JSE bleeds on profit-taking

Johannesburg - The JSE was down by over 400 points by noon trade on Monday due to profit-taking and a stronger dollar hurting resources according to a local trader.

By 12:00, the JSE all share index had given up 1.77%, with resources down 3.09%, having added more than 4% on Friday. Platinum receded 2.11% and gold miners shed 1.79%. Banks were down 1.22%, financials lost 0.79% and industrials declined 0.64%.

The rand was last bid at R8.17 to the dollar from R8.05 when the JSE closed on Friday. Gold was quoted at $946.65/oz a troy ounce from $960.17/oz at the JSE's last close, and platinum was at $1 225/oz, from $1 259/oz at its previous close.

A local trader said: "Australia is closed today because of a holiday there, so we didn't get an indication from them as to what resources should have done. They (resources) are bleeding a little today after a rally on Friday.

"A stronger dollar is also hurting resources. Otherwise we are seeing profit-taking, which should be the trend for the first part of the week," he said.

Dow Jones Newswires reports that US stocks are called to open down on Monday, says David Morrison at GFT. Calls the DJIA down 100 points at 8663.1 and the S&P 500 8.6 points lower at 931.5. Says US economic news gives investors a lot to think about, with the unemployment rate hitting levels not seen for 20 years, the announcement of another bank failure - Bank of Lincolnwood - and news credit card delinquencies are up 11% in 1Q. Eyes the ten-year US note yield. Says falling bonds along with equities will add to nervousness about the strength of any future equity rallies. The Dow front month futures contract trades -0.9% at 8681.0 and the S&P 500 trades -1.0% at 931.5.

- I-Net Bridge