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JSE falls at open in tentative trade

Feb 09 2012 10:25 I-Net Bridge

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Johannesburg - The JSE slipped during its opening session on Thursday, with the general mining plays leading the downside amid the ongoing Greek debt concerns.

At 09:23 local time, the JSE All Share [JSE:J203] index was 0.26% in the red to 34,139.27 points, with the resource sector down 0.85%, while platinum shares shed 0.83% and the gold index was flat (0.02%).

Industrials edged up 0.08%, financials inched up 0.05%, and banks were down marginally at 0.15%

The rand was trading at R7.53 to the US dollar, from R7.55 at the JSE's close on Wednesday. Gold was quoted at $1 739.01 a troy ounce from $1 745.89/oz at the JSE's previous close, while platinum was at $1 666/oz, from $1 659.51/oz before.

"We are taking our cue from the Asian markets, which fell on Greek debt concerns," Sasha Naryshkine, portfolio manager at Vestact Asset Management. "I'm not particularly concerned about China's latest inflation reading, which topped analysts' estimates because it could be seasonal."

Most Asian stock markets dropped on Thursday as accelerating inflation in China eroded expectations of further near-term stimulus measures from Beijing, and added to the disappointment over Greece's failure to reach a deal on debt restructuring talks.

China reported its consumer price index rose 4.5% in January, up from 4.1% in December and topping expectations of a 4.1% rise.

The higher inflation number diminished expectations of more near-term monetary easing measures from Beijing, with many market observers now expecting a delay to a much anticipated reserve requirement ratio cut.

Greek government coalition talks on austerity measures ended on Wednesday with one remaining point of disagreement, the prime minister's office said. It added that it hoped for a complete deal to be reached by Thursday evening.

Representatives of the European Union, the International Monetary Fund and the European Central Bank, have been organising massive bailout loans for the debt-ridden country.

Greece desperately requires emergency funds from its eurozone partners to avoid defaulting on €14.5bn worth of payments to bond holders due on March 20.

European stock markets are likely to start higher amid a wave of earnings reports and an anxious wait for Greece to iron out its domestic austerity squabble and to wind up a bailout deal at the euro group meeting later. 

greece  |  jse  |  markets
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