Money SA economy
The JSE galloped close to 600 points weaker on Tuesday amid global slowdown concerns and investors have woken up on Wednesday to find the negative vibe has continued. But there is a smidgen of good news - bargain hunters may enter at some point to buy shares at the cheaper prices.
At 9.25am local time the JSE all share index had shed 0.28%, with platinum counters down 0.89%. However, gold miners bucked the trend to gain 0.62%. Banks were down 0.16% and financials by 0.07%, while industrial counters lost 0.13%. The total resources index was 0.47% lower. Gold was quoted at $1 242.80/oz from $1 234.90/oz at the JSE's previous close, while platinum was at $1 539.00/oz from $1 543.50/oz at the JSE's last close.
Ferdi Heyneke, a portfolio manager at Afrifocus, feels that while investors are looking for a reason to sell again, volatility remains in play and some bargain hunters may well buy into the dips.
He noted that Dow futures are up slightly, but quickly adds that Eastern markets are down and the euro and rand remain under pressure.
The picture is therefore mixed for gold stocks, but there is interest in retailers and small bank Capitec (rather than the big banks) as well as any stocks offering dividend opportunities, due to interest rates being low.
Early trade also indicates a little interest in media company Naspers, which had shed R3.99 on Tuesday as results only hit a mid-range note with investors.
Asian stocks fell on Wednesday, tracking sharp Wall Street declines overnight, amid mounting fears of a double-dip recession in the global economy. Exporters in Japan were hit hard by the yen's recent strength against the euro.
European bourses are expected to be mixed on Wednesday, as investors remain cautious following falls in the U.S. and Asia, although higher US futures point to an improvement later in the day and the euro has strengthened somewhat.
