On Tuesday morning the JSE's All-share index was lower for the sixth
consecutive day as investors came to terms with the reality of high
valuations amid slow economic growth and political uncertainties.
With
the prospect of higher interest rates in the US leading to a reversal
of the capital inflow into emerging markets, some portfolio managers are
now predicting very little growth in the equity market for the rest of
the year.
By midday on Tuesday the All-share index was 0.72% softer than the previous day at 53 596 points and the Top 40-index traded 0.74% lower at 47 490 point.
All the major indices were down with the Financial index losing 0.68% and the Industrial index 0.6, while the Resources index was 1.56% lower and the Gold index lost a substantial 2.9%.
The disappointing growth in the local gross domestic product of only 1.3% announced on Tuesday morning highlighted investors' growing concern about high valuations on the JSE which will not be supported by economic activity.
This is because businesses are battling to cope with electricity shortages, possible interest rate increases that will dampen consumers' spending power and growing uncertainty about government policies.
Vaughan Henkel, an investment strategist for Stanlib Asset Management, said in an interview with Bloomberg published on Tuesday morning that gains on the JSE are over for 2015, with no more returns seen for the South African market for the rest of the year.
By midday on Tuesday the All-share index was 0.72% softer than the previous day at 53 596 points and the Top 40-index traded 0.74% lower at 47 490 point.
All the major indices were down with the Financial index losing 0.68% and the Industrial index 0.6, while the Resources index was 1.56% lower and the Gold index lost a substantial 2.9%.
The disappointing growth in the local gross domestic product of only 1.3% announced on Tuesday morning highlighted investors' growing concern about high valuations on the JSE which will not be supported by economic activity.
This is because businesses are battling to cope with electricity shortages, possible interest rate increases that will dampen consumers' spending power and growing uncertainty about government policies.
Vaughan Henkel, an investment strategist for Stanlib Asset Management, said in an interview with Bloomberg published on Tuesday morning that gains on the JSE are over for 2015, with no more returns seen for the South African market for the rest of the year.
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