MICHAEL METELITS, Johannesburg | Monday 5.30pm.
NO news is apparently slightly bad news, as the lack of market-shaking announcements saw most JSE indices and bonds move mildly lower on Monday.
While economic data is due for release on Tuesday, caution and slow trading atmosphere kept any movements marginal on the JSE. Andile Mazwai of Barnard Jacobs Mellet says “there was some profit-taking in the information technology sector, and some revision in the resources sector” during the session.
The all share index slipped only 9 points to lose 0,12%, while industrials managed to lose 0,67% or 48 points. Financials remained weak, closing below 9000 after losing 55 points or 0,61%. Mazwai says traders are beginning to think the index is losing too much ground, and that it may be undervalued at current levels.
All gold grabbed 15 points or 1,56% on the day, primarily due to a 50 cent increase in the bold price and the announcement of a 30 cent dividend for Gold Fields, which Mazwai says is 5 cents better than market predictions.
Bonds slipped mildly as well, as the benchmark R150 stayed in its range, although at the low end, closing at 14,55% after finishing last week at 14,54%.
No news was definitely no news for the rand, which ended at R6,09 to the dollar, firmly within recent trading ranges.
Asia shot through the roof on Monday, as Tokyo’s Nikkei-225 picked up 320 points or 1,82%, while the Hang Seng in Hong Kong made 2,28% off 306 points.
London’s FTSE-100 was closed for a bank holiday, while other European markets were mixed. Frankfurt’s DAX dumped 31 points by close of business in Johannesburg to lose 0,57%, while Paris’ CAC-40 rose 15 points or 0,33%.
Wall Street flip-flopped on opening, starting slightly up and standing at 10 points down at 11:30am New York time, or close of business in Johannesburg.