Johannesburg - The JSE ended in the red on Friday
with resource and platinum counters leading the falls in a session that saw
commodity prices lose momentum and market players take profits after a good
week.
At 17:00 the JSE all share index had given up 0.58%, with resources
losing 1.01%. Gold miners weakened 0.97% and platinums shed 1.88%.
Banks edged up 0.56% and financials were flat, up 0.01%, but industrials
were down 0.42%.
The rand was bid at 7.36 to the dollar from 7.34 just before the JSE
closed on Thursday. Gold was quoted at $1 050.30 a troy ounce from
$1 049.10/oz just before the JSE's last close, and platinum was at
$1 340/oz, from $1 342/oz at its previous close.
"We ended down today, nothing really happened during the afternoon, just
continued profit taking. Volumes are also very low," a trader said.
"US markets are closed on Monday and perhaps we are seeing a bit of
uncertainty creep in because of that. Alcoa came out this week with better-
than-expected results. That puts a benchmark for the other companies. They
are now also expected to bring out better earnings, if they don't then we
will see further profit taking.
"The rand is keeping on to its gains and that is putting the resources
under pressure after having had a good run. Rand hedge companies are also
under pressure," he said.
Earlier in the day, the trader said: "We had a good week and today is
the last day and people are now taking money off the table. There are more
earnings due out next week. It's probably just the market getting jittery
ahead of those and people choosing to sit on the sideline."
Dow Jones Newswires reports that US stocks edged higher, the dollar was
stronger and commodities weakened on Friday following an unexpected
narrowing in the US trade deficit.
The Djia, which has risen in three of this week's four full trading
sessions, was recently up 26 points, or 0.3%, at 9 812.72. Two years ago
Friday the Dow hit an all-time record close of 14164.53. It ended trading
Thursday 31% below that mark.
The Nasdaq Composite Index rose 0.4%. The S&P 500 was up 0.3%. The
Russell 2000 was up 0.5%.
Friday's earnings calendar was light, but investors did get a surprise
on the economic front. The Commerce Department US deficit in international
trade of goods and services decreased 3.6% to $30.71bn from a
downwardly revised $31.85bn the month before. The July trade gap was
originally reported as $31.96bn.
The decline, the first since May, marked the first time the deficit
dropped in four months, as exports rose to their highest level of the year
and imports eased despite higher oil prices. Economists surveyed by Dow
Jones Newswires had expected a further widening in the deficit to $33.6bn.
Federal Reserve chair Ben Bernanke said late on Thursday that the US
central bank would reverse course and tighten policy when the economic
outlook improves sufficiently, though he said accommodative policy would
still be needed for an extended period.
Low rates from the Fed have also helped to fuel a pullback in the dollar
this year, but that trend eased on Friday. The dollar recently posted gains
against all six foreign denominations in the US Dollar Index, pushing the
measure up 0.4%.
The Djia was last flat, up 0.29%.
- I-Net Bridge