Johannesburg - The JSE slipped into negative territory by noon on Thursday with resources leading the downside as participants sought to square positions and take profits ahead of this afternoon's interest rates decision.
By 11:55 the all share index was down 1.17%, resources lost 1.13% but gold stocks were up 1.32% and platinum stocks added 0.89%. Banks were off 2.59%, financials gave up 1.75% and industrials eased 0.85%.
The rand was last bid at 10.16 to the dollar from 10.17 when the JSE closed on Wednesday, while gold was last quoted at US$822.50 a troy ounce from $803.45/oz at the JSE's last close.
The platinum price was at $844.50/oz, up 2.12% from its previous close of $827/oz and Brent crude was at $43.14 per barrel from $42.40 before.
"Resources are leading the downside. After the recent rallies they are probably just taking a breather," an equities trader said.
"It might be a case of position squaring and profit taking ahead of the decision later today," he said.
"At the moment Dow futures are down, signalling a weaker opening in the US this afternoon," he pointed out.
He added that the rand was fairly stable and that should the dollar continue to weaken we may see further strengthening of the rand.
While the outcome of the week's Monetary Policy Committee (MPC) meeting is likely to be a close call, the consensus is for South Africa's repo rate to be cut by 50 basis points to 11.5%, a survey of leading economists by I-Net Bridge shows.
Of the 16 economists polled, nine are expecting a 50 basis point
reduction, while two are expecting a cut of 100 basis points. Five economists spoken to expect rates to remain unchanged.
Earlier, the Nikkei up 0.7% but the Hang Seng was last down 0.4%.
Dow Jones Newswires reports that European stocks headed south, dragged lower by mining stocks as base metals prices fall back again on slowing demand from China.
In London, the FTSE was last down 0.30%.
US stocks are seen falling at the open with expectations of another choppy session, says Marko Jagustin, trader at GFT Global Markets.
He calls the DJIA to open down 75 points and the S&P 500 down 9.5 points.
- I-Net Bridge