Publications
Partners
Johannesburg - The JSE sank on Monday on the back of a combination of consolidation and renewed concerns over European debt woes.
The market could be consolidating following strong runs in the past few months, a trader said, noting that domestic share such as retailers and banks had all edged lower.
At 17:00 local time, the JSE all share index was down 0.72%, with industrials shedding 1.30%, banks falling 0.89% and financials sliding 0.76%. Resources slid 0.10% and gold miners lost 0.43%, but platinum bucked the trend among mining shares, gaining 0.14%.
The rand was trading at 6.85 to the dollar from 6.78 at the JSE's close on Friday. Gold was quoted at US$1 369.50 a troy ounce from US$1 373.32/oz at the JSE's previous close, while platinum was at $1 744.00/oz from $1 736.00/oz.
European stocks dropped a bit amid talks that Portugal might seek bailout funds, sparking some risk-aversion.
Dow Jones Newswires reported that US stocks opened lower on Monday as worries mounted that Portugal could become the next stressed European country to request a bailout and investors fretted that the euro-zone debt crisis could continue to spread.
The Dow Jones Industrial Average sank 60 points, or 0.5%, to 11 615.
With no US economic data on Monday, the market's focus turned toward Europe.
The euro touched a four-month low against the dollar after German media reported over the weekend that France and Germany were pressuring Portugal to accept an Ireland-type bailout package from the International Monetary Fund and the European Union. Officials in Germany and France denied the report, but fears grew that Portugal and Spain could follow Greece and Ireland in requesting financial aid from international lenders.
