Johannesburg - The JSE opened flat on Tuesday amid cautious
trade, with Greek debt woes remaining the key focus of investor attention.
Nick Kunze, head of dealing, BJM Private Client Services,
said the confirmation of the Glencore/Xstrata deal would likely boost the local
mining sector.
Glencore directors and independent Xstrata directors have
reached agreement on the terms of a recommended all-share merger of equals, it
was announced on Tuesday.
This would lead to the creation of a major natural resources
group with a combined equity market value of US$90 billion and a unique
business model, fully integrated along the commodities value chain, from mining
and processing, storage, freight and logistics, to marketing and sales, the
parties said.
At 09:26 local time, the JSE All Share [JSE:J203] index was
flat at 34 171.32 points, with gold index losing 0.36%, while platinums gained
0.49% and resources were down 0.08%.
Industrials slipped 0.04%, financials edged up 0.15%, and
banks were up 0.20%
The rand was trading at R7.55 to the US dollar, from R7.58
at the JSE's close on Monday. Gold was quoted at $1 727.34 a troy ounce from $1
720.61/oz at the JSE's previous close, while platinum was at $1 626/oz, from $1
615.58/oz before.
Asian stock markets were mostly lower on Tuesday amid weak
market sentiment after losses overnight on Wall Street and prolonged disquiet
over Greece's ability to tackle its debt mountain, Dow Jones Newswires reports.
Officials in Greece struggled to make headway on austerity
measures which are crucial for obtaining the next instalment of the bailout
package for the debt-strapped country, with Prime Minister Lucas Papademos and
other political leaders delaying a key meeting on reforms demanded by the
country's creditors.
Fitch Ratings said on Tuesday that the eurozone sovereign
debt crisis was likely to be prolonged, and that severe contagion was likely
across Europe if bailout negotiations in Greece failed.
Greece has agreed to lay off 15 000 public-sector workers by
the end of 2012, as international pressure mounts on the government to agree on
austerity measures needed to secure major new debt agreements.
Greece's Minister of Finance Evangelos Venizelos said
negotiations with the country's international creditors on a new loan programme
remained "difficult" as new issues continuously arose despite
progress made on some fronts.
European stock markets are likely to start a little lower as
the unease over Greece continues to flummox sentiment.
"With some key stumbling blocks still unresolved, there
is a real risk that Greece will not get another bailout from the EU," said
Danske Bank in a research note.