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Johannesburg - Investors on the JSE are waiting for new economic indicators, including the National Budget speech by Finance Minister Pravin Gordhan on Wednesday, but the major indices are still at record levels on Monday.
The All Share index, which closed on another record on Friday, started the day lower due to some profit-taking and weaker markets in the East, but recovered from these losses by midday.
The resources index was lower as investors are still worried about China’s economic prospects, but the All Share index was 62.42 points or 0.13% higher at 47 515 at midday and the Top 40-index trade 45.60 points or 0.11% higher at 42 999.
The resources index was 1.10% lower as South Africa’s mining companies are dependent on China to buy their commodities. The resources index is also overbought and analysts say that a correction is overdue.
The gold index was however slightly higher as the gold price improved with almost nine dollars to $1 333.40 at midday.
Analysts say investors did not expect major shocks from the budget speech on Wednesday, but economists warn that if it appears that the budget deficit is beginning to get out of control, it could have a detrimental effect on the value of the rand.
The rand held steady against the dollar on Monday, trading in a recent range as global risk aversion eased. Aversion to emerging market assets abated with some resolution to Ukraine's political crisis.
The currency was at R10.9640/$ at midday, not far off an R10.9350/$ close in New York on Friday. The unit has for several days traded near the R10.9000/$ resistance area that it needs to break to open up further gains away from R11/$.
The markets were also encouraged by happenings in Sydney at the weekend‚ when the Group of 20 (G20) said monetary policies in developed economies should remain supportive.
"All of the central banks at the meeting committed to carefully calibrated and communicated monetary policy and would be ‘mindful of impacts on the global economy when setting policy‚” Barclays said in A research note. However, it does not mean a change to the Federal Reserve’s tapering of its economic stimulus programme.
The heavyweights in the resources sector were sharply lower. Anglo American [JSE:AGL] lost 1.64% to R279.33 and rival BHP Billiton [JSE:BIL] was down 1.69% at R356.02. Among gold miners‚ Gold Fields [JSE:GFI]added 1.09% to R43.65 and Anglogold Ashanti [JSE:ANG] was 0.53% higher on R196.75.
Financial services group Nedbank climbed more than 3% after it reported on Monday a 15% rise in its diluted headline earnings per share to 1.829c for the year ended December 2013 from 1.590c a year ago.
Naspers [JSE:NPN]started the day lower after news that Koos Bekker resigned as CEO of the group and will be replaced by Bob van Dijk, an e-commerce specialist from the Netherlands, but by midday the share was 0.28% higher again at R1 275.00.
Naspers is one of the driving forces behind the industrial index which was 0.57% higher on 54 251. Imara SP Reid said in its market snapshot the index is approaching a very important resistance level at 55 000.
The All Share index, which closed on another record on Friday, started the day lower due to some profit-taking and weaker markets in the East, but recovered from these losses by midday.
The resources index was lower as investors are still worried about China’s economic prospects, but the All Share index was 62.42 points or 0.13% higher at 47 515 at midday and the Top 40-index trade 45.60 points or 0.11% higher at 42 999.
The resources index was 1.10% lower as South Africa’s mining companies are dependent on China to buy their commodities. The resources index is also overbought and analysts say that a correction is overdue.
The gold index was however slightly higher as the gold price improved with almost nine dollars to $1 333.40 at midday.
Analysts say investors did not expect major shocks from the budget speech on Wednesday, but economists warn that if it appears that the budget deficit is beginning to get out of control, it could have a detrimental effect on the value of the rand.
The rand held steady against the dollar on Monday, trading in a recent range as global risk aversion eased. Aversion to emerging market assets abated with some resolution to Ukraine's political crisis.
The currency was at R10.9640/$ at midday, not far off an R10.9350/$ close in New York on Friday. The unit has for several days traded near the R10.9000/$ resistance area that it needs to break to open up further gains away from R11/$.
The markets were also encouraged by happenings in Sydney at the weekend‚ when the Group of 20 (G20) said monetary policies in developed economies should remain supportive.
"All of the central banks at the meeting committed to carefully calibrated and communicated monetary policy and would be ‘mindful of impacts on the global economy when setting policy‚” Barclays said in A research note. However, it does not mean a change to the Federal Reserve’s tapering of its economic stimulus programme.
The heavyweights in the resources sector were sharply lower. Anglo American [JSE:AGL] lost 1.64% to R279.33 and rival BHP Billiton [JSE:BIL] was down 1.69% at R356.02. Among gold miners‚ Gold Fields [JSE:GFI]added 1.09% to R43.65 and Anglogold Ashanti [JSE:ANG] was 0.53% higher on R196.75.
Financial services group Nedbank climbed more than 3% after it reported on Monday a 15% rise in its diluted headline earnings per share to 1.829c for the year ended December 2013 from 1.590c a year ago.
Naspers [JSE:NPN]started the day lower after news that Koos Bekker resigned as CEO of the group and will be replaced by Bob van Dijk, an e-commerce specialist from the Netherlands, but by midday the share was 0.28% higher again at R1 275.00.
Naspers is one of the driving forces behind the industrial index which was 0.57% higher on 54 251. Imara SP Reid said in its market snapshot the index is approaching a very important resistance level at 55 000.
