Johannesburg - South African stocks were flat in early trade on Monday with the strong local currency hampering gains in the
resource sector, a Johannesburg-based equities trader said.
By 09:21, the JSE all share index had edged up 0.16% with resources collecting 0.13%. Gold counters were 0.79% stronger and platinum miners were up 0.35%. Banks added 0.51%, financials inched up 0.45% and industrials were flat, down 0.01%.
The rand was last bid at R7.88 to the dollar from R7.90 when the JSE closed on Friday. Gold was quoted at $940.62/oz a troy ounce from $940.35/oz at the JSE's last close, and platinum was at $1 193/oz, from $1 196.50/oz at its previous close.
"We are flat this morning. We are in for a quiet trading week with Friday being a holiday in the US," the trader said.
"The rand is strong and that is hampering significant gains in the resources.
"We are likely to stay flat for the rest of the day," he said.
Dow Jones Newswires reports that as stocks closed a choppy week on another mixed note on Friday, Palm and Accenture rose after their earnings exceeded expectations and Micron Technology dropped on a wider loss.
Europe seen opening mixed
The DJIA fell 34.01 points, to 8438.39. For the week, the Dow
industrial average lost 101.34. With two sessions left in the
second quarter, the Dow is up 829.47 points, which would be its
first up quarter in over a year and a half.
The S&P 500-stock index shed 1.36 points, to 918.90. The S&P
500 for the week lost 2.33 points. So far for the second quarter, the S&P 500 is up 121.03 points.
The Nasdaq Composite Index gained 8.68 points, to 1838.22. The Nasdaq rose 10.75 points, for the week, now up 14 of the last 16 weeks. For the second quarter, the Nasdaq has gained 309.63 points. If it can hold the gain it will be the Nasdaq's highest quarterly percentage advance in six years.
The market was subdued after news that the personal savings rate was 6.9% in May, the highest level since December 1993. "This is of caution by consumers, with their buckling down putting a damper on hopes for fresh investment into general spending and the stock market," said Andre Bakhos, president of Princeton Financial Group.
Asian share markets are mixed on Monday after a choppy session on Wall Street on Friday, with companies in the Kumho Asiana group pushing up in Seoul but investors selling down Daiwa Securities in Tokyo.
Japan's Nikkei ended 1.0% lower and Hong Kong's Hang Seng was last down 0.3%.
European stock prices are seen opening mixed on Monday, reflecting the meandering mood swings in global markets as investors wait for the crucial US labour market data later this week.
- I-Net Bridge