Johannesburg - The JSE was flat in early trade on
Tuesday on the back of weaker Asian markets in what a local trader said was
likely to be a choppy session.
At 09:17 the JSE all share index was flat, down 0.01%, as were
resources, up 0.04%. Platinum and gold producers collected 0.23% and 0.25%
respectively.
Banks weakened 0.22%, financials were flat, down 0.02% and industrials
eased 0.13%.
The rand was bid at 7.37 to the dollar, from 7.33 when the JSE closed on
Monday. Gold was quoted at $1 136.57 a troy ounce from $1 132.85 at the
JSE's last close, and platinum was at $1 439.50/oz, from $1 448.50/oz at
its previous close.
"We are pretty much flat this morning. The dollar is relatively weak and
these commodity prices are holding on. The yen strengthened this morning
against the dollar and that put their exports under pressure, and that is
why the eastern markets were lower."
"I think we can expect this. We have had a good two weeks and we can
expect to see some profit taking. No one knows which way the market will go.
I think it will be a choppy day," he said.
"I don't think the MPC will have an impact on the market if there are no
surprises," he added.
The SA Reserve Bank's Monetary Policy Committee announces its interest
rate decision at 3pm.
Dow Jones Newswire reported that a robust sign of economic growth in
Asia sparked a rally for commodities prices and stocks, with Exxon Mobil,
Alcoa and other energy and materials firms pacing all three major indexes to
new closing highs on the year.
For Monday, the DJIA closed up 136.49 points, or 1.33%, to 10406.96.
Within the index, 26 of its 30 components finished in the green as the Dow
closed higher for the eighth time in nine sessions.
The S&P 500 tacked on 15.82, or 1.45%, to 1109.30, with the Dow and S&P
500 both marking their highest closes since Oct. 2, 2008.
Gains on the session were lead by energy and materials firm, with Exxon
Mobil up 1.96, or 2.7%, to 74.43, and Alcoa gaining 43 cents, or 3.3%, to
13.61.
Both sectors were helped by a report from Japan's government that said
the nation's gross domestic product grew better than expectations last
quarter. Following the report, commodities prices climbed higher around the
globe, while the dollar moved lower against both the yen and the euro, with
the US dollar index hitting a fresh 15-month low.
Most Asian share markets are slightly lower on Tuesday, with some broad
fatigue setting in after recent gains.
Japan's Nikkei ended off 0.6% and Hong Kong's Hang Seng was last down
0.4%.
European bourses are due to pause their rally with markets expected to
start a bit lower on profit taking in financials and materials stocks.
- I-Net Bridge