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Johannesburg - The major indices on the JSE hardly moved on Friday as investors seem to be in a holiday mood.
Most international markets were also treading water except for the European markets, which surged higher on suggestions that an interest hike in the US is still on the cards for this year.
“With equities having sold off following the Fed's decision to leave rates on hold last week, the bullish market reaction suggests investors would prefer the Fed to get on with it and raise rates sooner rather than later," said Mike van Dulken, analyst at Accendo Markets trading group.
By midday the All-share index was only 0.07% higher at 50 414 points, while the Top 40 index lost 0.03% to 45 047 points. Of the other indices the Financial index was marginally lower (0.19) while the Industrial index gained only 0.34%. The share prices of many of the top shares hardly moved.
The Resources index was just more than 1% lower, with conglomerates like Anglo American [JSE:AGL] and Glencore [JSE:GLN] again under pressure, but the volatile Gold index gained 4.26% after sharp losses earlier this week.
The only financial news of note was comments by US Federal Reserve chairperson Janet Yellen, who said on Thursday she still expects to increase interest rates in 2015 and that concerns about weaker global growth were unlikely to affect this.
Her remarks came a week after the US central bank opted at a widely anticipated meeting against enacting the first rate hike in nearly 10 years.
Following the September 17 meeting, Yellen told a news conference that the committee decided to hold off raising rates owing to worries about slowing growth in China and capital flight from emerging markets.
Emerging markets can be severely affected by any interest rate increase as this incentivises investors to return capital to the developed world, where risks are perceived to be lower.
The All-share index initially strengthened but then lost ground before recovering somewhat and moving slowly higher again. The index traded in a range of about 300 points, or 0.7%.
Glencore was again the biggest loser in the resources sector and at midday was at a new 52-week low after losing 7.27% to R21.44. The share is now more than 35% lower than a month ago.
Anglo American was also one of the big losers among the top double-listed shares on Friday when it traded 4.03% lower at a new 52-week low of R133.24. The share was under pressure the past week and lost 8.7% over the past seven days. It lost 29.2% of its value over the past 90 days.
Anglo American’s two listed investments in South Africa, Anglo American Platinum (Amplats) [JSE:AMS] and Kumba [JSE:KIO], were also under pressure on Friday morning after losing ground over the past few days. At midday Amplats, which lost 8.7% over the past seven days, was another 2.62% weaker at R254.64. Kumba has also been under renewed pressure over the past seven days and lost 9.42%; by midday it traded another 3.42% lower at R83.51.
In the industrial sector Tiger Brands' [JSE:TBS] share price rose to a four-month high on news that its CEO Peter Matlare will leave South Africa’s largest food producer after presiding over declining profit and a write-down in the value of the company’s Nigerian unit.
The search for a successor has begun, the Johannesburg-based maker of Tastic Rice and Jungle Oats said in a statement on Friday, without giving further details. The stock gained as much as 5.7% to R312.99, the highest since May 20, and traded 5.07% higher at R311 at midday.
Sappi [JSE:SAP] made a strong recovery on Friday morning and at midday was 3.15% higher at R40.62 after losing more than 17% over the past 90 days.
