Johannesburg - The JSE was down at midday on Tuesday with resources and banks being among the bigger losers as traders looked to consolidate.
“The market is generally quite mixed‚” said Ferdi Heyneke of Afrifocus. “There’s an underlying firm tone but we’re seeing some consolidation in some places.”
At 12:02 the All Share [JSE:J203] index was softer (-0.44%) at 40 654.26 points‚ with banks giving back 0.38% and resources down 0.51%. The JSE Top 40 - (Tradeable) [JSE:J200] was down almost half a percent to 36 232.85.
“The slide we’ve seen this morning doesn’t appear to be attached to anything specific‚” said Heyneke. “European markets are quite flat‚ but the rand has weakened again in the last couple of days.”
Retailers continued to lose some of their shine‚ with Shoprite (SHP) giving up 2.36% and Foshini (TFG) 1.90%. Mr Price gave up 2.04% since the start of trade on Tuesday.
“Retailers have seen very strong runs but now we’re seeing them fall off a bit. There has also been a bit of volatility in some of retails such as Shoprite.”
In comparison‚ industrials such as Bidvest (0.18%) and Richmont (0.31%) appear to be holding up quite well.
Heyneke said that results coming in have been more or less within expectations. “Although expectations have been negative but markets have been aware of that. Anglo will be a big one when it comes in‚” he said.
Hudaco (HDC) shares were down 7.30% at midday on news that the South African Revenue Services had made tax claims on certain aspects flowing from the implementation of the company’s black economic empowerment (BEE) structure.
RMB said in a note earlier today that conditions should remain much the same today given the lack of any major data. “President Obama’s state of the nation address will receive a lot of attention overnight‚” they said.
European markets were mixed today with the UK’s FTSE 100 up 0.16% to 6287.06 and the Paris CAC flat (0.02%).
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