Johannesburg - The JSE share market opened softer on Monday
morning with resources and platinums the biggest losers‚ albeit on low volumes‚
due to a lack of news to drive the market forward.
At 9:25am‚ the JSE All Share [JSE:J203] index was down 0.29%
at 36‚101.78 points‚ with resources shedding 0.89% and platinum miners down
“It is not a fantastic start to the day and we are playing
catch-up with what happened in international markets yesterday. Anglo American
[JSE:AGL] had a very week day yesterday in London trade. Locally we missed that with our
markets being closed for the holiday. The market is digesting more tough news
from the mining sector with Caterpillar in the US warning that the environment
was tough in the mining sector and that this may last for some time‚” said Ryan
Wibberley‚ equity dealer at Investec Asset Management in Cape Town.
“Meanwhile local mining labour woes are continuing at
Anglogold Ashanti [JSE:ANG] and the market is waiting for an update from Anglo
Platinum [JSE:AMS] with regards to labour issues‚” he added
Leading European markets were mostly trading lower‚ with
only the UK FTSE 100 last seen flat (-0.03%); Asian markets were slightly
weaker in late trade.
Rand Merchant Bank said in a morning note that the
international backdrop was marginally negative but the dollar/rand seemed happy
to trade sideways in a R8.19 - R8.28 range.
“Event risk is limited until Thursday’s Spanish reforms
announcement. Weakening euro/dollar and commodities are the markets to watch.
German business confidence took another hit in September‚ dropping to its
lowest level since 2010 and suggesting that even Europe’s strongest economy is
now faltering. Coming after other weak eurozone as well as US and Chinese data
last week‚ it is clear that the global economy is really struggling‚” the bank
“The major market issue at the moment is when or even if
Spain will formally request a bailout thereby triggering the European Central
Bank bond buying programme. The Spanish prime minister continues to appear
reluctant‚ having promised not to ask for help and presumably having seen the
governments of Greece‚ Portugal and Ireland all fall after going cap in hand to
Brussels. Spain will announce various reforms as well as bank stress test
results on Thursday. Last week it was reported that it would use this
opportunity to formally request a bailout programme‚ but the rumour mill has
since gone quiet‚” the bank said.
“Domestic news is mildly rand positive. Local firebrand
Julius Malema is to appear in court on Wednesday. Foreigners are buying back
into the domestic bonds aggressively‚ although they continue a mild exit from
equities. Watch Friday’s trade data for signs on how the current account is
performing‚” the bank added.
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