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Johannesburg - The JSE followed world markets lower on Monday on the back of a tumbling oil price, but the losses were again moderate. The major indices moved mostly sideways in morning trade after initial losses.
Even the resources sector, which would normally have been severely affected by the lower oil price as well the stronger dollar which strengthened further against the yen, was marginally higher by mid-morning.
At that stage the All-share index was only 0.12% lower at 52 973 points after losing almost 0.8% in early trade. The Top 40 index traded only 0.14% down at 46 699 points.
The rand initially fell more than 1% to R14.75 to the dollar in early trade in line with the tumbling oil price, but recovered all those losses by mid-morning. At that stage the currency traded at R14.61 to the dollar.
READ: Rand tumbles as oil prices fall
The tumbling oil price knocked Asian shares on Monday after producers failed to agree on a plan to curb the global supply glut, while shares in Tokyo and the yen skidded as investors assessed the impact of a devastating earthquake in southwestern Japan. By mid-morning the European markets were also moderately lower.
Some 18 oil exporting nations, including Opec members, had gathered in Doha, the capital of Qatar, over the weekend in an attempt to stabilise output at January levels until October 2016. The pact fell apart after Saudi Arabia demanded that Iran join in.
By mid-morning the price of North Sea Brent had dropped more than 4% to only $41.38 a barrel. Sasol [JSE:SOL] was one of the busiest shares on the JSE and at one stage traded as low as R426.00, more than 5% weaker. By mid-morning the share price recovered and was only 1.72% lower at R440.76.
At that stage the Financial index traded 0.53% lower and the Industrial index was 0.15% down. The Resources index was however 0.30% higher and the Gold index 1.05% stronger, with DRDGold [JSE:DRD] trading 4.48% up at a new 52-week high of R6.70 after reaching as high as R7.00.
Market sentiment towards emerging markets was not affected by political developments in Brazil, whose President Dilma Rousseff lost a crucial impeachment vote in the lower house of Congress on Sunday and appears almost certain to be forced from office.
Brazil's stocks and currency have been among the world's best-performing assets in recent weeks on growing bets that Rousseff would be removed from office, allowing her successor to adopt more market-friendly policies. A Tokyo-listed exchange-traded fund of Brazilian equities was up 4.5%.
The two biggest commodity shares on the JSE were both higher, continuing their strong run of last week. Anglo American [JSE:AGL], which gained 26.7% over the previous seven days, was 0.91% higher at R148.29. BHP Billiton [JSE:BIL] was stronger at R187.60 after gaining 18.7% over the previous seven days.
Tha financial sector was a mixed bag, with Standard Bank [JSE:SBK] 1.98% lower at R125.94 but FirstRand [JSE:FSR] trading 1.20% stronger at R47.20. Both shares gained more than 6% last week.
There seems to be much interest in retail shares with stocks like Pick n Pay [JSE:PIK], Truworths [JSE:TRU] and Spar [JSE:SPP] all testing new 52-week highs. In early trade Truworths went as high as R107.44, well above the 52-week high of R105.75, but then lost ground and at mid-morning was trading 0.45% lower at R105.27.
Spar also set a new intraday high of R213.47 before it lost momentum to trade 0.05% softer at R211.19. Pick n Pay, which set a new 52-week high of R71.79 last week, traded 0.33% stronger at R70.95.
