JSE weaker as investors lose their appetite for risk

The JSE was weaker on Thursday morning as a bearish sentiment permeated global markets.

The sell-off in other global markets is due to falling oil prices‚ concern about slowing growth in China and other emerging markets and the Federal Reserve raising interest rates.

The risk-off sentiment was felt across Asian equity markets. The Japanese Nikkei 225 was down 2.43% at the close‚ the Hong Kong Hang Seng index fell 1.30% and China’s Shanghai Composite lost 3.23%.

At 9.50am local time‚ Brent crude had lost 0.58% to $27.63 a barrel after falling more than 3% on Wednesday.

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At 9.33am‚ the JSE all share was down 0.34% at 46‚173.10 points and the blue-chip top 40 index had lost 0.40%.

Gold miners led the upside‚ adding 2.33%‚ followed by resources‚ adding 1.12%‚ while financials were down 0.69%.

Barclays Research analysts said oil prices remained low in morning trade after hitting levels last seen in 2003 on Wednesday. Both West Texas Intermediate (WTI) and Brent were trading around $28 as broader market sentiment remained bearish as a result of elevated supply and inventory levels‚ the analysts said.

Meanwhile‚ US data showed moderate inflation and Barclays cut its US fourth-quarter gross domestic product (GDP) growth forecast to 0.5%. Headline inflation slowed 0.1% in December‚ slightly below expectations.

The European Central Bank (ECB) policy statement after its meeting on Thursday was likely to contain more dovish language‚ but Barclays did not expect president Mario Draghi to announce further stimulus measures.

Among individual shares on the JSE‚ Anglo American added 1.54% to R54.12 after plunging by more than 7% on Wednesday. Rival BHP Billiton was up 3.01% at R142.22.

Sasol lost 0.69% to R358.22 as oil prices languished at 12-year lows.

AngloGold Ashanti was up 2.31% at R136.36 and Gold Fields added 2.48% to R53.21.

Discovery was down 0.42% at R115.66 and Sanlam lost 0.56% to R53.55.

- TMG Digital/BDlive