The JSE opened markedly lower on Monday, tracking global markets as the Greek contagion hits emerging market stocks.
The All-share index gave up 1.43% to 51 226 points, with internet giant Naspers [JSE:NPN] the biggest drag.
Naspers, which has about 12% weighting in the Industrial index, was among the biggest losers, giving up 4.5% to R1 825 [at 10:20 on Monday] as Hong Kong-listed Tencent, in which Naspers has a 34% stake, slumped 9.5%.
The Industrial index was down 1.5% at 66 096 points. Mining stocks Northam Platinum (-1.17%) [JSE:NHM] and Assore (-4.13%) [JSE:ASR] added to the JSE's pain as at 10:20.
The Greeks voted an overwhelming “no” to the austerity measures suggested by Greece’s creditors in a blitz referendum on Sunday. The vote now raises concerns that Greece may fall deeper into turmoil while it tries to prevent a financial system collapse.
"With the onus now on the
Greek government to make the next move, the emergency summit of European
leaders takes place tomorrow," Shireen Darmalingam, macroeconomic
analyst at Standard Bank, said in a research note on Monday.
“Focus will be on how the Greek government plans to stabilise the country. The Greek government has said all along that it wants to remain a member of EMU [Economic and Monetary Union],” said Darmalingam.
Bloomberg reported on Monday that emerging-market stocks fell the most in two years and currencies tumbled on concern that Greece’s rejection of austerity will spur its exit from the euro area, damping demand for riskier assets.
The MSCI Emerging Markets Index lost 2.5% to 940.52 at 06:35 in Hong Kong, wiping out this year’s advance.
A gauge of Hong Kong-traded Chinese companies plunged 5% and South Korean shares headed for the steepest loss since 2012.
The rand also felt the brunt, giving up almost 0.5% to trade at R12.36/$ at 09:59.
"The rand is likely to remain under pressure today; tactically we would continue to approach the currency from the short side against the dollar. Support for the USDZAR is at 12.3500, 12.2800/2500, 12.2100 and 12.1350; resistance is at 12.4050, 12.4800, 12.6500 and 12.800," according to Standard Bank.
Naspers, which has about 12% weighting in the Industrial index, was among the biggest losers, giving up 4.5% to R1 825 [at 10:20 on Monday] as Hong Kong-listed Tencent, in which Naspers has a 34% stake, slumped 9.5%.
The Industrial index was down 1.5% at 66 096 points. Mining stocks Northam Platinum (-1.17%) [JSE:NHM] and Assore (-4.13%) [JSE:ASR] added to the JSE's pain as at 10:20.
The Greeks voted an overwhelming “no” to the austerity measures suggested by Greece’s creditors in a blitz referendum on Sunday. The vote now raises concerns that Greece may fall deeper into turmoil while it tries to prevent a financial system collapse.
“Focus will be on how the Greek government plans to stabilise the country. The Greek government has said all along that it wants to remain a member of EMU [Economic and Monetary Union],” said Darmalingam.
Bloomberg reported on Monday that emerging-market stocks fell the most in two years and currencies tumbled on concern that Greece’s rejection of austerity will spur its exit from the euro area, damping demand for riskier assets.
The MSCI Emerging Markets Index lost 2.5% to 940.52 at 06:35 in Hong Kong, wiping out this year’s advance.
A gauge of Hong Kong-traded Chinese companies plunged 5% and South Korean shares headed for the steepest loss since 2012.
The rand also felt the brunt, giving up almost 0.5% to trade at R12.36/$ at 09:59.
"The rand is likely to remain under pressure today; tactically we would continue to approach the currency from the short side against the dollar. Support for the USDZAR is at 12.3500, 12.2800/2500, 12.2100 and 12.1350; resistance is at 12.4050, 12.4800, 12.6500 and 12.800," according to Standard Bank.
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