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Johannesburg - The JSE closed relatively firmer on Wednesday as the market attempted to recover from the previous day’s bloodbath that saw the All Share index fall more than 3%.
The industrial index led the local bourse higher despite disappointing retail sales data that saw the general retail index shedding 1.60%.
At 17:00‚ the all share index was up 0.37% to 39 766.53 points‚ industrial shares gained 0.85%‚ while mining counters remained under pressure.
“The market recovered slightly from yesterdays big fall which was quite unusual for it to drop by as much as 3%. We’re still below the 40 000 mark although not too far from the record high‚ said Wayne McCurrie from Momentum Asset Management.
He added that the market was still overpriced and that it would not be surprising for the market to weaken as it did during Tuesday’s session.
Among mining shares‚ both the gold and platinum index edged lower‚ falling 0.30% and 0.28% respectively. Resource counters closed 0.33% down.
“Miners have been under severe pressure for a long time now due to worries that Chinese growth is slowing‚ said McCurrie.
All the major retailers were down‚ with Woolworths [JSE:WHL] leading the pack with a 2.67% fall to R61.66. Mr Price [JSE:MPC] lost 2.41% to R117.20‚ with Clicks [JSE:CLS] dropping 1.37% to R53.85.
“The sell-off of retail shares comes from the disappointing local retail sales number but that’s not the only reason retailers are down‚” said Francois Venter‚ an equity dealer at Investec Asset Management.
Because of the weaker rand‚ there was a possibility that interests could begin to rise again towards the end of the year or early next year, he said.
Retail trade sales measured in constant (2012) prices increased by 1.9% year on year (y/y) in April from a revised 2.7% (2.8%) y/y increase in March‚ figures from Statistics SA showed on Wednesday. Measured in real terms‚ seasonally adjusted retail trade sales fell by 0.6% in April compared with March following month-on-month changes of -1.3% in March and 2.3% in February.
The banking index was relatively flat‚ however‚ Absa [JSE:ASA] closed in the red‚ falling 0.93% to R138.70. FirstRand [JSE:FSR] nudged up 0.49% to close at R26.50‚ while Capitec [JSE:CPI] finished the session 0.79% higher at R183.91.
The industrial index led the local bourse higher despite disappointing retail sales data that saw the general retail index shedding 1.60%.
At 17:00‚ the all share index was up 0.37% to 39 766.53 points‚ industrial shares gained 0.85%‚ while mining counters remained under pressure.
“The market recovered slightly from yesterdays big fall which was quite unusual for it to drop by as much as 3%. We’re still below the 40 000 mark although not too far from the record high‚ said Wayne McCurrie from Momentum Asset Management.
He added that the market was still overpriced and that it would not be surprising for the market to weaken as it did during Tuesday’s session.
Among mining shares‚ both the gold and platinum index edged lower‚ falling 0.30% and 0.28% respectively. Resource counters closed 0.33% down.
“Miners have been under severe pressure for a long time now due to worries that Chinese growth is slowing‚ said McCurrie.
All the major retailers were down‚ with Woolworths [JSE:WHL] leading the pack with a 2.67% fall to R61.66. Mr Price [JSE:MPC] lost 2.41% to R117.20‚ with Clicks [JSE:CLS] dropping 1.37% to R53.85.
“The sell-off of retail shares comes from the disappointing local retail sales number but that’s not the only reason retailers are down‚” said Francois Venter‚ an equity dealer at Investec Asset Management.
Because of the weaker rand‚ there was a possibility that interests could begin to rise again towards the end of the year or early next year, he said.
Retail trade sales measured in constant (2012) prices increased by 1.9% year on year (y/y) in April from a revised 2.7% (2.8%) y/y increase in March‚ figures from Statistics SA showed on Wednesday. Measured in real terms‚ seasonally adjusted retail trade sales fell by 0.6% in April compared with March following month-on-month changes of -1.3% in March and 2.3% in February.
The banking index was relatively flat‚ however‚ Absa [JSE:ASA] closed in the red‚ falling 0.93% to R138.70. FirstRand [JSE:FSR] nudged up 0.49% to close at R26.50‚ while Capitec [JSE:CPI] finished the session 0.79% higher at R183.91.
