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Johannesburg - A promising start to the New Year on the JSE lasted about 90 minutes on Friday morning before the market turned south again, and by midday most of the gains of the brisk opening were lost.
More negative news about the Chinese economy has dampened sentiment towards riskier emerging markets once again, and share prices soon followed the rand lower.
READ: Emerging market sentiment weakens rand
About 90 minutes after the opening the All-share index, which gained about 7% in 2014, traded well above the 50 000 points level at 50 500. However, it then dropped sharply before stabilising at just above Wednesday's closing levels by midday, when it was only 0.12% stronger at 49 830. The Top 40 index, which ended the previous day 6% higher, at that stage was 0.21% higher at 44 061.
On Thursday China, the world's number two economy and a major trading partner for South Africa, said its official purchasing managers' index slipped to 50.1 in December, the lowest level of 2014. The rand responded to the news in New York by weakening more than half a percentage point.
Signs that the giant Asian economy's growth is cooling could see a decline in demand for metals and minerals, of which South Africa is a major exporter. Demand is already lower, with the November trade figures showing that domestic exports to Asia had tumbled by more than R16bn.
The resources index at one stage was more than 1% stronger than the previous close, but at midday it traded only 0.44% higher as some big shares gave up part of their original gains.
Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL] both were about 2% higher than on Wednesday shortly after the opening, but by midday Anglo American traded only 0.32% higher at R216.01 after at one stage reaching R220. BHP Billiton reached a high of R254.20 but at midday was only 0.51% higher at R249.94.
Sasol [JSE:SOL[, which is struggling with the price of Brent crude still at around $57.00 per barrel, gained about 1.2% in early trade but by midday it was also only 0.51% stronger at R43 321.
In the Industrial index, which was only 0.19% stronger by midday, SABMiller [JSE:SAB] also gave up gains of almost 1% to trade 1.11% lower at 598.65. Earlier it reached R611.11.
Naspers [JSE:NPN] bucked the trend with steady gains and traded 1.21% stronger at R153 350, within reach of its all-time high of R1 555.00.
Among the shares that started the year on a 52-high is Astral [JSE:ARL], which gained 2.02% to reach a new high of R178.43. The share is now 68.2% stronger than a year ago.
Zeder [JSE:ZED], which ended the year on a 52-week high, gained another 3.58% to trade at R7.82 and is now 74.4% higher for the past 12 months.
More negative news about the Chinese economy has dampened sentiment towards riskier emerging markets once again, and share prices soon followed the rand lower.
READ: Emerging market sentiment weakens rand
About 90 minutes after the opening the All-share index, which gained about 7% in 2014, traded well above the 50 000 points level at 50 500. However, it then dropped sharply before stabilising at just above Wednesday's closing levels by midday, when it was only 0.12% stronger at 49 830. The Top 40 index, which ended the previous day 6% higher, at that stage was 0.21% higher at 44 061.
On Thursday China, the world's number two economy and a major trading partner for South Africa, said its official purchasing managers' index slipped to 50.1 in December, the lowest level of 2014. The rand responded to the news in New York by weakening more than half a percentage point.
Signs that the giant Asian economy's growth is cooling could see a decline in demand for metals and minerals, of which South Africa is a major exporter. Demand is already lower, with the November trade figures showing that domestic exports to Asia had tumbled by more than R16bn.
The resources index at one stage was more than 1% stronger than the previous close, but at midday it traded only 0.44% higher as some big shares gave up part of their original gains.
Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL] both were about 2% higher than on Wednesday shortly after the opening, but by midday Anglo American traded only 0.32% higher at R216.01 after at one stage reaching R220. BHP Billiton reached a high of R254.20 but at midday was only 0.51% higher at R249.94.
Sasol [JSE:SOL[, which is struggling with the price of Brent crude still at around $57.00 per barrel, gained about 1.2% in early trade but by midday it was also only 0.51% stronger at R43 321.
In the Industrial index, which was only 0.19% stronger by midday, SABMiller [JSE:SAB] also gave up gains of almost 1% to trade 1.11% lower at 598.65. Earlier it reached R611.11.
Naspers [JSE:NPN] bucked the trend with steady gains and traded 1.21% stronger at R153 350, within reach of its all-time high of R1 555.00.
Among the shares that started the year on a 52-high is Astral [JSE:ARL], which gained 2.02% to reach a new high of R178.43. The share is now 68.2% stronger than a year ago.
Zeder [JSE:ZED], which ended the year on a 52-week high, gained another 3.58% to trade at R7.82 and is now 74.4% higher for the past 12 months.
