JSE in red on global markets

Johannesburg - Moving in tandem with weaker global markets, the JSE opened in the red on Monday weighed by resource and platinum counters.

At 09:12 the JSE all share index had lost 1.03%, with resources giving up 1.43% and platinum producers down 2.26%, however, gold edged up 0.30%.

Banks declined 1.55%, financials were 1.09% lower and industrials weakened 0.55%.

The rand was bid at 7.89 to the dollar from 7.78 when the JSE closed on Friday. Gold was quoted at $1 045.40 a troy ounce from $1 039.55 at the JSE's last close, and platinum was at $1 323.50/oz, from $1 320/oz at its previous close.

"Following the consumer data out of the US last week, the Dow ended down and that followed through into the east this morning and we are following those markets," a local trader said.

"For the rest of the day, I see the market coming back a bit. The rand weakness could give the mining shares some support. I don't see us closing down as much," he said.

Dow Jones Newswire reported that US stocks tumbled on Friday, with Bank of America, JPMorgan Chase and Alcoa leading the Dow Jones Industrial Average's components lower as investors again grew concerned about the economy after the short-lived excitement over Thursday's good report on gross domestic product.

The Dow Friday posted its biggest one-day point drop since April 20, and ended October just 0.45 point above where it began. Other major measures, including the Standard & Poor's 500 and the Nasdaq Composite, ended the month in the red, marking their first monthly declines since February.

The Dow closed down 249.85 points, or 2.51%, at 9712.73, marking its 10th triple-digit movement this month. Five of them were down and five up, reflecting how volatile the market has gotten as investors try to get a handle on whether the 48% surge in the Dow since March can be justified by economic fundamentals. For the week, the Dow fell 259.45 points, or 2.6%, marking its second consecutive week in the red.

Asian share markets traded mostly lower on Monday, tracking declines on Wall Street Friday. Exporters' stocks weighed on the Tokyo market, though shares of Japanese consumer lenders surged.

In Japan, the Nikkei ended down 2.3% and Hong Kong's Hang Seng was last 1.7%.

European stock markets may start a bit lower but selling pressure may give way to bargain-hunting should Wall Street futures hold their gains going into the opening there.

- I-Net Bridge