The JSE was lower in line with the rest of the world on Friday
morning, as markets nervously await Sunday's crucial referendum in
Greece over its debt negotiations.
By midday the All-share index
was 0.37% lower at 52 022 while the Top 40 index traded 0.43% softer at
46 428. Most of the other major indices were also lower, although some
were only marginally softer.
With the New York market closed for a holiday, trading was also more subdued than normal.
The same happened elsewhere in the world with European shares edging down towards their biggest weekly fall in two months on Friday. By midday the FTSEurofirst 300 index was already 4.35% down for the week and set for its biggest weekly fall since late April.
Most markets in Asia were also softer, with the beleaguered Shanghai market another 3.5% lower.
Imara SP Reid said in its daily Market Snapshot on Friday that the weekend ahead presents a psychological hurdle for risk assets to clear.
The company said the situation in Greece continues to hang over the market, but it seems to have lost its ability to surprise. Any form of resolution will create an improvement in market tone, as indices in the US and Europe are modestly oversold, but it is doubtful if a resolution would lead to a sharp spike.
“In large measure the debt negotiations have created a general ‘malaise and drag’ on market tone rather than decisively influencing direction,” Imara said.
Indications are that the outcome of the referendum, which must decide if Greece accepts its creditors' demands for financial austerity, will be a close affair as the two campaigns are finely balanced.
After six months the All-share index on the JSE is about 3 000 points or 6% lower than the 52-week high reached on April 26 this year, but the index is still about 4 000 points or 8% higher than at the beginning of the year.
With the New York market closed for a holiday, trading was also more subdued than normal.
The same happened elsewhere in the world with European shares edging down towards their biggest weekly fall in two months on Friday. By midday the FTSEurofirst 300 index was already 4.35% down for the week and set for its biggest weekly fall since late April.
Most markets in Asia were also softer, with the beleaguered Shanghai market another 3.5% lower.
Imara SP Reid said in its daily Market Snapshot on Friday that the weekend ahead presents a psychological hurdle for risk assets to clear.
The company said the situation in Greece continues to hang over the market, but it seems to have lost its ability to surprise. Any form of resolution will create an improvement in market tone, as indices in the US and Europe are modestly oversold, but it is doubtful if a resolution would lead to a sharp spike.
“In large measure the debt negotiations have created a general ‘malaise and drag’ on market tone rather than decisively influencing direction,” Imara said.
Indications are that the outcome of the referendum, which must decide if Greece accepts its creditors' demands for financial austerity, will be a close affair as the two campaigns are finely balanced.
After six months the All-share index on the JSE is about 3 000 points or 6% lower than the 52-week high reached on April 26 this year, but the index is still about 4 000 points or 8% higher than at the beginning of the year.
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