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Johannesburg - The JSE was a tad higher on Thursday morning‚
with banks leading the upside‚ supported by the stabilisation of the rand‚
while resources weighed the most on the bourse due to a Goldman Sachs report
calling the Chinese economy to slow down‚ which put pressure on local resource
counters.
At 9:33am the JSE All Share [JSE:J203] index was 0.08%
firmer at 36‚120.12 points‚ with banks up 0.51% and resources dipping 0.58%.
European markets were mostly trading flat‚ with the London
FTSE 100 0.13% higher while the Japanese Nikkei closed 0.58% softer at 8‚546‚78
points.
“Locally traders are waiting for a resolution to the strikes
in the gold mining and transport sectors. There are talks under way and if a
constructive resolution is achieved‚ it would be positive for the rand‚ but if
the situation worsens we will see the market come off again‚” said Francois
Venter‚ equity dealer at Investec Asset Management in Cape Town.
Rand Merchant Bank said in a morning note that news reports
suggested that workers in the gold sector would indicate on Thursday whether
they had accepted the pay structure proposals of the Chamber of Mines.
“You can argue that the tide is turning and that potential for positive news flow has increased. It seems as if trade unions in the freight sector are also moving towards an agreement that may end the strike that has weighed on this industry over the last few weeks. We are cautiously optimistic that these developments will ease foreign investor concern about investing in SA and set the scene for a resumption of the trend for foreign flows into the domestic bond market‚” the bank said.
