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JSE declines on global sentiment

Johannesburg - The JSE added to its morning losses by midday on Tuesday, tracking negative global sentiment amid concerns that
China's economic expansion may be slowing.

A local trader however, pointed to very thin volumes.

At noon the JSE all share index had shed 1.44% with resources 2.21% down. Platinum miners shipped 2.43%, while gold miners declined 1.52%. Banks fell 0.61%, financials wavered 0.72% and industrials were 1.01% in negative territory.

The rand was bid at R7.62 to the dollar, from R7.54 at the JSE's last close. Gold was quoted at $1 235.72 a troy ounce from at $1 247.59/oz at the JSE's previous close, while platinum was at $1 549.50/oz from $1 571.00/oz at the JSE's last close.

A local trader said: "There are no specific factors driving the market today.

"There is concern that China's economic expansion might be slowing, which has impacted global sentiment.

"We seem to be tracking negative sentiment, but Volumes are very lousy," he said.

Dow Jones Newswires reported that US stocks are called to open lower, in line with US futures, said David Morrison. He noted a big drop in the Chinese market following the slightly lower-than-expected pricing range for the domestic part of Agricultural Bank of China's initial public offering. 

"There is a building sense of panic as the month-end approaches and the ECB's €442bn special liquidity facility runs out," he added.

European stocks fell sharply lower on Tuesday, amid worries Chinese economic expansion is slowing and concerns about the potential impact on global growth of the Group of 20's pledge to cut deficits.

On Tuesday, the Chinese market dropped on concerns over the slightly lower-than-expected pricing range for the domestic part of Agricultural Bank of China's initial public offering, suggesting that investment activity may be slowing down.

At the same time, a surprise revision to a leading indicator has contributed to the sharp fall in Chinese equities. The Conference Board leading economic index for China was revised down to 0.3% in April from a first estimate of 1.7% after what the Conference Board described as a calculation error.

"This adds further evidence of a moderating Chinese economic growth outlook. This puts further pressure on the PMI survey data released on July 1," said Shore Capital.

Adding further pressure, concerns mounted that the G20 plans to reduce deficits-and government stimulus packages-could end up damaging global growth.

In Asia, stocks were mostly lower on Tuesday, with many markets weighed down by a sharp fall in shares in China on concerns over a possible slowing in fresh investment into equities there.

  - I-Net Bridge

 
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Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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