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Johannesburg - The JSE was flat in early trade on Friday after a busy news day on Thursday, but a local dealer said the bourse looked resilient with investors waiting to buy into the dips.
The All Share [JSE:J203] index was up just 1.77 points in early trade to 32 218, with resources giving back 181 points. But gold was off just 12 points and industrials gained 59. Financials were off by 7 points, but banks gained 54 points, while platinum counters were flat.
The rand was trading at R7.96 to the dollar, from R8.02 at the JSE's close on Thursday. Gold traded at $1 766.58 a troy ounce from $1 758.62/oz at the JSE's previous close, while platinum was at $1 635/oz, from $1 618.20/oz previously.
"The market is not bad, but it is absorbing a lot of things. We had a big turnaround yesterday, but it looks quite resilient," said Ferdi Heyneke, equity analyst from Afrifocus.
He noted that the rand is holding just below 8 to the dollar and the rate decision came in as expected (at an unchanged 5.5% by the monetary policy committee on Thursday). Heyneke felt is was "not a bad thing to keep ammunition if they can as there are risks at play, so I think we are being prudent here".
Local dealers are also eyeing Dow futures this morning, which are up and according to Heyneke "look like they may continue to move up today. There is definitely some buying into the dips in this market."
And this includes some big stocks - Anglo American [JSE:AGL], Sasol [JSE:SOL] and Richemont [JSE:CFR] look quite strong. Swiss-based luxury goods group Richemont on Friday reported a 29% rise in sales to €4.2bn, or by 36% at constant exchange rates, for the six months ended September 2011.
Operating profit increased by 41% to €1.1m, while cash flow generated from operations was €606m compared with €598m in 2010. Its share price was last up 2.20% to R43.70.
The Anglo American share price, meanwhile, accounted for 20% of the volumes on the JSE on Thursday following a deal with Japan's Mitsubishi Corporation.
Mitsubishi Corporation is now a 24.5% shareholder in Anglo American Sur, the copper mining complex in Chile that could end up in the hands of Chilean state miner Corporacion Nacional del Cobre de Chile. Mitsubishi paid R58.5bn for the stake. Anglo was up 4.38% in early trade to R310.00.
"It is generally not a bad market - volatile but resilient. We are probably in for a year-end rally. Any good news out of Europe could really help," said Heyneke.
"But we do need a lot of resolutions to these problems in Europe. But so much of that is discounted in the market."
According to Absa Capital events in Europe pose a considerable downside risk for the global economy as a whole, but with interest rates having been left on hold for the past two monetary policy committee meetings, their sense is that the likelihood of a preemptive cut to counter increasing European risks is unlikely.
"Rather, we believe that a further rate-cutting cycle in SA would require Europe's crisis to set off a global economic crisis."
Dow Jones Newswires reports that Asian stock markets were mostly higher in choppy trade and the euro recovered modestly on Friday, rebounding slightly after a recent global sell-off as investors watched for further developments in the eurozone sovereign debt crisis.
On Friday, the first vote on new austerity measures in Italy is expected. The measures could be approved by the end of the weekend, paving the way for Silvio Berlusconi to step down as prime minister. Former European Union commissioner Mario Monti on Thursday emerged as frontrunner to succeed Berlusconi.
But an important signal is that US stock futures are higher on Friday, after markets rose onj Thursday as hopes of an improving labour market and clarification about France's credit rating buoyed investor sentiment.
Some reports yesterday noted a small uptick in local equities and the rand after the suspension of ANC Youth League leader Julius Malema was announced.
Views were divided on whether this actually helped stocks but if it means calls for nationalisation will be less loud, investors would have seen it as positive for resources counters, which did in fact lead the upside on Thursday.
The All Share [JSE:J203] index was up just 1.77 points in early trade to 32 218, with resources giving back 181 points. But gold was off just 12 points and industrials gained 59. Financials were off by 7 points, but banks gained 54 points, while platinum counters were flat.
The rand was trading at R7.96 to the dollar, from R8.02 at the JSE's close on Thursday. Gold traded at $1 766.58 a troy ounce from $1 758.62/oz at the JSE's previous close, while platinum was at $1 635/oz, from $1 618.20/oz previously.
"The market is not bad, but it is absorbing a lot of things. We had a big turnaround yesterday, but it looks quite resilient," said Ferdi Heyneke, equity analyst from Afrifocus.
He noted that the rand is holding just below 8 to the dollar and the rate decision came in as expected (at an unchanged 5.5% by the monetary policy committee on Thursday). Heyneke felt is was "not a bad thing to keep ammunition if they can as there are risks at play, so I think we are being prudent here".
Local dealers are also eyeing Dow futures this morning, which are up and according to Heyneke "look like they may continue to move up today. There is definitely some buying into the dips in this market."
And this includes some big stocks - Anglo American [JSE:AGL], Sasol [JSE:SOL] and Richemont [JSE:CFR] look quite strong. Swiss-based luxury goods group Richemont on Friday reported a 29% rise in sales to €4.2bn, or by 36% at constant exchange rates, for the six months ended September 2011.
Operating profit increased by 41% to €1.1m, while cash flow generated from operations was €606m compared with €598m in 2010. Its share price was last up 2.20% to R43.70.
The Anglo American share price, meanwhile, accounted for 20% of the volumes on the JSE on Thursday following a deal with Japan's Mitsubishi Corporation.
Mitsubishi Corporation is now a 24.5% shareholder in Anglo American Sur, the copper mining complex in Chile that could end up in the hands of Chilean state miner Corporacion Nacional del Cobre de Chile. Mitsubishi paid R58.5bn for the stake. Anglo was up 4.38% in early trade to R310.00.
"It is generally not a bad market - volatile but resilient. We are probably in for a year-end rally. Any good news out of Europe could really help," said Heyneke.
"But we do need a lot of resolutions to these problems in Europe. But so much of that is discounted in the market."
According to Absa Capital events in Europe pose a considerable downside risk for the global economy as a whole, but with interest rates having been left on hold for the past two monetary policy committee meetings, their sense is that the likelihood of a preemptive cut to counter increasing European risks is unlikely.
"Rather, we believe that a further rate-cutting cycle in SA would require Europe's crisis to set off a global economic crisis."
Dow Jones Newswires reports that Asian stock markets were mostly higher in choppy trade and the euro recovered modestly on Friday, rebounding slightly after a recent global sell-off as investors watched for further developments in the eurozone sovereign debt crisis.
On Friday, the first vote on new austerity measures in Italy is expected. The measures could be approved by the end of the weekend, paving the way for Silvio Berlusconi to step down as prime minister. Former European Union commissioner Mario Monti on Thursday emerged as frontrunner to succeed Berlusconi.
But an important signal is that US stock futures are higher on Friday, after markets rose onj Thursday as hopes of an improving labour market and clarification about France's credit rating buoyed investor sentiment.
Some reports yesterday noted a small uptick in local equities and the rand after the suspension of ANC Youth League leader Julius Malema was announced.
Views were divided on whether this actually helped stocks but if it means calls for nationalisation will be less loud, investors would have seen it as positive for resources counters, which did in fact lead the upside on Thursday.
