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Johannesburg - The JSE was up at midday on Monday, but analysts said this does not mean the markets are not nervous ahead of the US Federal Reserve’s policy meeting on Wednesday and Thursday.
The major indices all opened stronger on Monday morning but then started to move gradually lower, giving up almost half of the gains recorded in early trade.
Over the last few days the local market has fallen into a pattern of starting strongly and then moving aimlessly along for most of the day, indicating jitters ahead of the Fed meeting.
The strong opening was expected as analysts said Friday’s drop below 49 000 points was overdone, but share prices and the rand are sure to come under renewed pressure ahead of important meetings this week.
By midday the All-share index was 0.61% higher at 49 230 points, but shortly after the opening it was more than 1% stronger at 49 583 points before losing momentum. The intraday graph of the Top 40 index looks exactly the same as the All-share index, and by midday it was 0.62% higher at 43 719 points.
The Industrial index was at that stage 0.50% higher and the Financial index had gained 0.40%, with the more volatile Resources index performing stronger. Resources gained 1.71%, while the Gold index made up some of last week's losses by regaining 4.42%.
Emerging markets - and in particular the vulnerable South African market - are nervous about the prospect of US interest rates rising, as it will draw investment away from these high-yield markets back to the developed world, which is regarded as less risky.
Emerging markets, and in particular those relying on commodities, are already under pressure as an economic slowdown in China has also dampened exports to the world's second-largest economy, with a devastating effect on commodity prices.
It seems there are some bargain hunters around as two of the big losers of recent times, Trans Hex [JSE:TSX] and Altron [JSE:AEL], both made strong recoveries. Trans Hex was a massive 9.76% higher at R2.59 after the share lost 8.88% over the past seven days and 24.36% over the past 30 days.
Before Monday, Altron was trading 42.6% lower than three months ago, but the share price gained 7.46% to R8.50. Altron is currently in negotiations to sell its Autopage subscriber base.
Sibanye Gold [JSE:SGL], which announced plans last week to take over the Rustenburg mines of Anglo American Platinum [JSE:AMS], is still on a roll. It rose 6.22% to R19.42 on Monday morning, after gaining more than 12% over the previous seven days.
Steinhoff [JSE:SHF] reached yet another high as it edged up 0.91% to R82.85, after the share earlier traded as high as R83.40. Iliad [JSE:ILA], which will soon be taken over by Steinhoff, is also on the up and set a new 52-week high of R9.76, 0.62% higher than Friday. The share gained 21.25% over the past three months after the deal with Steinhoff was announced.
Property shares, which did not move much over the past three months because of expectations of higher interest rates, were among the busiest shares on Monday. Growthpoint [JSE:GRT] lost 1.76% to R25.15 and Emira [JSE:EMI] traded 1.101% weaker at R16.73. Redefine [JSE:RDF] was however 1.31% stronger at R11.60.
The major indices all opened stronger on Monday morning but then started to move gradually lower, giving up almost half of the gains recorded in early trade.
Over the last few days the local market has fallen into a pattern of starting strongly and then moving aimlessly along for most of the day, indicating jitters ahead of the Fed meeting.
The strong opening was expected as analysts said Friday’s drop below 49 000 points was overdone, but share prices and the rand are sure to come under renewed pressure ahead of important meetings this week.
By midday the All-share index was 0.61% higher at 49 230 points, but shortly after the opening it was more than 1% stronger at 49 583 points before losing momentum. The intraday graph of the Top 40 index looks exactly the same as the All-share index, and by midday it was 0.62% higher at 43 719 points.
The Industrial index was at that stage 0.50% higher and the Financial index had gained 0.40%, with the more volatile Resources index performing stronger. Resources gained 1.71%, while the Gold index made up some of last week's losses by regaining 4.42%.
Emerging markets - and in particular the vulnerable South African market - are nervous about the prospect of US interest rates rising, as it will draw investment away from these high-yield markets back to the developed world, which is regarded as less risky.
Emerging markets, and in particular those relying on commodities, are already under pressure as an economic slowdown in China has also dampened exports to the world's second-largest economy, with a devastating effect on commodity prices.
It seems there are some bargain hunters around as two of the big losers of recent times, Trans Hex [JSE:TSX] and Altron [JSE:AEL], both made strong recoveries. Trans Hex was a massive 9.76% higher at R2.59 after the share lost 8.88% over the past seven days and 24.36% over the past 30 days.
Before Monday, Altron was trading 42.6% lower than three months ago, but the share price gained 7.46% to R8.50. Altron is currently in negotiations to sell its Autopage subscriber base.
Sibanye Gold [JSE:SGL], which announced plans last week to take over the Rustenburg mines of Anglo American Platinum [JSE:AMS], is still on a roll. It rose 6.22% to R19.42 on Monday morning, after gaining more than 12% over the previous seven days.
Steinhoff [JSE:SHF] reached yet another high as it edged up 0.91% to R82.85, after the share earlier traded as high as R83.40. Iliad [JSE:ILA], which will soon be taken over by Steinhoff, is also on the up and set a new 52-week high of R9.76, 0.62% higher than Friday. The share gained 21.25% over the past three months after the deal with Steinhoff was announced.
Property shares, which did not move much over the past three months because of expectations of higher interest rates, were among the busiest shares on Monday. Growthpoint [JSE:GRT] lost 1.76% to R25.15 and Emira [JSE:EMI] traded 1.101% weaker at R16.73. Redefine [JSE:RDF] was however 1.31% stronger at R11.60.
