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Johannesburg - The dollar is on the charge again on expectations that the European Central Bank may relax its monetary policy even more at its meeting on Thursday, which as usual is bad news for resources and resources shares.
Resources shares were therefore again the biggest losers on Thursday as the JSE’s top indices struggle to establish a solid foothold for future growth.
By midday on Thursday the Resources index was 1.68% lower than the day before, which pushed major indices moderately lower.
The All-share index was at that stage 0.21% lower at 49 753 points, while the Top 40 index lost 0.31% to 44 095 points.
Thursday’s losses are a slight setback as the Top 40 index is trying to move within range of the 200-day moving average of about 44 520 points.
The technical analysts of Imara SP Reid said a break beyond this level on brisk volume support would serve as a catalyst for further upside momentum and the general area beyond 45 000 points has taken on additional significance from a resistance perspective.
The dollar, boosted by more positive indicators about the American economy which pushed Wall Street to new record heights, also strengthened against the euro as investors await the outcome of the ECB meeting on monetary policy, which could lead to even more stimulatory measures to boost the struggling eurozone economy.
The two biggest double-listed heavyweights in the resources sector, Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL], gave back almost all the previous day's gains.
Anglo lost 2.46% to R225.37, which leaves it 21.3% lower over the last three months and now only 4% higher for the year. BHP Billiton, which lost 28% over the last three months, is already 13.9% softer for the year after losing another 1.81% to R61.72.
Sasol [JSE:SOL] is still struggling with the lower oil price - although Thursday morning’s loss was only 0.67% - to trade at R432.60.
The Industrial index was virtually unchanged after adding 0.73% on Wednesday. The index is marginally shy of the technical area at 62 000 points. Imara SP Reid said the trading activity around this level confirms its importance and further structural improvement in industrial counters will only emerge following a break of this level.
SABMiller [JSE:SAB] improved by 0.75% to R600.88 but Naspers [JSE:NPN] lost 1.16% to trade at R1 493.48.
The Financial index improved by 0.51%. The share prices of some insurers, which were hit on Wednesday by Sanlam's announcement that earnings have been affected by weaker market conditions, recovered on Thursday.
Sanlam [JSE:SLM] gained 1.53% to R66.86 and Liberty [JSE:LBH] was 0.82% higher at R128.90. MMI Holdings [JSE:MMI] traded 0.81% stronger at R31.00.
Standard Bank [JSE:SBK] was one of the busiest shares on the JSE with 2.3 million shares being sold for more than R323.7m. The share price improved by 0.74% to R139.52.
Resources shares were therefore again the biggest losers on Thursday as the JSE’s top indices struggle to establish a solid foothold for future growth.
By midday on Thursday the Resources index was 1.68% lower than the day before, which pushed major indices moderately lower.
The All-share index was at that stage 0.21% lower at 49 753 points, while the Top 40 index lost 0.31% to 44 095 points.
Thursday’s losses are a slight setback as the Top 40 index is trying to move within range of the 200-day moving average of about 44 520 points.
The technical analysts of Imara SP Reid said a break beyond this level on brisk volume support would serve as a catalyst for further upside momentum and the general area beyond 45 000 points has taken on additional significance from a resistance perspective.
The dollar, boosted by more positive indicators about the American economy which pushed Wall Street to new record heights, also strengthened against the euro as investors await the outcome of the ECB meeting on monetary policy, which could lead to even more stimulatory measures to boost the struggling eurozone economy.
The two biggest double-listed heavyweights in the resources sector, Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL], gave back almost all the previous day's gains.
Anglo lost 2.46% to R225.37, which leaves it 21.3% lower over the last three months and now only 4% higher for the year. BHP Billiton, which lost 28% over the last three months, is already 13.9% softer for the year after losing another 1.81% to R61.72.
Sasol [JSE:SOL] is still struggling with the lower oil price - although Thursday morning’s loss was only 0.67% - to trade at R432.60.
The Industrial index was virtually unchanged after adding 0.73% on Wednesday. The index is marginally shy of the technical area at 62 000 points. Imara SP Reid said the trading activity around this level confirms its importance and further structural improvement in industrial counters will only emerge following a break of this level.
SABMiller [JSE:SAB] improved by 0.75% to R600.88 but Naspers [JSE:NPN] lost 1.16% to trade at R1 493.48.
The Financial index improved by 0.51%. The share prices of some insurers, which were hit on Wednesday by Sanlam's announcement that earnings have been affected by weaker market conditions, recovered on Thursday.
Sanlam [JSE:SLM] gained 1.53% to R66.86 and Liberty [JSE:LBH] was 0.82% higher at R128.90. MMI Holdings [JSE:MMI] traded 0.81% stronger at R31.00.
Standard Bank [JSE:SBK] was one of the busiest shares on the JSE with 2.3 million shares being sold for more than R323.7m. The share price improved by 0.74% to R139.52.
