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Johannesburg - The tug of war between profit takers and bargain hunters continued on the JSE on Monday morning, and by midday it was not clear which side was winning.
Halfway through the morning's trade it looked if the market was heading downwards again after Friday's strong performance, but by midday the Industrial index had wiped out all the losses from earlier in the day. This recovery and a decent run by financial shares also helped the All-share index recoup most of its earlier losses.
By midday the All-share index was only 0.18% softer at 50 764, and the Top 40 index was 0.27% lower at 45 127.
The Industrial index traded only 0.09% higher by midday on Monday, while the Financial index was at one stage 0.33% stronger.
The ultra negative view of investors on the commodity sector however continued, and the Resources 10-index was by midday almost 1.5% (1.47%) lower despite the good news about the interest rate cuts in China.
The same can be said of the Gold index, which lost 0.75% despite the fact that the gold price is at the highest levels in three weeks, in reaction to the lower interest rates in China which will make it cheaper for Chinese investors to own gold.
Besides the oversupply of various base metals, the sentiment in the commodity market is determined by the poorer economic prospects in China, the largest buyer of South Africa's commodities.
The announcement of lower interest rates in China should therefore be good news for local shares. China's central bank on Friday evening said it would slash its one-year rate for deposits by 25 basis points to 2.75%, and its one-year lending rate by 40 basis points to 5.6%, both effective on Saturday.
The move - the first cut since July 2012 - followed a series of disappointing data out of the world's number two economy, a key driver of global growth.
Last week, banking giant HSBC said its index of manufacturing activity in China showed the sector had stagnated in November, while other data on trade and industrial output also highlighted weakness.
The strength of the rand, which was still trading at below R11.00 to the dollar on Monday morning, did however put a damper on commodity shares, as commodity exporters earn more for the products in rand if the currency is weak.
READ: Rand slightly firmer but GDP data poses risk
The JSE's lacklustre performance is also contrary to the frenzy on other world markets, which responded positively to indications that the world's central banks will do everything in their power to promote growth.
Lower international interest rates are normally good for the local market, because international investors are then forced to look for higher yields in developing markets like South Africa.
Despite the uncertain sentiment on the JSE, the share price of Times Media [JSE:TMG] jumped by a massive 16.23% on Monday morning to R24.99, a new high for the past 52 weeks, beating the previous high of R23.00 set in March this year.
The run was sparked by a cautionary announcement stating new developments relating to the company, which may have a material effect on the share price. No details were provided, but the share price also gained 10% last week.
Alexander Forbes [JSE:AFH] was also at a 17-week high after its recent listing when it gained 1.35% to R9.73, beating the previous high of R9.60.
Halfway through the morning's trade it looked if the market was heading downwards again after Friday's strong performance, but by midday the Industrial index had wiped out all the losses from earlier in the day. This recovery and a decent run by financial shares also helped the All-share index recoup most of its earlier losses.
By midday the All-share index was only 0.18% softer at 50 764, and the Top 40 index was 0.27% lower at 45 127.
The Industrial index traded only 0.09% higher by midday on Monday, while the Financial index was at one stage 0.33% stronger.
The ultra negative view of investors on the commodity sector however continued, and the Resources 10-index was by midday almost 1.5% (1.47%) lower despite the good news about the interest rate cuts in China.
The same can be said of the Gold index, which lost 0.75% despite the fact that the gold price is at the highest levels in three weeks, in reaction to the lower interest rates in China which will make it cheaper for Chinese investors to own gold.
Besides the oversupply of various base metals, the sentiment in the commodity market is determined by the poorer economic prospects in China, the largest buyer of South Africa's commodities.
The announcement of lower interest rates in China should therefore be good news for local shares. China's central bank on Friday evening said it would slash its one-year rate for deposits by 25 basis points to 2.75%, and its one-year lending rate by 40 basis points to 5.6%, both effective on Saturday.
The move - the first cut since July 2012 - followed a series of disappointing data out of the world's number two economy, a key driver of global growth.
Last week, banking giant HSBC said its index of manufacturing activity in China showed the sector had stagnated in November, while other data on trade and industrial output also highlighted weakness.
The strength of the rand, which was still trading at below R11.00 to the dollar on Monday morning, did however put a damper on commodity shares, as commodity exporters earn more for the products in rand if the currency is weak.
READ: Rand slightly firmer but GDP data poses risk
The JSE's lacklustre performance is also contrary to the frenzy on other world markets, which responded positively to indications that the world's central banks will do everything in their power to promote growth.
Lower international interest rates are normally good for the local market, because international investors are then forced to look for higher yields in developing markets like South Africa.
Despite the uncertain sentiment on the JSE, the share price of Times Media [JSE:TMG] jumped by a massive 16.23% on Monday morning to R24.99, a new high for the past 52 weeks, beating the previous high of R23.00 set in March this year.
The run was sparked by a cautionary announcement stating new developments relating to the company, which may have a material effect on the share price. No details were provided, but the share price also gained 10% last week.
Alexander Forbes [JSE:AFH] was also at a 17-week high after its recent listing when it gained 1.35% to R9.73, beating the previous high of R9.60.
