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Johannesburg - Share prices consolidated on the JSE on Friday morning, after a week in which the market lost almost half of last year's gains in a single day on Monday and then rallied to recover those losses by the end of the week.
On Friday morning all the indices were modestly lower, with resources the best performer of all as speculators use opportunities to enter the market or take profits.
The high-flyers of the week were mostly slightly lower by midday on Friday as profit-taking was taking place, while some of those who reached lows this week recovered slightly as investors saw opportunities.
The indices dropped initially and then moved mostly sideways for the rest of the morning. The All-share index was 0.47% lower at 49 636 and the Top 40-index traded 0.49% points lower at 43 455.
The Financial index lost 0.77% and the Industrial index 0.57%, while the Gold index, the big achiever of the past few days, was 1.25% weaker.
The Resources index was only 0.03% softer as the big loser earlier in the week, Sasol [JSE:SOL], recovered somewhat.
Friday morning's slight correction was mostly technical by nature, as the market fundamentals seemed reasonably sound with world markets generally stronger on Friday morning.
International markets were supported by a steady oil price and growing confidence that the European Central Bank would soon announce more measures to stimulate the European economy.
The only negative news is the announcement that local business confidence slumped to its worst in five months, driven lower by concerns over electricity shortages and a recurrence of labour tensions.
The market took the news in its stride on Thursday as the All-share index gained more than 1%. The rand also strengthened against the dollar early on Friday, while bond yields continued to fall as some investors pushed back the timing of an interest rate hike in the United States.
Oil prices, which have fallen more than 50% since June, rose slightly for the second day in a row. Investors have worried that crashing crude prices could be a sign of weakening growth.
Among the local shares which were severely hit by the 55% oil price tumble, Sasol [JSE:SOL] traded 2% higher than the 52-week low reached on Thursday to trade at R395.56. On Thursday Sasol was already 10% lower for the year.
BHP Billiton [JSE:BIL], also an oil producer which was at a 52-week low of R234.26 on Monday, improved on Friday morning to R244.79 before starting to lose steam again. By midday it was 0.58% lower than Thursday's closing price at R241.55.
The share price of iron producer Assore [JSE:ASR], which has lost more than 60% of its value over the last six months, was also volatile on Friday morning. At one stage it traded at R137.80, but by midday it was again at a new low of R136.79, 0.26% softer than Thursday's low.
Anglo American [JSE:AGL], which was also on a new low of R202.36 on Monday, hit R207.94 at one stage on Friday before profit-takers stepped in. By midday the share price was 1.4% softer at R203.04.
Naspers [JSE:NPN], the star performer of the market so far this year with gains of more than 10%, also consolidated on Friday morning. By midday it was at R1 659.22, 1.66% lower than Thursday's all-time high of R1 687.22.
