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Johannesburg - Share prices on the JSE again moved sideways on Wednesday morning, as newly-released local data confirmed what everyone is suspecting – the economy is in dire straits.
The rand, which dropped sharply on Tuesday after the release of the latest shocking employment figures, stabilised against a wobbly dollar on Wednesday, but overall sentiment on the markets remained subdued.
The softer rand, which traded at R13.00 to the dollar, did not provide much support for the dual-listed shares which earn most of their income abroad in foreign currencies and therefore earn more in rand if the currency is weak.
The result was that the All-share index was almost unchanged at midday, losing only 0.11% to 51 377 points by mid-morning, while the Top 40 index was only 0.10% softer at 45 244 points.
The Financial index gained 0.30%, but the Industrial index - which includes most of the big dual-listed shares - was 0.36% lower. The resources sector was 0.8% stronger, but a mixed bag with the Gold index losing 0.37%.
Statistics South Africa announced on Tuesday that employment in South Africa’s non-agriculture sector fell by 0.5% to 9.64 million people in the first quarter of 2017, compared with the previous three months. Almost 50 000 jobs were lost in the first quarter.
READ: Employment declines for the quarter
More local economic data will be released this week and investors will also keep an eye on the ANC’s policy conference this weekend, where controversial proposals on the economy are on the agenda.
The Financial index was mixed, with Standard Bank [JSE:SBK] going up but Barclays Africa [JSE:BGA] and FirstRand [JSE:FSR] losing ground. Standard Bank was 0.98% stronger at R143.80, but Barclays Africa shed 0.74% to R145. FirstRand lost 0.25% to R47.48.
Most of the financial shares hardly moved this week, as investors are seeking the sidelines until there is better economic news.
Insurance shares performed better. Sanlam [JSE:SLM] traded 0.91% higher at R65.42 and Old Mutual [JSE:OML] gained 1.11% to R32.87.
Naspers [JSE:NPN] lost 1.84% to R2 560.07, but other giants such as Richemont [JSE:CFR] and British American Tobacco [JSE:BTI] traded higher. Richemont gained 0.63% to R108.08 and British American Tobacco was 0.50% stronger at R301.00.
Among the commodity giants BHP [JSE:BIL] gained 0.73% to R195.20, but Anglo American [JSE:AGL] lost 0.47% to R167.11.
