JSE stays weaker, awaits fresh data

2011-06-23 13:36

Johannesburg - The JSE remained in the red at noon on Thursday, tracking the weaker tone on global markets as investors awaited positive market-moving data.

In the meantime, the US Federal Reserve's bearish outlook on the US economy on Wednesday kept investors worried, as did the Greek debt crisis.

By 12:00 local time, the JSE All Share [JSE:J203] index was down 0.75%, with resources losing 1.27%, platinum miners falling 0.41% and gold miners dropping 1.36%. Banks also dipped 0.42%, financials were 0.44% lower and industrials shed 0.39%.

The rand weakened to 6.83 to the dollar from 6.72 at the JSE's close on Wednesday. Gold was quoted at US$1 540.22 a troy ounce from US$1 556.76/oz at the JSE's previous close, while platinum was at $1 713.50/oz, from $1 752.50/oz previously.

Patrick Mathidi, a market commentator at RMB Asset Management, said: "The market lacks fresh data, both locally and internationally. The US Fed's statement simply confirmed investor fears about the US economic recovering faltering. The Greek debt question, until it's resolved, is still a worry."

Dow Jones Newswires reported that European stocks pushed lower on Thursday, with investors concerned about faltering global growth after weak euro-zone private sector data and following downbeat comments about the US economy by Federal Reserve chairman Ben Bernanke.

London's FTSE 100 index had lost 0.87% by midday trading, while the downbeat assessment of the US economy affected Asian stock markets, as did a further slowing in China's manufacturing activity in June. Japan's Nikkei Stock Average closed 0.3% lower, while Hong Kong's Hang Seng index lost 0.5%.