JSE loses steam at midday, lags behind world markets
The JSE’s early momentum had evaporated by lunchtime on Monday, signalling a degree of caution heading into the ANC’s national executive committee meeting, which is set to finalise President Jacob Zuma’s future as head of state.
The rand was also somewhat stronger on the day, which had a deleterious effect on some of the big rand hedges.
The all share was flat at 55,936.30 points at midday, lagging behind other world equity markets, which were substantially higher.
Shares in Resilient and those within its stable came under pressure following the release of two negative research reports on the property group, accusing it of questionable deals that artificially boosted the share prices of related companies.
Resilient slumped 8.68% to R98.63, Nepi Rockcastle 9.21% to R126.20 and Greenbay Properties 7.22% to R1.67.
Miners, generally, managed to keep their heads above water, thanks to a small pick-up in commodity prices, which was the result of a slightly weaker dollar.
Banks were patchy after a fairly strong start to the session, while insurance stocks managed to hold onto earlier gains.
Europe’s leading shares markets were higher at midday, rebounding from the rout of the previous week, which sent some of the benchmark indices to multi-week lows.
US stock futures indicated that Wall Street would likely open higher, after suffering steep losses over the past week.
"Nobody knows if this is just a healthy correction or if the long-running bull market has come to an end and we are now finding ourselves in a full-blown bear market," said Christo Krog, analyst at Rand Swiss.
Kumba Iron Ore was up 2.43% to R338.80, Assore 2.44% to R300.40 and African Rainbow Minerals 1.97% to R137.96. But AngloGold Ashanti lost 1.72% to R117.42.
Pressure continued to build on Steinhoff, with its shares dropping another 2.86% to R5.77, while Massmart rose 1.56% to R135.53.
Vodacom gained 1.82% to R161.82 and Blue Label Telecoms 1.95% to R11.48.
Investment group Remgro rose 2.09% to R220.77 but Reinet dropped 2.03% to R242.33.