Johannesburg - The JSE ended an erratic session slightly higher on
Tuesday, recovering from worse levels as investors took disappointing
earnings from Goldman Sachs and IBM, and weak US housing starts data in their
stride.
The JSE all share index ended flat (+0.07%). Key indices were mixed, with resources
gaining 0.41%, and platinum miners adding 0.52%. But gold miners slumped 0.67%,
and banks lost 0.48%. Financials weakened 0.34%, and industrials were flat
(-0.04%).
The rand was bid at R7.59 to the dollar, from R7.64 at the JSE's last close. Gold was
quoted at $1 192.45 a troy ounce from $1 179.78/oz at the JSE's previous
close, while platinum was at $1 504.50/oz from $1 503.50/oz/oz
before.
A
trader said the domestic market reversed earlier losses and closed in positive territory
despite dismal earnings reports from the likes of Goldman Sachs Group, IBM and
Texas Instruments.
Describing trade as erratic, the trader said the market also ignored a 5% drop in US housing
starts to a seasonally adjusted annual rate of 549 000 in June. Economists
had been expecting a 3.2% decline.
Dow Jones newswires reports that US stocks tumbled on Tuesday as technology stocks led
a broad decline, following a round of disappointing quarterly reports.
Weaker-than-expected revenue and sales from companies including Goldman Sachs Group,
International Business Machines (IBM) and Texas Instruments sent the market
falling early on Tuesday.
The Dow Jones Industrial Average recently shed 120 points, or 1.2%, to 10 035, putting the
market within striking distance of sliding below the 10 000 level.
Investors zeroed in on signs of lagging top-line growth at companies that had managed to
boost earnings in earlier quarters by cutting costs.
Investors shrugged off yet another sign of housing market weakness, which actually served
to encourage some.
The Commerce Department reported that housing starts dropped a more-than-expected 5% to a
seasonally adjusted annual rate of 549 000 in June, when economists had
been expecting a 3.2% drop.
But market watchers said the decline in new home building may help the industry work through
its surplus of homes accumulated during more frenzied times, though a
stagnant industry provides fewer jobs in the short term.
- I-Net Bridge