Publications
Partners
Johannesburg - The JSE all share index was flat early on
Monday morning‚ just short of the record high it reached on Friday‚ with global
market attention focusing on the outcome of the US election on Tuesday.
Platinum and industrial stocks were showing some upside on
Monday‚ while resources led the downside.
At 9:41pm‚ the JSE All Share [JSE:J203] index was down 0.17%
to 37‚601.05 points‚ with the Top 40 - (Tradeable) [JSE:J200] dipping 0.15%.
Platinums gained 0.17%‚ industrials were flat (0.05%)‚ while resources dipped 0.45%.
Asian market were lower‚ with Japan’s Nikkei 225 average
closing 0.48% lower and the Hong Kong Hang Seng index down 0.32%.
Rand Merchant Bank said in a note: “The US payrolls data on
Friday continued the recent run of positive data out of the US - 171 000 jobs
were created in October‚ with the previous month’s number being revised higher
to 148 000 (from 114 000). Not only has the good jobs report supported the
greenback‚ but it is expected to boost (President Barack) Obama’s campaign
ahead of tomorrow’s presidential election. We note‚ however‚ that the market is
likely to shift its attention to the fiscal cliff debate after the election‚
which is likely to push the greenback weaker again‚” the bank said.
“This week is expected to be busy as event risk from
offshore is compounded by local data releases. The September mining and
manufacturing data on Thursday should confirm a marked slowdown in gross
domestic product growth in the third quarter as labour unrest caused
significant supply disruptions in mining‚ which seem to be spilling over to
manufacturing‚ based on the decline in the purchasing managers index’s business
activity component.
“From an inflation perspective‚ tomorrow’s release of the new consumer price index weights‚ to be implemented next year‚ will also make headlines given speculation that the new weights will be inflationary and could reinforce the market’s expectation of no further rate cuts‚” the bank said.
