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Johannesburg - The serious profit-taking on the JSE that some technical analysts have been predicting for a while now started in earnest on Tuesday morning.
The major indices were more than 1.5% down by midday, giving up all the gains of the past few days.
At that stage the All-share index was again far below 53 000 points, trading 1.57% lower at 52 531 points while the Top 40 index was 1.74% softer at 47 129 points. The Top 40 index has reached the significant support level of 47 200 points and more losses can be expected if it does not settle above this level soon.
The technical analysts of Imara SP Reid said in their daily market report that a number of near-term metrics are exhibiting gradual evidence of deterioration and the level of 47 200 points will be seriously tested.
As expected, the Resources index was again the biggest loser after a promising start on Monday petered out towards the end of the day. The index closed only 0.7% higher after starting the day more than 3% higher.
Imara SP Reid said generalised selling pressure (in the presence of the firmer dollar) continues to be the dominant trading characteristic of the sector for now. There is little support from precious metals and a conservative approach will be needed as long as the resilient dollar undermines the near-term technical picture for the sector.
By midday the resources sector was 3.92% lower, with high-profile shares like Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL] distinctly lower.
At one stage Anglo American was as low as R104.90 which is more than 8% below the previous day’s close, but it recovered somewhat and at midday was only 5.79% softer on a yet another 52-week low of R107.40.
Anglo American’s share price made a few gallant efforts to launch a recovery run over the past few weeks, but gave the gains away when profit-takers used any form of strength to lock in profits. The result was that the share price moved only 1.23% down over the past 30 days, after losing 34% over the past 90 days and more than 46% for the year to date.
Anglo American’s two listed subsidiaries in South Africa, Anglo American Platinum (Amplats) [JSE:AMS] and Kumba [JSE:KIO], are also trading at 52-week lows. By midday Kumba was 7.96% lower at R50.66; the share has now lost 8.14% over the past week and 27.53% over the past month. Amplats was 4.75% softer on R204.74.
Lonmin [JSE:LON], which announced on Monday that it will issue new shares at a discount of 94% for only 1 pence, paid a heavy price for that decision on Tuesday morning. The share lost 32.52% to a new low of only R2.20, and that after it lost 39.5% of its value over the previous seven days. The stock is now more than 90% lower than a month ago.
BHP Billiton, which is far more stable than most of the other major resources shares, also set a new 52-week low of R202.49 after losing 3.05% in morning trade. BHP Billiton is only 16% lower for the year to date, after losing 6.5% over the past week and 12.9% over the past month.
The financial sector was 1.37% down with Old Mutual [JSE:OML] losing 1.86% to R43.27. Among the banks FirstRand [JSE:FSR] traded 1.14% lower at R50.21 and Standard Bank [JSE:SBK] lost 1.12% at R139.60.
The heavyweights in the industrial sector, which was 1.45% lower by midday, all traded down on Tuesday morning. By midday Naspers [JSE:NPN] lost 0.81% to R2 072.97 and SABMiller was 0.48% lower at R855.71. British American Tobacco [JSE:BTI] lost 0.68% to R810.75. All three shares are however very near their all-time highs.
Richemont [JSELCFR], which announced disappointing results recently, lost 1.38% to R113.46.
The major indices were more than 1.5% down by midday, giving up all the gains of the past few days.
At that stage the All-share index was again far below 53 000 points, trading 1.57% lower at 52 531 points while the Top 40 index was 1.74% softer at 47 129 points. The Top 40 index has reached the significant support level of 47 200 points and more losses can be expected if it does not settle above this level soon.
The technical analysts of Imara SP Reid said in their daily market report that a number of near-term metrics are exhibiting gradual evidence of deterioration and the level of 47 200 points will be seriously tested.
As expected, the Resources index was again the biggest loser after a promising start on Monday petered out towards the end of the day. The index closed only 0.7% higher after starting the day more than 3% higher.
Imara SP Reid said generalised selling pressure (in the presence of the firmer dollar) continues to be the dominant trading characteristic of the sector for now. There is little support from precious metals and a conservative approach will be needed as long as the resilient dollar undermines the near-term technical picture for the sector.
By midday the resources sector was 3.92% lower, with high-profile shares like Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL] distinctly lower.
At one stage Anglo American was as low as R104.90 which is more than 8% below the previous day’s close, but it recovered somewhat and at midday was only 5.79% softer on a yet another 52-week low of R107.40.
Anglo American’s share price made a few gallant efforts to launch a recovery run over the past few weeks, but gave the gains away when profit-takers used any form of strength to lock in profits. The result was that the share price moved only 1.23% down over the past 30 days, after losing 34% over the past 90 days and more than 46% for the year to date.
Anglo American’s two listed subsidiaries in South Africa, Anglo American Platinum (Amplats) [JSE:AMS] and Kumba [JSE:KIO], are also trading at 52-week lows. By midday Kumba was 7.96% lower at R50.66; the share has now lost 8.14% over the past week and 27.53% over the past month. Amplats was 4.75% softer on R204.74.
Lonmin [JSE:LON], which announced on Monday that it will issue new shares at a discount of 94% for only 1 pence, paid a heavy price for that decision on Tuesday morning. The share lost 32.52% to a new low of only R2.20, and that after it lost 39.5% of its value over the previous seven days. The stock is now more than 90% lower than a month ago.
BHP Billiton, which is far more stable than most of the other major resources shares, also set a new 52-week low of R202.49 after losing 3.05% in morning trade. BHP Billiton is only 16% lower for the year to date, after losing 6.5% over the past week and 12.9% over the past month.
The financial sector was 1.37% down with Old Mutual [JSE:OML] losing 1.86% to R43.27. Among the banks FirstRand [JSE:FSR] traded 1.14% lower at R50.21 and Standard Bank [JSE:SBK] lost 1.12% at R139.60.
The heavyweights in the industrial sector, which was 1.45% lower by midday, all traded down on Tuesday morning. By midday Naspers [JSE:NPN] lost 0.81% to R2 072.97 and SABMiller was 0.48% lower at R855.71. British American Tobacco [JSE:BTI] lost 0.68% to R810.75. All three shares are however very near their all-time highs.
Richemont [JSELCFR], which announced disappointing results recently, lost 1.38% to R113.46.
