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Johannesburg - Broad-based bargain hunting gave the JSE a solid start on Tuesday, but by midday the momentum was lost and most indices were marginally down.
Bad news about the Chinese economy led to a worldwide selloff on Thursday, but commentators expected that the local market would open stronger this morning, particularly after the American markets stabilised towards the end of the session last night.
It did happen and the all share index as well as the Top 40-indeks were at one stage almost half a percent stronger, but by midday all these gains were lost.
By lunch time the all share index was 0.14% lower on 47 256 points and the Top 40-index lost 0.11% to 42 688 points.
The only index that were slightly higher were the resources sector that lost more than 1 000 points on Monday on the news that Chinese exports fell by more than 18% in February after growth of 10% the previous month.
South African resources companies are very dependent on strong growth in China, which buy most of the commodities that they produce.
By 13:52 the resources index was 0.26% higher on 55 090 points. The rebound in resources stocks is according to Imara SP Reid a technical rebound after the sector had been under pressure from profit-taking for the last two weeks. The index are now closer to levels where if offers value again.
Anglo American [JSE:AGL] which lost about 4% of its value on Monday was 1.26% higher at R258.81.
Shares of some companies whose fortunes are very closely linked to the Chinese economy were still under pressure on Tuesday. Kumba Iron Ore Resources [JSE:KIO] which lost 8.5% on Monday was another 3.85% lower on R374.98.
Kumba is dependent for 60% of his income on China and the iron ore market is under severe pressure with prices already 25% down and stock piles growing.
BHP Billiton [JSE:BIL], another iron producer, gained 0.22% to R325.70.
Sasol [JSE:SOL] was up 0.86% to R584.77 as the market reacted favourably to results published on Monday.
Among platinum shares Amplats [JSE:AMS] was up 1.04% at R445.33, with Impala Platinum [JSE:IMP] gaining 0.57% to R115.54.
Times Media [JSE:TMG] started the day more than 10.41% higher after the media group said it expected much stronger interim results to end December after the disposal of discontinued operations. By 13:52 the share traded 6.6% higher at R21.00.
Bad news about the Chinese economy led to a worldwide selloff on Thursday, but commentators expected that the local market would open stronger this morning, particularly after the American markets stabilised towards the end of the session last night.
It did happen and the all share index as well as the Top 40-indeks were at one stage almost half a percent stronger, but by midday all these gains were lost.
By lunch time the all share index was 0.14% lower on 47 256 points and the Top 40-index lost 0.11% to 42 688 points.
The only index that were slightly higher were the resources sector that lost more than 1 000 points on Monday on the news that Chinese exports fell by more than 18% in February after growth of 10% the previous month.
South African resources companies are very dependent on strong growth in China, which buy most of the commodities that they produce.
By 13:52 the resources index was 0.26% higher on 55 090 points. The rebound in resources stocks is according to Imara SP Reid a technical rebound after the sector had been under pressure from profit-taking for the last two weeks. The index are now closer to levels where if offers value again.
Anglo American [JSE:AGL] which lost about 4% of its value on Monday was 1.26% higher at R258.81.
Shares of some companies whose fortunes are very closely linked to the Chinese economy were still under pressure on Tuesday. Kumba Iron Ore Resources [JSE:KIO] which lost 8.5% on Monday was another 3.85% lower on R374.98.
Kumba is dependent for 60% of his income on China and the iron ore market is under severe pressure with prices already 25% down and stock piles growing.
BHP Billiton [JSE:BIL], another iron producer, gained 0.22% to R325.70.
Sasol [JSE:SOL] was up 0.86% to R584.77 as the market reacted favourably to results published on Monday.
Among platinum shares Amplats [JSE:AMS] was up 1.04% at R445.33, with Impala Platinum [JSE:IMP] gaining 0.57% to R115.54.
Times Media [JSE:TMG] started the day more than 10.41% higher after the media group said it expected much stronger interim results to end December after the disposal of discontinued operations. By 13:52 the share traded 6.6% higher at R21.00.
