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Johannesburg - The JSE was flat in midday trade
on Wednesday which traders attributed to a consolidation of global
markets after Tuesday's rally as well as caution among investors amid
signs of division within the euro zone over the methods needed to help
Greece through its funding crisis.
By 12:00 local time, the JSE All Share [JSE:J203] index was up 0.27%, led by platinum miners which were 0.84% firmer, industrials which were up 0.59%, financials which were 0.55% stronger and banks which were 0.54% firmer.
Gold stocks however were off 0.76%, and resources 0.12% lower.
The rand was weaker at 7.82 to the dollar, from 7.79 the JSE's close on Tuesday. Gold traded at $1 657 a troy ounce from $1 661.56 at the JSE's previous close, while platinum was at $1 561/oz, from $1 574/oz previously.
"The market is consolidating after the strong flows yesterday. There is also some caution among investors as they await more clarification over the Greek bailout package. We are awaiting further news from the EU which will provide more direction for the local market.
"But, unless there is some news that really moves the market, we're likely to continue at these levels for a while, "a local trader said.
Dow Jones Newswires reported that European stocks traded lower Wednesday, as investors reacted to the large gains of the last couple of days with caution amid signs of division within the euro zone over the methods needed to help Greece through its funding crisis.
This follows a report in the Financial Times that seven of the euro zone's 17 countries want the private sector to incur more of the cost of bailing out Greece out than was previously agreed.
"If the last 18 months is anything to go by then the significant rally of the last two days could be enough to persuade some of the important European power brokers that there is less urgency to come up with a dramatically expanded European rescue package," noted Deutsche Bank.
And this comes as Finland gets ready to vote on proposed changes to the EFSF, at 1100 GMT, while still demanding collateral for its contribution to the Greek bailout.
Meanwhile, Asian stock markets ended mixed Wednesday as concerns about Europe's ability to tackle its debt problems kept buying sentiment in check.
Japan's Nikkei Stock Average ended with a 0.1% gain and Australia's S&P/ASX 200 index gained 0.9%. However, South Korea's Kospi traded down 0.7%, while the Shanghai Composite Index fell 1.0%, and the Hang Seng Index lost 0.7%.
Describing Asian stock markets on Wednesday as "listless," DBS Vickers director Peter Lai said investors want to see more developments on Europe's debt situation before they are willing to take a more positive stance on the region's equities.
"The market is very bearish. They don't agree with [U.S. Federal Reserve Chairman Ben] Bernanke's Operation Twist, and the euro-zone debt situation doesn't create any positive hope. After all, there are demonstrations in Greece and Italy, and political tension in Greece is very tight. This is why people doubt that there will be some kind of rescue with the European debt," he said.
By 12:00 local time, the JSE All Share [JSE:J203] index was up 0.27%, led by platinum miners which were 0.84% firmer, industrials which were up 0.59%, financials which were 0.55% stronger and banks which were 0.54% firmer.
Gold stocks however were off 0.76%, and resources 0.12% lower.
The rand was weaker at 7.82 to the dollar, from 7.79 the JSE's close on Tuesday. Gold traded at $1 657 a troy ounce from $1 661.56 at the JSE's previous close, while platinum was at $1 561/oz, from $1 574/oz previously.
"The market is consolidating after the strong flows yesterday. There is also some caution among investors as they await more clarification over the Greek bailout package. We are awaiting further news from the EU which will provide more direction for the local market.
"But, unless there is some news that really moves the market, we're likely to continue at these levels for a while, "a local trader said.
Dow Jones Newswires reported that European stocks traded lower Wednesday, as investors reacted to the large gains of the last couple of days with caution amid signs of division within the euro zone over the methods needed to help Greece through its funding crisis.
This follows a report in the Financial Times that seven of the euro zone's 17 countries want the private sector to incur more of the cost of bailing out Greece out than was previously agreed.
"If the last 18 months is anything to go by then the significant rally of the last two days could be enough to persuade some of the important European power brokers that there is less urgency to come up with a dramatically expanded European rescue package," noted Deutsche Bank.
And this comes as Finland gets ready to vote on proposed changes to the EFSF, at 1100 GMT, while still demanding collateral for its contribution to the Greek bailout.
Meanwhile, Asian stock markets ended mixed Wednesday as concerns about Europe's ability to tackle its debt problems kept buying sentiment in check.
Japan's Nikkei Stock Average ended with a 0.1% gain and Australia's S&P/ASX 200 index gained 0.9%. However, South Korea's Kospi traded down 0.7%, while the Shanghai Composite Index fell 1.0%, and the Hang Seng Index lost 0.7%.
Describing Asian stock markets on Wednesday as "listless," DBS Vickers director Peter Lai said investors want to see more developments on Europe's debt situation before they are willing to take a more positive stance on the region's equities.
"The market is very bearish. They don't agree with [U.S. Federal Reserve Chairman Ben] Bernanke's Operation Twist, and the euro-zone debt situation doesn't create any positive hope. After all, there are demonstrations in Greece and Italy, and political tension in Greece is very tight. This is why people doubt that there will be some kind of rescue with the European debt," he said.
