JSE slips a little as investors eye the end of 2020
The JSE weakened in broad-based gains on Monday morning, amid month-end flows as December approaches, with some investors possibly looking to book in their profits.
At the JSE’s open on Monday the all share had risen almost 12% so far in November, which has proved to be a good month, amid a wave of positive news regarding a possible Covid-19 vaccine and hopes of additional stimulus measures from major economies.
Infection numbers continue to rise however, while there is still some political uncertainty in the US, where a Senate runoff early in 2021 in Georgia could determine the balance of power in the US Senate.
“And as we move through what looks to be a Covid-infused December of despair for growth, especially as the Georgia runoff becomes increasingly focused, more investors will be forced to cut and run, especially as everyone will be protecting year-end performance,” said Axi chief global markets strategist Stephen Innes in a note.
In morning trade the all share was down 0.88% to 57,311.41 points, while the top 40 had fallen 0.89%.
Banks were down 2.65% and the life insurance index 2.46%, while gold miners had risen 1.02%.
Gold was 0.58% weaker at $1,779.03/oz while platinum had fallen 0.76% to $957.15. Brent crude was 1.34% lower at $47.06 a barrel.
At 9.27am the rand was 0.17% weaker at R15.2798/$, 0.16% down at R18.2823/€, and 0.53% softer at R20.3908/£.
In morning trade Christo Wiese’s industrial holding company Invicta was up 8.01% to R17, saying earlier that it managed to grow profits even amid revenue pressure in its six months to end-September and management focus on cost containment.
Industrial processing, distribution and services group Barloworld was down 2.17% to R70.44, having reported earlier that revenue fell 17% in its year to end-September, with the group opting not to declare a dividend.
Source: businesslive.co.za
