Why the JSE closed 0.47% lower on Tuesday November 4th
Johannesburg (Sunburst Africa) -Stocks on the JSE fell on Tuesday following a downward trend in commodity prices which currently stands at a three year low. The benchmark Top-40 index fell 0.57 percent to 44 451 and the broader All-Share index dropped 0.47% to 49 788, undoing two straight sessions of gains. Global markets also closed lower. In Asia, shares were down to a five day low following a strength in the Japanese Yen, and falling oil prices, the S&P 500 also closed down following oil price weakness.
Figure 1: JSE All Share 4th November
Enough of bad news, domestic bullion companies got a lift from technical factors and a ratings upgrade for Africa’s top producer, AngloGold Ashanti.
One would continue to watch the JSE today as markets in Asia are currently trading lower today tracking the negative sentiments from the strength in the Yen and low oil prices. Economic data expected out of South Africa tomorrow include manufacturing utilization of production capacity and electricity generation and available for distribution. Markets may not be strongly moved by this data as expectations about electricity generation and distribution are already in the market following the announcement from Eskom on load shedding. One should also expect marginal improvement in the factory utilization of manufacturing production capacity and this should also have mild effects on the market. Investors will continue to watch global markets.