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Johannesburg - The JSE moved sideways in midday trade on Tuesday in line with global markets, amid thinned out volumes.
By 12:00 local time the JSE all share index rose 0.27%, with platinum miners gaining 0.17%, resources firmed 0.28% and gold miners collected 1.19%. Financials were up 0.29%, banks gathered 0.25%, and industrials were 0.25% firmer.
The rand was bid at 6.84 to the dollar from 6.82 at the JSE's close on Monday. Gold was quoted at US$1 403.18 a troy ounce from US$1 376.55/oz at the JSE's previous close, while platinum was at $1 710.50/oz from $1 701.50/oz before.
A local dealer said: "There is not very much happening at the moment.
Volume started to thin out two weeks ago already.
"The big news on the local bourse is the drop in Adcock Ingram's shares, following government's ARV tender awards."
"The futures close-out tomorrow may provide more action, but for now we are very much in line with global stocks in that very little is happening."
The trader noted that stocks did not react to the increase in South Africa's consumer price index (CPI), which is used by the South African Reserve Bank (SARB) for its inflation target, was 3.6% year-on-year (y/y) in November from 3.4% y/y in October, Statistics South Africa (Stats SA) said on Tuesday.
CPI was at 0.2% month-on-month (m/m) from 0.2% m/m in October.
It was expected at 3.5% y/y, according to a survey of leading economists by I-Net Bridge, with forecasts among the 10 economists ranging from 3.4% to 3.6%.
Dow Jones Newswires reported that equities edged lower during European trading Tuesday, following on from the lacklustre sessions in the US and Asia, and may be being impacted by the derivatives expiry on Friday.
According to a London-based derivatives broker, the actions of delta-hedgers trying to mitigate risk in their open outstanding option positions, or open interest, could limit the potential upside in the very short-term.
"I'm thinking that the long open interest positions in the 5 900 strike in the FTSE and the 1250 strike in the S&P are in option dealers hands i.e. delta-hedgers who have to sell futures as they effectively get longer as we go through the strike. It's known as pinning," he said.
He added, "after expiry perhaps the equity market can confirm what the bond market is already signaling ... i.e that the US will grow more rapidly in the next couple of quarters."
