JSE extends losses

Johannesburg - Resources led the downside as South African stocks extended losses by noon on Monday amid profit taking in a session that lacked direction with UK markets closed for a public holiday.

At 12:01, the JSE all share index had fallen 1.55%, with resources shedding 2.56%, platinum miners losing 1.72% and gold miners declining 1.39%.

Banks weakened 0.31%, financials eased 0.29% and industrials were off 1.09%.

The rand was bid at 7.77 to the dollar, from 7.73 when the JSE closed on Friday. Gold was quoted at $954.50 a troy ounce from $957.85/oz at the JSE's last close, and platinum was at $1nbsp;239/oz, from $1 244/oz at its previous close.

"We have extended losses. There is no direction in the market with London closed. Eastern markets were down this morning too and we have just followed them," a Johannesburg-based trader said.

"The dollar has also recovered since Friday and metal prices have come back. There is mostly profit taking, markets have run hard. We are seeing no direction. And we have seen that if we have no direction from London we tend to just drift.

"I think we have reached a level where there will be some consolidation at the 25 000 mark. It's just profit taking, nothing much from the fundamental point of view. Markets have had big moves and at the moment we are seeing profit taking."

Dow Jones Newswires reported that US stocks are expected to open lower on Monday, with the futures market showing the front month Djia contract down 56 points at 9 480 and the S&P 500 front month contract down 6 points at 1 021.40. US markets are likely to follow the lead from Asia, as Chinese shares slumped to a three-month low, while Europe also weakened, but in quiet trading with the UK on holiday. Key economic data later this week are expected to keep a lid on trading on Monday, with US ISM data on Tuesday and the key non-farm payrolls for August on Friday.

- I-Net Bridge