JSE weaker on consolidationComment on this story
The JSE opened slightly softer on Monday morning on the back of some consolidation after last week’s good gains.
“Two major players Anglo American and Kumba Iron Ore are both trading ex-dividend‚ which is dragging the index down a bit. Chinese export figures were also a major disappointment‚” said Drikus Combrinck‚ portfolio manager at PSG Konsult in Pretoria.
Chinese exports rose 1.0% in July from a year earlier‚ worse than June's 11.3% rise. Imports rose 4.7% from a year earlier‚ down from the 6.3% rise in June.
At 9.34am local time the JSE all-share index had dropped 0.31% to 35‚464.21 points‚ with platinums leading the downside (-0.71%). Eastern and European markets were also weaker with the Hong Kong Hang Seng Index 0.22% weaker just before the close and the London FTSE 100 was last seen 0.21% softer.
Absa Capital said in a morning note that Friday’s Chinese trade data and this morning’s Japanese GDP data clearly indicated that the global economic recovery remained extremely fragile‚ which could restrict further risk appetite‚ unless the market believes that these disappointing data will actually prompt the authorities to inject further stimulus into the system.
Japan reported a lower-than-expected second quarter GDP print‚ with the economy growing at a below-expected 1.4% annualised rate in the second quarter of this year. On Tuesday the gross domestic product figures from Europe are due‚ with a decline of 0.3% expected.
“This week it is quiet on the local data front‚ with only retail sales for June released on Wednesday. After a 6.4% year-on-year increase in May we expect retail sales growth to have slowed to 3% year on year in June‚ partly owing to lower consumer confidence during the quarter.” the bank said.
Among local movers‚ Anglo American (AGL) was down R3.50‚ or 1.35%‚ at R256.00 and Kumba Iron Ore (KIO) shed R19.98‚ or 3.65%‚ at R527.52.
Among platinum counters‚ Amplats (AMS) lost R4.86‚ or 1.12%‚ to R428.14‚ while Northam Platinum (NHM) added 69 cents‚ or 2.65%‚ to R26.76. - I-Net Bridge