Johannesburg - The JSE ended relatively flat on Tuesday in cautious trade ahead of the two-day European Union summit later this week.
Shares in SA’s biggest retail banking group Absa ended more than 8% lower after the group issued a voluntary profit warning indicating that its interim headline earnings were expected to be up to 10% lower than last year.
At 17:00 local time‚ the JSE All Share [JSE:J203]
index had inched up 0.09% to 33 851.37 points‚ with resources gaining 0.47%‚ gold shares lifting 0.90% and platinum counters adding 0.49%.
Financials shed 1.26%‚ banking stocks tumbled 2.89%‚ while industrials picked up 0.44%.
The rand was trading at 8.47 to the US dollar‚ from 8.49 at the JSE’s close on Monday‚ while gold was quoted at $1 570.78 a troy ounce from $1 571.72/oz at the JSE’s previous close and platinum was at $1 429.20/oz‚ from $1 431.20/oz previously.
“I thought we could bounce back after coming off a couple of weak sessions. The US markets - trading flat to slightly negative - did not provide direction either‚” said Reuben Beelders‚ portfolio manager at Gryphon Asset Management.
Various issues are on the agenda such as a potential renegotiation of Greece's bailout terms‚ and proposals to create a fiscal and banking union. Some form of growth stimulus is also expected to be announced.
The Standard&Poor's 500-stock index edged higher on Tuesday after a measure of home prices topped forecasts‚ offsetting disappointing readings on consumer confidence and central-Atlantic region manufacturing‚ Dow Jones Newswires reported.
Home prices fell 1.9% from a year earlier in April‚ according to S&P Case-Shiller's 20-city index. Economists polled by Dow Jones Newswires had expected a 2.4% decline.
But consumers' mood on the economy soured more than expected in June‚ darkening for the fourth month in a row‚ according to the Conference Board's preliminary consumer confidence index.