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Johannesburg — The JSE was in positive territory on Wednesday morning as Tuesday’s profit-taking gave way to bargain-hunting by investors who saw value in stocks at lower price levels.
At 9:41‚ the JSE All Share [JSE:J203] index was up 0.67% at 39‚884.95 points‚ and the blue-chip Top 40 - (Tradeeble) [JSE:J200] index up by a similar margin‚ adding 0.70%.
Gold miners‚ however‚ continued their slide‚ dropping 1.40% after ending the previous day down 3.65% due to US monetary stimulus uncertainty.
Retailers gained the most on Wednesday morning‚ adding 1.58% after recent weakness.
Platinums managed some upside‚ adding 1.06%‚ after dropping more than 4% on Tuesday.
European markets were trading mixed‚ with London’s FTSE 100 seen 0.19% softer in early-morning trade.
“Locally we are seeing a bit of a rebound this morning after a huge fall yesterday‚ with the JSE All Share index shedding 3.21% on Tuesday. One normally sees a bit of a rebound after such a big fall‚ but the rebound might not last‚” said Hennie Fourie‚ a stockbroker at PSG Konsult.
“We saw a worldwide sell-off yesterday‚ and not only in SA. Emerging markets sold off more than the US and European market as it was very much a risk-off day yesterday‚” he said.
“A lot of volatility in global markets was triggered by ratings agency Standard & Poor’s upgrade of the US’s economic outlook from negative to stable two days ago. This is good news‚ but it increases the possibility that the US Federal Reserve might decrease its monetary stimulus programme‚ which would cause less liquidity in global markets‚ which would cause a sell-off in world markets‚” Fourie said.
On the local bourse‚ Anglo American (AGL) was 0.22% firmer at R215.60 after shedding more than 4% yesterday.
Compagnie Richemont (CFR) nudged up 0.14% to R88.33 after dropping more than 3% yesterday.
Gold counters AngloGold Ashanti (ANG) gave back 1.55% to R165.00 and Harmony (HAR) was down 1.67% at R38.84. Anglo American Platinum (AMS) recovered 2.53% to R313.74.
