JSE weaker as it takes cue from shaky global markets

The JSE weakened further on Tuesday‚ taking its lead from shaky global markets.

The 167-member all share index was off 1.27% to 49‚337.90 points in early afternoon trade‚ after closing out August with a 4% loss.

Investors moved out of financial and industrial sectors into gold equities‚ which rallied 2.31% to build on their 23% gain in August.

The outsized gains in the gold sector‚ off a low base‚ coincided with a recent pick-up in gold prices.

Markets remained concerned about the pace of global growth‚ which was reinforced by China’s disappointing purchasing managers index data for August.

Nedbank Capital‚ however‚ said in a note that the panic over China’s economy appeared “overblown”.

story_article_left1

“Although growth is slowing faster than expected‚ especially in the industrial sector‚ which is both hurting global demand for and adding to excess capacity in many commodities‚ the transition to greater consumption continues.”

Europe’s leading stock markets were down in excess of 2% at midday after a sharply weaker session in Asia where the Japan’s Nikkei 225 dropped 3.84%.

US stock futures pointed to a weaker session on Wall Street later in the day.

Among some individual shares‚ Glencore was down 5.57% to R28.99‚ while ArcelorMittal SA recovered 4.62% to R10.42. Harmony Gold rallied 5.94% to R11.95.

Media and internet group Naspers slid 3.62% to R1‚656.73.

- BDlive