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Johannesburg - There was a negative sentiment on the JSE on Tuesday morning with all the major indices down by midday, following sharp sell-offs in Asia on Tuesday morning and in New York on Monday night.
Negative economic news about the world’s two major economies, the United States and China, has raised concerns about the economic prospects for emerging markets; these two economies are major markets for the commodities produced by developing countries, including South Africa.
Emerging markets are already under pressure from capital outflows following the phasing out of the Federal Reserve’s stimulus of the American economy,
At midday theJSE indices recovered somewhat, but the All-share index was 621,1 points or 1.38% weaker at 44‚336 points‚ with the Top 40 index 592,80 or 1.47% lower at 39 839..
The industrial index fell 1.859% and resources were 1.15% lower. The financial index was 0.70% weaker..
The slump in the Asian markets followed a huge sell-off on Wall Street, after the Institute for Supply Management said its purchasing managers' index (PMI) of manufacturing activity fell to 51.3 in January from 56.5 in December. A figure above 50 indicates growth and anything below points to contraction.
The results - following worse-than-expected jobs data in January - raised concerns the US economy may not be as strong as initially thought, a worry for investors less than a week after the Federal Reserve said it would reduce its stimulus, citing signs of a strong recovery.
China released figures at the weekend showing its PMI fell to 50.5 in January from 51 in December.
Disappointing news on the local industrial sector contributed further to the sell-off of blue chip shares. South African PMI figures released on Monday remained unchanged at 49.9 in January‚ below market expectations of a marginal recovery to 50.2.
Among the resources stocks Anglo American was only 111c or 0.43% lower at R258.88‚ after opening more than 2% weaker. Amplats was a massive 1 412c or 3.2% softer at R426.77 after the group warned of further job losses. Impala Platinum traded 151c or 1.3% lower at R113,59.
Among industrials‚ Imperial fell 526c or 3.01% to R169.55‚ while Sibanye was the biggest loser in the gold sector, falling 55c or 3.25% to R16.37.
Financial stocks continued their slide from the previous week and Standard Bank traded 147c or 1.27c% lower at R114.48. Barclays Africa was 754c or 0.88% lower at R849.95.
Retail shares recovered somewhat on Friday and Monday, but were under pressure again on Tuesday morning. Shoprite traded 217c or 1.5% lower at R142,14 and Pick n Pay was 40c or 1.92% lower at R20.40.
- Fin24
Negative economic news about the world’s two major economies, the United States and China, has raised concerns about the economic prospects for emerging markets; these two economies are major markets for the commodities produced by developing countries, including South Africa.
Emerging markets are already under pressure from capital outflows following the phasing out of the Federal Reserve’s stimulus of the American economy,
At midday theJSE indices recovered somewhat, but the All-share index was 621,1 points or 1.38% weaker at 44‚336 points‚ with the Top 40 index 592,80 or 1.47% lower at 39 839..
The industrial index fell 1.859% and resources were 1.15% lower. The financial index was 0.70% weaker..
The slump in the Asian markets followed a huge sell-off on Wall Street, after the Institute for Supply Management said its purchasing managers' index (PMI) of manufacturing activity fell to 51.3 in January from 56.5 in December. A figure above 50 indicates growth and anything below points to contraction.
The results - following worse-than-expected jobs data in January - raised concerns the US economy may not be as strong as initially thought, a worry for investors less than a week after the Federal Reserve said it would reduce its stimulus, citing signs of a strong recovery.
China released figures at the weekend showing its PMI fell to 50.5 in January from 51 in December.
Disappointing news on the local industrial sector contributed further to the sell-off of blue chip shares. South African PMI figures released on Monday remained unchanged at 49.9 in January‚ below market expectations of a marginal recovery to 50.2.
Among the resources stocks Anglo American was only 111c or 0.43% lower at R258.88‚ after opening more than 2% weaker. Amplats was a massive 1 412c or 3.2% softer at R426.77 after the group warned of further job losses. Impala Platinum traded 151c or 1.3% lower at R113,59.
Among industrials‚ Imperial fell 526c or 3.01% to R169.55‚ while Sibanye was the biggest loser in the gold sector, falling 55c or 3.25% to R16.37.
Financial stocks continued their slide from the previous week and Standard Bank traded 147c or 1.27c% lower at R114.48. Barclays Africa was 754c or 0.88% lower at R849.95.
Retail shares recovered somewhat on Friday and Monday, but were under pressure again on Tuesday morning. Shoprite traded 217c or 1.5% lower at R142,14 and Pick n Pay was 40c or 1.92% lower at R20.40.
- Fin24
