Johannesburg - The JSE slipped back into negative territory on Wednesday morning as gold counters took a knock after the gold price took another overnight hit due to concerns over possible US monetary tapering.
At 9:16‚ the All Share [JSE:J203] index was 0.39% softer at 38 335.94 points‚ after closing more than 1% higher on Tuesday‚ ending a four-day losing streak on better global sentiment.
Gold counters were the biggest losers‚ with the index shedding 3.52% as the gold price dropped 2.20%‚ quoted at $1 248.75/oz at 9:16.
Resources gave back 1.32% and platinums lost 1.2%.
In the East‚ the Japanese Nikkei 225 ended 1.04% softer‚ while the Hong Kong Hang Seng Index managed some upside‚ trading 1.79% firmer shortly before its close‚ after recent major losses.
Rand Merchant Bank said in a morning note that Tuesday’s strong US data‚ with better-than-expected gains in housing sales/prices‚ consumer confidence and durable goods orders‚ had helped bring some calm to global markets.
“This positive response to the data is in itself noteworthy as the
‘taper tantrum’ that we have seen over the past month was an assessment
that good data was bad for markets because of what it implied for US
Federal Reserve (Fed) policy.
"That some normality seems to be returning hints that the Fed’s policy change is now‚ at least partially‚ priced in‚” RMB said.
“International central banks are doing their part in trying to calm
market fears. The Chinese authorities have finally acted to ease the
pressure in the local money market.
"The European Central Bank and Bank of England officials have downplayed the implications of Fed tapering‚ suggesting the markets are overreacting. Emerging market authorities continue to take steps to limit the fallout in their local currency and bond markets‚” the bank said.
“Gold has taken another hit overnight. The continued fall in the price has not hit the rand yet but we are increasingly concerned that the Fed tapering is going to generate a further bear market in SA’s commodity export prices‚” RMB said.
On the JSE‚ Anglo American (AGL) was down 1.40% at R199.59 and rival BHP Billiton (BIL) gave back 1.45% to R260.40. ArcelorMittal (ACL) retreated 1.39% to R31.90.
Among gold stocks‚ AngloGold Ashanti (ANG) shed 4% to R135.07‚ Gold Fields (GFI) lost 3.16% to R48.74 and Sibanye (SGL) tumbled 4.19% to R7.09. Gold One International (GDO) bucked the trend‚ surging 9.38% to R1.40.
Platinum miners Anglo Platinum (AMS) was 1.78% softer at R276 and Impala Platinum (IMP) traded 1.72% lower at R84.52.