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Johannesburg - The JSE was flat in midday trade on Wednesday
in line with lower world markets due to global growth fears worrying investors‚
with local retailers and platinum sectors providing some support on the local
bourse.
At 12pm the JSE All Share [JSE:J203] index was up 0.04% at
36‚086.46 points‚ the retail sector added 1.2% and platinums up 0.97%.
“There is a rebound in the retail sector today after it took
a pounding on Friday‚ Monday and yesterday as the rand weakened. Off-shore
investors are big shareholders in SA’s retailers and they sold off their retail
holdings heavily. The rand has rebounded and the retail sector is seen 1.2%
higher on the day‚ with some bargain hunting seen in this space‚” said Hennie
Fourie‚ stockbroker at PSG Konsult in Pretoria.
The platinum sector was the second best performing index at
noon‚ while general diversified miners such as Anglo American and BHP Billiton
were trading lower after Alcoa in the US kicked off the third quarter earning
results season in America.
Alcoa is the world's third largest producer of aluminum‚
behind Rio Tinto Alcan and Rusal.
“Alcoa brought out better than expected results‚ but made
comments about a slowdown in the China economy which affected our commodities
negatively today‚ after our commodities have done well as of late‚ with some
profit taking seen today‚” Fourie said.
European markets were all trading in the red with the London
FTSE 100 seen 0.48% weaker at 11:45am local time.
In the East the Japanese Nikkei 225 closed almost 2% weaker‚
while the Hong Kong Hang Seng Index was last seen trading flat (-0.08%).
It is a quiet day on the local calendar front as SA awaits
Thursday’s manufacturing and mining production figures for August.
“We estimate manufacturing production slumped to -3.3%
year-on-year‚ underpinning our view that the sector will not contribute to GDP
in the last six month of this year‚” Absa Capital said in a note.
“The IMF’s Global Financial Stability Report was released
this morning‚ which estimates‚ under the assumption that fiscal reforms are not
implemented hastily‚ that the euro area’s banks will need to deleverage by $4.5
trillion over a little bit more than a year‚ up about 20% from the Fund’s
April’s projection. This is a reminder of the current precarious global
environment‚ which is hampering SA’s growth prospects as well‚” the bank added.
“At one stage yesterday it seemed as if the local transport strike was fizzling out‚ with employers and unions meeting at the negotiation table. No resolution was reached‚ as workers demanded a 19% rise over two years‚ while employers offered 18%. Two of the smaller unions will return to work today‚ however‚” the bank added.
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