JSE flat, awaits US data

Johannesburg - The JSE was flat by noon on Friday while attempting to consolidate its recent big moves and waiting to get direction from the US later in the day.

By 12:04, the JSE all share index had weakened 0.29%; resources were flat, up 0.05% and platinum miners added 2.71%. However, gold counters gave up 6.61%. Banks were flat, down 0.05%, financials edged up 0.18% and industrials weakened 0.91%.

The rand was last bid at R9.16 to the dollar, from R9.19 when the JSE closed on Thursday. Gold was quoted at $902.90/oz a troy ounce from $899.35/oz at the JSE's last close, and platinum was at $1 157/oz from its previous close of $1 153.50/oz.

"We are flat at the moment, but we are not doing too badly considering the big moves we have seen recently," a trader said.

"It's a wait-and-see at the moment. Everyone is eyeing the jobs data due out in the US later today. But it's looking good."

He said that the gold price had moved back and gold stocks had come under pressure, but this was not surprising as these stocks had seen some big moves recently.

"We are eyeing overseas markets, they will remain the key indicator. We will wait and see what happens there as we see some consolidation in the market.

'Mining houses doing well'

"The mining houses are doing well. Anglo American shares have been depressed and now they are flying. Bullion is up, the platinum stocks are looking good. Old Mutual is doing well, they are following the world market trend," he said.

Dow Jones Newswires reports that the FTSE 100 came off lows with more positive news flow for the UK economy. UK services PMI rose relatively strongly and was at its highest level since September 2008. James Knightley, economist at ING Bank said, "while still below the 50 break-even level, it does perhaps signal that the biggest falls in output are now behind us." However, Knightley warned there were still ongoing downside risks to activity and he continues to look for negative GDP growth throughout '09.

The FTSE 100 had last edged down 0.43%.

US stocks are expected to open nearly unchanged, with the opening call coming in ahead of non-farm payroll data due at 12:30 GMT, ahead of Wall Street's open. David Morrison, strategist called the DJIA to open down 8 points and the S&P 500 up 1 point. "Non-farm payrolls should be the main focus of attention, and the forecast is for a poor reading," he said.

"However, traders have chosen to ignore poor jobs news recently, seeing it as a lagging indicator," he added, noting recent leading economic indicators have suggested the recession has hit a bottom.

- I-Net Bridge