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Johannesburg - Emerging markets are again on the unwanted list as investors, spooked by the renewed crisis in the Ukraine, are fleeing to safer havens including the dollar.
However, if it were not for sharp drops in the price of banking shares due to profit taking after last week's rally, the JSE survived the new wave of risk aversion quite well on Monday.
By midday, the major indices were virtually unchanged and it was only the financial index which lost significant ground. The JSE All-share index was only 0.09% lower on 47 972 points and the Top 40-index traded only 0.02% lower on 43 106 points. The major loser was the Financial 15-index which lost 1.21% in morning trade to 13 242 points.
The Industrial index was marginally higher and the other indices were mostly slightly lower.
The major victim of the new wave of risk aversion was the rand which traded above R10.53/$ after reaching a new high of R10.39 over the weekend.
The weaker rand is the result of a stronger dollar due to new uncertainties about the Ukraine crisis, and talks that the European central bank is planning to slacken monetary policy even further which put pressure on the euro.
European Central Bank officials over the weekend expressed unhappiness with a strong currency, saying it may require accommodative monetary policy.
The Ukraine crisis was on the forefront again, with the Ukraine government giving pro-Russian separatists a Monday morning deadline to disarm or face a "full-scale anti-terrorist operation" by its armed forces.
Russia has amassed 35 000 to 40 000 troops near the Ukrainian border in addition to the 25 000 troops it recently moved into Crimea. As the crisis worsens, the United States may step up sanctions. Separately, EU foreign ministers will meet on Monday to discuss how to toughen sanctions against Russia.
Amongst the major banking shares, Standard Bank [JSE:SBK], Nedbank [JSE:NED] and FirstRand [JSE:FSR], which have all reached new highs last week, Standard Bank was the biggest loser with a drop of 2.40% to R137.52.
Nedbank was 1.72% lower on R217.00 while First Rand lost 0.89% to R36.83.
Retail shares were in the news last week and Pick n Pay [JSE:PIK] traded 2.07% higher at R22.65 after a trading update that indicated a rise of more than 8% in sales. Massmart [JSE:MSM], which dropped sharply on Friday on the news that Grant Pattison resigned as chief executive shortly after the resignation of Mark Lamberti as chairperson, lost another 1.33% to R132.65.
Naspers [JSE:NPN], which is under severe pressure from a worldwide selloff in technology shares, stabilised somewhat and by midday was trading 0.31% higher on R1069.55.
The trading week will be shortened by Easter national holidays in South Africa on Friday and Monday, and dealers expect low volumes to bring extra volatility to the markets.
However, if it were not for sharp drops in the price of banking shares due to profit taking after last week's rally, the JSE survived the new wave of risk aversion quite well on Monday.
By midday, the major indices were virtually unchanged and it was only the financial index which lost significant ground. The JSE All-share index was only 0.09% lower on 47 972 points and the Top 40-index traded only 0.02% lower on 43 106 points. The major loser was the Financial 15-index which lost 1.21% in morning trade to 13 242 points.
The Industrial index was marginally higher and the other indices were mostly slightly lower.
The major victim of the new wave of risk aversion was the rand which traded above R10.53/$ after reaching a new high of R10.39 over the weekend.
The weaker rand is the result of a stronger dollar due to new uncertainties about the Ukraine crisis, and talks that the European central bank is planning to slacken monetary policy even further which put pressure on the euro.
European Central Bank officials over the weekend expressed unhappiness with a strong currency, saying it may require accommodative monetary policy.
The Ukraine crisis was on the forefront again, with the Ukraine government giving pro-Russian separatists a Monday morning deadline to disarm or face a "full-scale anti-terrorist operation" by its armed forces.
Russia has amassed 35 000 to 40 000 troops near the Ukrainian border in addition to the 25 000 troops it recently moved into Crimea. As the crisis worsens, the United States may step up sanctions. Separately, EU foreign ministers will meet on Monday to discuss how to toughen sanctions against Russia.
Amongst the major banking shares, Standard Bank [JSE:SBK], Nedbank [JSE:NED] and FirstRand [JSE:FSR], which have all reached new highs last week, Standard Bank was the biggest loser with a drop of 2.40% to R137.52.
Nedbank was 1.72% lower on R217.00 while First Rand lost 0.89% to R36.83.
Retail shares were in the news last week and Pick n Pay [JSE:PIK] traded 2.07% higher at R22.65 after a trading update that indicated a rise of more than 8% in sales. Massmart [JSE:MSM], which dropped sharply on Friday on the news that Grant Pattison resigned as chief executive shortly after the resignation of Mark Lamberti as chairperson, lost another 1.33% to R132.65.
Naspers [JSE:NPN], which is under severe pressure from a worldwide selloff in technology shares, stabilised somewhat and by midday was trading 0.31% higher on R1069.55.
The trading week will be shortened by Easter national holidays in South Africa on Friday and Monday, and dealers expect low volumes to bring extra volatility to the markets.
