Publications
Partners
Johannesburg - The JSE edged down in early trade on Monday
morning before creeping into the black within the first half hour of opening.
At the open, a local trader said: "We're slightly
weaker this morning as expected after weaker overall world markets and the
rating downgrades in Europe."
However, trade soon moved into the black, which the trader
attributed to a strong performance by Richemont [JSE:CFR] and a weaker rand.
Not much in the way of volume was expected as the US market
was closed for a public holiday.
At 09:29 local time, the JSE All Share [JSE:J203] index had
lifted 0.15%. Gold miners generated 0.31%, resources gathered 0.15% while
platinums were flat (0.08%).
Industrials collected 0.28%, financials rose 0.11%, while banks were static at 0.06%.
The rand was bid at R8.14 to the dollar from R8.03 at the
JSE's close on Friday. Gold traded at $1 642.81 a troy ounce from $1 634.12 at
the JSE's previous close, while platinum was quoted at $1 495/oz, from $1
475.50/oz at the previous close.
Dow Jones Newswires reported that Asian stock markets are
falling as market sentiment has weakened significantly after Standard &
Poor's lowered its ratings on nine eurozone nations late on Friday, while the
euro has hit a fresh 11-year low against the Japanese yen.
Standard & Poor's late on Friday lowered its ratings on
nine eurozone nations including triple-A rated France and Austria, citing
insufficient policy initiatives by European leaders to address ongoing systemic
stresses in the eurozone. While the downgrades didn't come as much of a
surprise they served as a sharp reminder that Europe's ongoing sovereign-debt
crisis is far from being resolved and could raise questions over the triple-A
status of the European Financial Stability Facility.
Germany retained its triple-A rating, but Italy, Spain,
Portugal and Cyprus all saw their ratings cut two notches. Malta, Slovakia and
Slovenia were all cut by one notch.
France's rating - widely considered vital to the European
Financial Stability Facility keeping its own triple-A rating - was cut to
double-A-plus, one notch below the coveted top level. S&P will conclude a
review on the EFSF's rating in the coming week.
European stocks are seen lower, bunds and gilts seen higher, the euro weaker, sterling stronger, oil and gold higher.
