Why the JSE Fell to a Two-month Intraday Low Yesterday
By Sunburst Staff
THE JSE All-Share Index fell to a two-month intraday low on Wednesday. The fall was mainly due to the continuing sell-off in the resources and banking sectors. Among top losers of the day were Mediclinic International Ltd (JSE Code: MDC) down 2.9 percent, Aspen Pharmacare Hldgs L (JSE Code: APN) down 2.8 percent, Anglogold Ashanti Ltd (JSE Code: ANG) down 1.7 percent, Code: IPL) and Life Healthc Grp Hldgs L (JSE Code: LHC). Overall the all share was off 0.46% at 52,718.70 points in early afternoon trade, with the blue-chip top 40 index losing 0.41%. There was a general weakness in commodity prices, with the platinum spot back to March 31 lows at $1,118.50 per ounce, partly because of the stronger dollar environment.
Outside South Africa, Wall Street traded higher on economic data that points to a higher probability of a rate hike this year. The Dow traded in the green by +0.60%, while the S&P 500 traded +0.50% higher, and NASDAQ traded +0.73% up. Asian markets closed higher for a ninth straight day with gains limited by fears of U.S rate hike. The Nikkei closed +0.17% higher, while the Hang Seng closed lower by -0.60%. European indices traded higher on hopes of a new deal between Greece and its creditors. The DAX traded higher by +1.22%, while the CAC 40 was higher by +1.97% and the FTSE 100 traded +1.31% higher. At local close Oil (Brent) traded lower by -1.21% at $62.95 while Gold traded higher by +0.08% at $1188.70. The dollar traded 0.05% weaker against the EURO at EUR/USD $1.0878. On the local front the All Share index closed lower by -0.06%, while the rand traded 0.24% weaker against the dollar at R/USD 12.1131.