JSE flat after good run

Johannesburg - The JSE was flat on Friday morning as the market took a breather after a good trading week.

“The market has rallied a lot the last couple of days with every second day a new high being reached‚” said Michael du Plooy‚ stockbroker at PSG Konsult in Pretoria.

“The euro has been rallying the past two days‚ but the rand has weakened again. It is very much a risk-on‚ risk-off market. As soon as the US releases 'alrightish' economic figures‚ it becomes a risk-on market‚ and foreign buying of our local shares follows. The bull market is very much a hot and cold risk-on and risk-off market‚” he added.

At 9:42 the JSE All Share [JSE:J203] index was trading 0.08% softer at 35‚715.33 points‚ with only gold miners showing some gains - up 0.75%.

World markets were trading in positive territory with the UK FTSE 100 index up 0.28%‚ the Nikkei closing 0.77% higher and the Hang Seng index last 0.86% higher.

Rand Merchant Bank said in a morning note that both Mario Draghi and Angela Merkel have argued aggressively in support of the euro.

“This has helped global markets but we have reached a stage where we need action rather than words. Equity markets continue to hit records but the disconnect with high risk currencies remains‚” the bank said.

“The only thing on today’s data calendar is the US University of Michigan Consumer Confidence Index. Yesterday’s third tier US data continued to show a divergence between decent real sector numbers and declining confidence. US Federal Reserve hawks have argued that this does not justify quantitative easing (QE3) but the market remains hopeful‚” it added.

Among local movers were Lonmin [JSE:LON]‚ which shed R5.40‚ or 6.45%‚ to R78.30. More than 30 miners were shot dead by the police at the Lonmin mine in Marikana in Rustenburg‚ Police Minister Nathi Mthethwa said on Friday.

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