Johannesburg - There seems to be upward momentum on the JSE as the market again opened stronger on Tuesday after closing higher overnight.
Analysts however warned that the upward potential seems to be limited, unless the technical picture on the US and European markets improve drastically, as overhead selling is still a factor in the overall picture.
At midday, the All Share index was 0.65% higher on 47 182 points, while the Top 40-index was at 42 546 points, which is 0.76% higher on Monday's close.
Imara SP Reid said in its daily market snapshot that 42 400 is a realistic target for the Top 40-index, but by midday the index was already past that target.
The JSE received little support from US markets‚ with the Dow Jones closing 0.16% lower and the S&P 500 failing to sustain record levels‚ losing 0.49%. The Asian markets were also weaker.
Rand Merchant Bank said in an early morning note that global markets were relatively subdued. “Global equity markets are swinging back and forth from positive to negative‚ implying no clarity‚” RMB said.
The local market is awaiting Thursday’s Reserve Bank announcement on interest rates‚ with the consensus that rates will remain unchanged.
Most of the major indices were higher. The biggest mover this morning was again the resources index which was 1.45% higher on 55 429 points at midday.
Imara SP Reid said further modest improvement are possible in the short term, but the longer term weekly technical chart indicates that the sustainability of the upside in the resources sector remains questionable for the moment.
There is still also concern about China’s growth prospects after Monday’s weak Chinese purchasing managers’ index (PMI) figure. China is an important buyer of South African commodities.
Retail shares were again higher after the index closed 2.34% higher on Monday. Woolworths [JSE:WHL] was 0.65% firmer at R71.27‚ with Shoprite [JSE:SHP] gaining 1.07% to R150.59.
In the stronger banking sector‚ Capitec [JSE:CPI] rose for the second consecutive day ahead of results set for release on Wednesday. It gained 1.56% to R185.85. Standard Bank [JSE:SBK] was 3.68% stronger at R134.22.
After rising by more than 5% on Monday‚ Naspers [JSE:NPN] was again under selling pressure‚ losing 4.1% to R1 169.96.
In the IT sector, Pinnacle Holdings [JSE:PNC] took a beating after the firm announced that one of its executive directors was charged with attempting to bribe a senior police official with R5m.
The allegedly bribe by Takalani Tshivhase was in order to win a contract for his company, police said on Tuesday.
The shares were changing hands 18.4% cheaper at R16.32.
Analysts however warned that the upward potential seems to be limited, unless the technical picture on the US and European markets improve drastically, as overhead selling is still a factor in the overall picture.
At midday, the All Share index was 0.65% higher on 47 182 points, while the Top 40-index was at 42 546 points, which is 0.76% higher on Monday's close.
Imara SP Reid said in its daily market snapshot that 42 400 is a realistic target for the Top 40-index, but by midday the index was already past that target.
The JSE received little support from US markets‚ with the Dow Jones closing 0.16% lower and the S&P 500 failing to sustain record levels‚ losing 0.49%. The Asian markets were also weaker.
Rand Merchant Bank said in an early morning note that global markets were relatively subdued. “Global equity markets are swinging back and forth from positive to negative‚ implying no clarity‚” RMB said.
The local market is awaiting Thursday’s Reserve Bank announcement on interest rates‚ with the consensus that rates will remain unchanged.
Most of the major indices were higher. The biggest mover this morning was again the resources index which was 1.45% higher on 55 429 points at midday.
Imara SP Reid said further modest improvement are possible in the short term, but the longer term weekly technical chart indicates that the sustainability of the upside in the resources sector remains questionable for the moment.
There is still also concern about China’s growth prospects after Monday’s weak Chinese purchasing managers’ index (PMI) figure. China is an important buyer of South African commodities.
Retail shares were again higher after the index closed 2.34% higher on Monday. Woolworths [JSE:WHL] was 0.65% firmer at R71.27‚ with Shoprite [JSE:SHP] gaining 1.07% to R150.59.
In the stronger banking sector‚ Capitec [JSE:CPI] rose for the second consecutive day ahead of results set for release on Wednesday. It gained 1.56% to R185.85. Standard Bank [JSE:SBK] was 3.68% stronger at R134.22.
After rising by more than 5% on Monday‚ Naspers [JSE:NPN] was again under selling pressure‚ losing 4.1% to R1 169.96.
In the IT sector, Pinnacle Holdings [JSE:PNC] took a beating after the firm announced that one of its executive directors was charged with attempting to bribe a senior police official with R5m.
The allegedly bribe by Takalani Tshivhase was in order to win a contract for his company, police said on Tuesday.
The shares were changing hands 18.4% cheaper at R16.32.