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Johannesburg - The JSE ended little changed in quiet trade on Tuesday, with the strong rand putting downward pressure on export-oriented stocks especially mining counters.
Kevin Algeo, portfolio manager at Imara SP Reid, said trade volumes were light, noting that there was a little bit of profit taking. Around R2.5bn in total value traded today. On average, between R12bn and R14bn is traded.
At 17:00, the JSE all share index was virtually flat (-0.08%), with platinum miners slipping 1.21%, resources shedding 0.30% and gold miners falling 0.16%. But banks rose 0.31%, and financials were up 0.16%, while industrials were unchanged (0.04%).
The rand was bid at 6.65 to the dollar from 6.74 at the JSE's close on Friday. Gold was quoted at US$1 400.83 a troy ounce from US$1 383.50/oz at the JSE's previous close, while platinum was at $1 750.00/oz from $1 728.00/oz before.
Higher commodity prices offset the strong rand, limiting losses in mining counters, Algeo said. Earlier today the rand traded at 6.6470 against the dollar - a 37-month best level.
David Shapiro, market watcher with Sasfin, said earlier trade was generally exceptionally light between Christmas and New Year. Few market participants are at work. "There is no real momentum behind the market,"
David Shapiro, market watcher with Sasfin, said.
Dow Jones Newswires reported that US stocks wavered between small gains and losses on Tuesday as metals and mining stocks bounced back and Cisco extended its strong climb this week, but mixed housing data kept the gains in check.
The Dow Jones Industrial Average fell 9 points to 11 546 in recent trading.
Monday's trading saw the year's lightest volume of any full session and trading is expected to remain thin for the rest of the year's final week. In a week traditionally light due to holiday vacations, the Northeast continued to dig out of a snowstorm that dumped more than 20 inches of snow on New York City.
Snowstorms could put a dent in late December shopping, though early data showed encouraging holiday spending figures. US consumers spent 5.5% more in the 2010 holiday season than they did a year earlier, buying lots of clothes to counter cold December weather and even big-ticket items like jewelry and luxury goods, according to the SpendingPulse division of MasterCard Advisors. The report measures sales excluding cars for the 50 days from November
5 through December 24.
Metals and mining stocks rebounded after dipping on Monday in the wake of China's interest rate hikes.
