JSE knocked by profit-taking

Johannesburg - The JSE opened down on Friday off the back of further profit-taking and disappointing PMI data.

A local trader said: "We've had a good run this week, and can expect some profit-taking at the moment."

"There was an increase in appetite for risk earlier this week, with gold easing down, however, we are seeing the opposite today with gold being the only stocks up this morning."

The weaker performance this morning was a combination of investors taking some of the gains of the week and manufacturing data that was slightly better than expected but still under 50 points.

Further market activity would be dependent on US non-farm payroll data coming out later this afternoon at 14:30 local time.

By 09:04 local time, the JSE All Share [JSE:J203] index was down 0.72. Resources gave up 0.88%, and platinum counters declined 0.55%. Gold however was up 0.98%. Banks were 0.97% lower and financials shed 0.59%. Industrials lost 0.67%

The rand was bid at R7.01 to the dollar, from R7.00 at the JSE's close on Thursday. Gold was trading at $1 836.34 a troy ounce from $1 823.65 at the JSE's previous close, while platinum was at $1 850.20/oz, from $1 842.50/oz previously.

Dow Jones Newswires reported Asian markets slipped in nervous trade on Friday ahead of the release of key jobs data from the US, with profit-taking adding to downward pressure after a four-day rally. Forecasts for job gains range from 25 000 to around 80 000.

"It looks like the market is set for a weaker end to the week as traders look to lock in profits ahead of tonight's much anticipated US nonfarm jobs report," Ben Potter, a market strategist at IG Markets, said.

European bourses are likely to start well lower, with core government bonds firm. Spot gold and the Swiss franc are higher as safe havens before the payrolls, while oil futures are mixed on demand worry.

Investors are adopting a very cautious stance ahead of the US labour data, bracing for a poor number and leading European stock markets lower to start.

US stock futures are lower on Friday, after markets kicked off September on a sour note, snapping a four-day winning streak as financials slumped and investors expressed trepidation ahead of the government's monthly jobs report.