• Not just Zuma's home

    Nkandla could be a great cultural heritage tourism site, argues Unathi Henama.

  • Retribution will come

    Those who now pay the price for opposing a corrupt system shall rise again, says Solly Moeng.

  • Ego - the enemy within

    Successful people are humble in their aspirations and resilient in failure, says Ian Mann.

All data is delayed
Loading...
See More

JSE sits out global rally

Jan 25 2016 13:56
David van Rooyen


Company Data

ASSORE LIMITED [JSE:ASR]

Last traded 148
Change 2
% Change 2
Cumulative volume 81276
Market cap 0

Last Updated: 30-09-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLO AMERICAN PLC [JSE:AGL]

Last traded 171
Change -2
% Change -1
Cumulative volume 4955140
Market cap 0

Last Updated: 30-09-2016 at 05:06. Prices are delayed by 15 minutes. Source: McGregor BFA

GLENCORE PLC [JSE:GLN]

Last traded 38
Change -1
% Change -3
Cumulative volume 9858659
Market cap 0

Last Updated: 30-09-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Rand steadies, rates decision in focus

JSE bounces back from lows

European stocks halt rally as oil producers fall

Yen ends drop as bullish bets reach 4-year high

Gold back in fashion after global equity decline

SHARE WATCH: 5 stock picks to keep your eye on

 

Johannesburg - The global mood continued to be positive on Monday morning as Asian markets moved further away from the four-year lows and possible bear markets reached last week. The JSE however did not join in the fun.

The big dual-listed commodity shares gave up a big part of the strong gains reached at the end of last week due to profit-taking. Shares like BHP Billiton [JSE:BHP], Anglo American [JSE:AGL] and Glencore [JSE:GLN] all lost more than 4% in early trade and at one stage their weight on the JSE pulled the Resources index more than 3% lower.

These shares were also sharply down in London, which stopped the rebound in European markets in its tracks after they made gains for first time in 2016 last week.

The result was that the All-share index was 0.11% lower at 47 611 points and the Top 40 index 0.35% weaker at 42 804 points.

The rand rallied on the back of the improved mood in world markets, trading at R16.47 to the dollar which helped the Financial index 0.62% higher. The Industrial index was virtually unchanged. By midday the Resources index was 2.52% softer but the Gold index traded 2.8% higher.

The lack of momentum on the JSE was particularly disappointing as the oil price, which was the main reason for the recent rout in share prices, continued its rally. The price of Brent crude rose above $32 per barrel as an icy spell in parts of the northern hemisphere pushed oil prices higher. The cold weather should increase the demand for oil.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5%, putting further distance between a four-year low plumbed last week.

Shanghai stocks added 1% and Tokyo's Nikkei, which slumped to a one-year low last week, rose 1.2%. Australian shares advanced 1.8% to a two-week peak.

On Friday, the S&P 500 rose 2% and the Dow added 1.3% on Friday as a cold snap in North America and Europe caused a rally in oil prices. The S&P energy sector surged 4.3%.

Analysts said the continued rise in share prices will depend on central banks delivering on expectations of more stimulatory measures.

Both the Federal Reserve and Bank of Japan hold policy meetings this week. Investors will look for any hints of when the Fed intends to make a second interest rate hike, while there is speculation that the BOJ could opt to take additional easing measures. Investors expect no action from the Fed or BOJ, although investors will be looking for a more dovish forward bias.

Resources shares will however remain under pressure as expectations are that commodity prices will not increase soon because of high overproduction levels.

BHP Billiton, one of the world’s top commodity producers, said last week that it did not expect the prices of iron and coal to recover in the next few years. At midday BHP Billiton was 2.85% lower at R152.24, but at one stage it dropped more than 4% to R147.70.

Anglo American reached another 52-week low on Monday morning when the share price dropped 5.96% to R52.90. The share has now lost 63.03% of its value over the past 90 days. Glencore was 4.70% softer at R18.65.

It is however interesting that investors are beginning to see value in some of the commodity shares that have been the hardest hit by the slump in commodity prices, particularly the iron producers Assore [JSE:ASR] and Kumba Iron Ore [JSE:KIO].

Assore gained 10.1% to R87.50 by midday on Monday after rising more than 40% over the previous seven days. Before the recovery, Assore dropped from a 52-week high of R179.60 to a low of R56 on January 12.

Kumba, which lost more than 80% of its value, was more than 20% higher over the past seven days before Monday’s trade. The pattern continued and the share price gained another 7.15% to R32.56 on Monday morning.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

equities  |  jse  |  markets

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you use all your downloaded apps on your smartphone?

Previous results · Suggest a vote

Loading...