Share

JSE up on Greece deal hopes

Johannesburg - Share prices on the JSE opened sharply higher on Friday morning, supported by the continuing recovery on the Chinese markets and new hopes of a deal with Greece.

However, the initial euphoria did not last long as investors decided to take a wait-and-see attitude. By mid-morning all the major indices were still higher than the previous day, but the gains at that stage were much more modest than earlier in the day.

It was unsure what would happen the rest of the day as the intraday graphs of most indices showed a distinct downward pattern.

The final outcome of the day’s trading will probably depend on what happens on Friday afternoon when Wall Street opens. Share prices of the major companies were also mostly higher, but lower than the levels reached earlier in the day.

The All-share index opened more than 500 points or over 1% higher on Friday morning, but by mid-morning the index was only 0.43% stronger at 51 675 points. The Top 40-index was at that stage only 0.44% stronger at 46 073 points.

The star performer was the Resources index, supported by marginal improvements in commodity prices. The index gained 1.23% and the Gold index was 0.67% higher, but still below the psychological level of 1 000 points.

When the market opened on Friday morning sentiment on world markets was positive, with the Asian markets higher. There was a firm upward move in US futures and the European markets were also decisively stronger.

The correction of the Chinese markets also continued on Friday and by mid-morning they were heading for the biggest two-year gain in history, as new support measures by the Chinese governments put an end to panic selling.

READ: Asia markets up on Greece hopes, China rebound

Shanghai's benchmark Composite index was at that stage 5.3% higher, while the CSI 300 index of the largest listed companies in Shanghai and Shenzhen added 6%.

Sentiment on Greece was also remarkably better after Greece announced new proposals to try and convince its creditors to give the embattled country a new lifeline in the form of a bailout package.

The Greek government will have to ask for parliament's approval on Friday for the new package, which is probably why the market adopted a wait-and-see attitude.

The new set of proposals was similar to the one presented by the European Commission on June 26. It includes creditors’ long-standing demands for sales tax increases and cuts in public spending on pensions. Greece also proposes the restructuring of its debt and a package of growth measures of €35bn.

READ: Greece sends reform plan to EU promising new tax hikes

A good example of how the euphoria cooled down on Friday morning is Naspers [JSE:NPN], which by mid-morning was 0.32% lower at R1 817.21, after opening more than 1% higher at R1 855.

Among the other top shares Sasol [JSE:SOL] gained 0.71% to R426.00 and Steinhoff [JSE:SHF] rose 0.39% to R76.27.
Sanlam [JSE:SLM] was one of the busiest shares on Friday and more than 2.3 million shares were traded for over R165m. The share price was 1.4% higher at R70.07.

Among the banking shares FirstRand [JSE:FSR] gained 1.52% to R53.81, but Standard Bank [JSE:SBK] was at that stage 1.04% lower at R157.27.

Among the top resources shares BHP Billiton [JSE:BIL] was a solid 1.97% higher at R237.91 while Anglo American [JSE:AGL] gained 0.82% to R167.60. One of the star performers was Merafe Resources [JSE:MRF] which traded 7.79%  higher at 83c.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders