JSE down ahead of busy day

Johannesburg - The JSE was slightly weaker in early trade on Thursday in what is likely to be a fairly busy day.

South African companies are in the middle of the earnings reporting season, with several major companies reporting today, while producer price inflation data is the main local economic event. Event risk later in the day on the international front is in the form of US second quarter GDP data.

At 09:14, the JSE all share index was off 0.4%, with resources easing 0.39% and platinum miners giving up 1.19%. However, gold miners were up 0.23%.

Banks were flat, financials shed 0.19% and industrials eased 0.39%.

The rand was bid at 7.82 to the dollar, from 7.77 when the JSE closed on Wednesday. Gold was quoted at $946.68 a troy ounce from $947.82/oz at the JSE's last close, and platinum was at $1 235/oz, from $1 239/oz at its previous close.

A local trader said that reports that the Chinese government may be looking to curb its expansion in a variety of industries was putting pressure on commodities prices and Asian markets were lower on the back of this news.

"Generally our resources stocks are weaker which is leading the overall market lower, with just a couple of green spots," the local trader noted.

Dow Jones Newswires reported that US stocks closed slightly higher on Wednesday as a report of rising new home sales fuelled D.R. Horton, Lowe's and a wave of other consumer companies, though Caterpillar, General Electric and some of the market's other recent leaders pulled back.

Marking its seventh straight day in the green, the Dow Jones Industrial Average closed up 4.23 points, or 0.04%, to 9 543.52. The index closed at its highest point since November 4.

Asian stock markets were lower on Thursday with weakness in China shares dampening sentiment.

Although the Dow inched higher after new home sales data and durable goods orders for July beat expectations, analysts said Wall Street's tepid reaction to the positive data indicated the markets' recent uptrend may be running out of steam.

"Signals from Wall Street are somewhat negative, because the market wasn't lifted by better-than-expected economic data," said Mizuho Securities senior technical analyst Yutaka Miura. "The US market may be facing stronger resistance now," he added.

Japan's Nikkei was down 1.56%, while Hong Kong's Hang Seng Index shed 1.2%.

European bourses are tipped to start slightly lower as sentiment yet again turns a bit sceptical toward valuations.

- I-Net Bridge