they would be keeping a close eye on the economy to see if the weak figures continue, which could lead to a slower pace of cuts to the stimulus programme.
This is good news for emerging markets like South Africa, however, the economic news on the local front is not as positive. The sharper than expected rise in the production price index this week supports views that more rate hikes could be on the cards. Earlier in the week Finance Minister Pravin Gordhan lowered the government's growth forecast for the economy in his budget speech.
The market also awaits the latest trade data, which is a good indicator of what will happen to the deficit on the current account, currently a big burden on the rand.
The local unit traded slightly weaker at R10.67/$ on Friday.
The insurance counters fared well‚ with Old Mutual [JSE:OML] trading 4.83% higher to R34.97 after reporting annual earnings per share (EPS) up 21%. Santam [JSE:SNT] was down 0.59% at R169.10 after reporting solid results earlier in the week.
Liberty [JSE:LBH], who announced a new management team on Thursday, as well as the best results in ten years, traded 0.16% higher at R118.89.
Among banking shares FirstRand [JSE:FSR], who published an upbeat trading update earlier this week, gained 0.16% to R33.90.
Mondi plc [JSE:MND] added 3.64% at R190.66 after reporting that underlying earnings for the year ended 2013 were up 37%.
Among gold shares Gold Fields [JSE:GFI] lost 1.81% to R39.62‚ with Harmony [JSE:HAR] down 2.48% to R33.84.
By midday the all share on the JSE was only 31.83 points higher on 47 082, while the Top 40 index traded 43.48 points higher at 42 588.
Most indices were slightly higher, except for the resources and gold sector where profit taking continued.
Resources was 0.41% lower and gold 2.17% lower, as the gold price was forced lower again by profit taking.
Asian markets also responded positively on Wall Street’s strong performance, after Federal Reserve chair Janet Yellen suggested before the Senate Banking Committee that the pace of the tapering of the Fed economic stimulus plan could be slowed down if the weakness in the American economy continued.
But Imara SP Reid said in its morning snaphot that the Top 40 index in particular are on such high levels that there is little further room for improvement.
Yellen told the Senate Banking Committee that central bank policymakers thought severe weather conditions across much of the country was to blame for a disappointing run of economic data over the past two months, including on jobs, industrial output and consumption.
However, she said they would be keeping a close eye on the economy to see if the weak figures continue, which could lead to a slower pace of cuts to the stimulus programme.
This is good news for emerging markets like South Africa, however, the economic news on the local front is not as positive. The sharper than expected rise in the production price index this week supports views that more rate hikes could be on the cards. Earlier in the week Finance Minister Pravin Gordhan lowered the government's growth forecast for the economy in his budget speech.
The market also awaits the latest trade data, which is a good indicator of what will happen to the deficit on the current account, currently a big burden on the rand.
The local unit traded slightly weaker at R10.67/$ on Friday.
The insurance counters fared well‚ with Old Mutual [JSE:OML] trading 4.83% higher to R34.97 after reporting annual earnings per share (EPS) up 21%. Santam [JSE:SNT] was down 0.59% at R169.10 after reporting solid results earlier in the week.
Liberty [JSE:LBH], who announced a new management team on Thursday, as well as the best results in ten years, traded 0.16% higher at R118.89.
Among banking shares FirstRand [JSE:FSR], who published an upbeat trading update earlier this week, gained 0.16% to R33.90.
Mondi plc [JSE:MND] added 3.64% at R190.66 after reporting that underlying earnings for the year ended 2013 were up 37%.
Among gold shares Gold Fields [JSE:GFI] lost 1.81% to R39.62‚ with Harmony [JSE:HAR] down 2.48% to R33.84.
