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Johannesburg - The JSE was lower in line with the rest of the world on Friday morning, as markets nervously await Sunday's crucial referendum in Greece over its debt negotiations.
By midday the All-share index was 0.37% lower at 52 022 while the Top 40 index traded 0.43% softer at 46 428. Most of the other major indices were also lower, although some were only marginally softer.
With the New York market closed for a holiday, trading was also more subdued than normal.
The same happened elsewhere in the world with European shares edging down towards their biggest weekly fall in two months on Friday. By midday the FTSEurofirst 300 index was already 4.35% down for the week and set for its biggest weekly fall since late April.
Most markets in Asia were also softer, with the beleaguered Shanghai market another 3.5% lower.
Imara SP Reid said in its daily Market Snapshot on Friday that the weekend ahead presents a psychological hurdle for risk assets to clear.
The company said the situation in Greece continues to hang over the market, but it seems to have lost its ability to surprise. Any form of resolution will create an improvement in market tone, as indices in the US and Europe are modestly oversold, but it is doubtful if a resolution would lead to a sharp spike.
“In large measure the debt negotiations have created a general ‘malaise and drag’ on market tone rather than decisively influencing direction,” Imara said.
Indications are that the outcome of the referendum, which must decide if Greece accepts its creditors' demands for financial austerity, will be a close affair as the two campaigns are finely balanced.
After six months the All-share index on the JSE is about 3 000 points or 6% lower than the 52-week high reached on April 26 this year, but the index is still about 4 000 points or 8% higher than at the beginning of the year.
The JSE’s improved performance on Thursday stemmed mostly from the Resources index which gained 1.1%, but on Friday morning resources were again another 0.90% lower. The Industrial index lost 0.40% with the Financial index only 0.04% softer.
Imara SP Reid said Thursday’s upside momentum in the resources sector was insufficient to adjust the negative technical picture for short-term indicators. Further residual selling pressure is indicated for resource counters. In the very short term the sector will continue its attempt to build support at the level of around 38 000 points. By midday on Friday it traded at 38 389 points.
Platinum shares in particular are incredibly oversold, but these shares should only be used for-short term trading opportunities as there is no evidence of a reversal in the medium-term trend.
Impala Platinum [JSE:IMP] lost another 1.64% to R50.90 on Friday morning to trade at another 52-week low. The share price is now 27.7% weaker for the first half of the year and 54.1% softer for the past 12 months.
Anglo American Platinum [JSE:AMS] is now 20.41% softer for the past six months and 46.6% for the year, after it gained only 0.09% in morning trade to R265.32.
The downturn in the commodity cycle has hit Anglo American [JSE:AGL] harder than any of the other double-listed commodity giants. On Friday the share traded at a new 52-week low of R172.30 after losing another 1.96%. A year ago the stock traded as high as R295.56. That means it lost 37.3% of its value over the past 12 months and 13.21% over the past six months.
BHP Billiton [JSE:BIL] traded 1.83% lower at R239.28. The share did better than Anglo American over the past six months and gained 4%, but it is still 24.1% lower.
The big industrial shares delivered mixed results. Naspers [JSE:NPN], which gained more than 28% over the first six months of the year, was 1.32% lower at R1 914.29. Steinhoff [JSE:SHF], another top performer which gained 31.5% in the first half of the year, traded 0.73% lower at R75.95. Sasol [JSE:SOL] lost 0.96% to R443.59 but is still 10% higher for the year so far.
SABMiller [JSE:SAB] hardly moved and gained only 0.11% to R639.26, 8% higher than six months ago. British American Tobacco [JSE:BTI] gained 8.85% so far this year and traded 0.63% higher at R672.00.
Richemont [JSE:CFR] hardly moved in the first six months of the year (only 0.79% higher) and was also static on Friday morning, losing 0.39% to R100.07.
