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Johannesburg - The JSE inched lower in morning trade on Wednesday as falling commodity prices continued to weigh on the local bourse, reflecting a similarly sour mood on the global market.
The dollar has strengthened against a basket of currencies, hitting commodity prices which in turn have dragged down resources stocks, a trader said. Commodities also dropped due to profit-taking.
The rand was weaker in Wednesday morning trade on the continued strength of the dollar.
It was bid at R6.67/$ from R6.66/$ at its previous close. It was bid at R8.89 against the euro from R8.79 before and at R10.40 against sterling from R10.37 at its previous close.
The euro was bid at $1.32 from its close of $1.33.
"The rand is drifting weaker ... We've seen rand strength through December and now guys are taking a few profits in anticipation of importer demand," said Michael Keenan, head of forex research at Standard Bank.
He added that there was a growing view the dollar would make a few strides if data coming out of the US continued to be favourable.
The JSE All-share index was down 0.38%, with platinum miners declining 1.04% and resources shedding 0.54%. Gold miners bucked the trend, rising 0.54% after slumping 3.56% on Tuesday.
Banks lost 0.51%, financials slipped 0.24% and industrials fell 0.29%. Gold was quoted at $1 382.60 per ounce from $1 388.91/oz atthe JSE's close, while platinum was at $1 736.50/oz from $1 756.50/oz before.
Dow Jones Newswires reported that Asian stock markets were mostly lower, with resource stocks losing ground due to weakness in gold and oil prices on Tuesday.
Japan's Nikkei Stock Average lost 0.17% and in Hong Kong, the Hang Seng was last 0.06% lower.
"Profit-taking is hitting resource stocks, such as oil and metal companies. But the further downside in the sector will likely be limited because of the recovering global economy," said Zhang Xiang, an analyst at Guodu Securities in Beijing.
Commodities shares are under pressure and could help drag European markets slightly lower at the start.
The dollar has strengthened against a basket of currencies, hitting commodity prices which in turn have dragged down resources stocks, a trader said. Commodities also dropped due to profit-taking.
The rand was weaker in Wednesday morning trade on the continued strength of the dollar.
It was bid at R6.67/$ from R6.66/$ at its previous close. It was bid at R8.89 against the euro from R8.79 before and at R10.40 against sterling from R10.37 at its previous close.
The euro was bid at $1.32 from its close of $1.33.
"The rand is drifting weaker ... We've seen rand strength through December and now guys are taking a few profits in anticipation of importer demand," said Michael Keenan, head of forex research at Standard Bank.
He added that there was a growing view the dollar would make a few strides if data coming out of the US continued to be favourable.
The JSE All-share index was down 0.38%, with platinum miners declining 1.04% and resources shedding 0.54%. Gold miners bucked the trend, rising 0.54% after slumping 3.56% on Tuesday.
Banks lost 0.51%, financials slipped 0.24% and industrials fell 0.29%. Gold was quoted at $1 382.60 per ounce from $1 388.91/oz atthe JSE's close, while platinum was at $1 736.50/oz from $1 756.50/oz before.
Dow Jones Newswires reported that Asian stock markets were mostly lower, with resource stocks losing ground due to weakness in gold and oil prices on Tuesday.
Japan's Nikkei Stock Average lost 0.17% and in Hong Kong, the Hang Seng was last 0.06% lower.
"Profit-taking is hitting resource stocks, such as oil and metal companies. But the further downside in the sector will likely be limited because of the recovering global economy," said Zhang Xiang, an analyst at Guodu Securities in Beijing.
Commodities shares are under pressure and could help drag European markets slightly lower at the start.
