Share

JSE extends losses on risk aversion

Johannesburg - The JSE extended losses at noon on Tuesday, tracking the weaker trend on world stock markets, with political uncertainty in Greece still the main catalyst for market selloffs, in the absence of fresh market moving data.

At 12:03 local time, the JSE All Share [JSE:J203] index was down 0.59% to 33 756.54 points, with platinum shares falling 1.41%, gold miners shedding 0.90% and resource counters losing 0.44%.

Financials lost 0.67%, banking stocks were down 0.97% and industrials dropped 0.65%.

The rand weakened to 7.86 to the US dollar, from 7.82 at the JSE's close on Monday, while Gold was quoted at $1 625.96 a troy ounce from $1 633.76/oz at the JSE's previous close, while platinum was at $1 522/oz, from $1 523.50/oz at the previous session.

"Given the risk-off environment scenario, fuelled by eurozone debt concerns and negative US jobs data last week, I can't think of anything else that will convincingly lift asset prices in the short to medium term other than additional stimulus measures," said Rudi van der Merwe, market analyst at Standard Bank Stockbroking.

European stocks fell on Tuesday on renewed concerns over a potential escalation of the eurozone sovereign debt crisis in coming weeks, as the political gridlock in Greece after the election places pressure on market confidence, Dow Jones Newswires reported.

Traders said the outcome of the French election was largely priced-in by markets, but pointed to renewed uncertainty following inconclusive weekend elections in Greece.

Greece's first efforts to negotiate a cross-party coalition government stumbled on Monday, after conservative leader Antonis Samaras failed to reach a deal with rival lawmakers. With chances for a coalition slim, the country may have to hold new elections soon.

UK's FTSE 100 edged down 0.31% to 5 637.28 points just before noon local time.

Japan led most Asian markets higher, rebounding after heavy losses on Monday, while Hong Kong and China were nudged lower by falling property and bank stocks.

Japan's Nikkei climbed 0.69% while Hong Kong's Hang Seng Index dropped by 0.25%.

US stock-index futures were also lower, taking a cue from Europe, as worries mounted over the inability of Greek party leaders to form a government after inconclusive parliamentary elections over the weekend.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders