JSE stays weaker as miners weigh
Johannesburg - The JSE remained lower at noon on
Monday, bucking the international trend, with leading European stock
markets turning positive and Dow futures signalling a firmer start for
PSG Konsult stockbroker Hennie Fourie said the rand recovery
from the session's worst level weighed on the mining shares, which in
turn, affected the local bourse.
At 12:01 local time, the JSE All Share [JSE:J203] index was down 0.24% to
33 068.40 points, with the platinum sector losing 1.20%, resources
easing off 0.34% and gold counters shedding 0.86%.
Financials were down 0.50%, banking stocks were off 0.72%, while industrials were relatively static (-0.04%).
The rand was trading at 8.29 to the US dollar, from 8.30 at
the JSE's close on Friday, while gold was quoted at $1 592 a troy
ounce from $1 595.39/oz at the JSE's previous close and platinum was at
$1 466.50/oz, from $1 463.20/oz at the previous session.
"The rand has strengthened a bit this morning, recovering to
around the 8.26 level to the US dollar from 8.35. That is impacting on
the mining shares and therefore the all-share index, while the European
stock markets rebounded and Dow futures point to a firmer open. BHP
Billiton in Australia ended 2% firmer whereas it is only marginally up
at this stage locally," said Fourie.
European stock markets moved higher on improved sentiment,
helped by the Group of Eight (G8) leaders affirming they wanted Greece
to remain in the eurozone, calming some of the recent worries about the
country's membership of the 17-nation union, Dow Jones Newswires
At the weekend's summit of G8 nations, leaders failed to reach
an agreement on how to calm the escalating economic crisis in Europe,
but the meeting's final statement did affirm that they wanted Greece to
remain in the eurozone. Also in the joint statement, leaders said that
they would take steps to boost their economies.
The UK's FTSE 100 index was up 0.35% to 5 285.09 points at about noon local time.
Asian markets ended mostly higher after G8 leaders affirmed
they wanted Greece to remain in the eurozone and Chinese Premier Wen
Jiabao raised hopes of further policy easing.
Japan's Nikkei finished 0.30% higher at 8 633.89, China
Shanghai SE Composite was up 0.2% while Hong Kong's Hang Seng Index
finished the day down 0.2%.