JSE hurt in worldwide sell-off

The JSE ended weaker on Thursday as US stocks slid along with a decline in oil prices and a strengthening in the dollar.

For most of the session, however, the local bourse was flat as some semblance of calm returned to world markets after the pounding they have endured over the past two days owing to lingering concerns over possible contagion from the European debt crisis.

The JSE all share index ened 0.38% lower, with resources losing 0.91%, and platinum miners giving up 2.26%. Gold miners however finished 0.40% firmer, with banks closing 1.16% higher and financials adding 0.18%. Industrials were 0.13% weaker.

The rand was bid at R7.67 to the dollar from R7.61 at the JSE's close on Wednesday. Gold was quoted at  $1 184.47 a troy ounce from $1 172.29/oz at the JSE's last close. Platinum was at $1 664/oz from $1 650/oz at the JSE's last close.

"The market is very volatile and extremely difficult to call at the moment. However, we've seen a turnaround in some sectors that were oversold and I suspect that some bargain hunters are now coming into the market as some of the stocks are at levels that are starting to look attractive," a local equities trader said.

Dow Jones Newswires reported that US stocks slipped on Thursday as the dollar strengthened and oil prices slid, cutting into energy stocks and disappointing April retail stores undermined consumer stocks.

The Dow Jones Industrial Average was down 60 points at 10809 when the JSE closed.

Hewlett-Packard fell 1.9% after an Indian government agency accused the computer firm of evading $322m in taxes, according to a Wall Street Journal report citing people familiar with the matter. Bank of America slid 2.3%, while General Electric fell 1.9% and Caterpillar shed 1.7%. Energy components weakened as crude-oil prices fell below $79 a barrel. Chevron slid 0.9% and Exxon fell 0.8%.
   
Retailers' April sales across the industry spectrum came in lower than even the muted expectations going into Thursday's same-store sales reports. Those that disappointed include discounter Costco Wholesale, large retailers Target and Gap, and teen retailers Buckle and Hot Topic. Costco's shares dropped 3.1%, while Target fell 1.4%, Gap slid 3.9%, Buckle declined 6.6% and Hot Topic dropped 3.2%.

Other data showed US productivity rose faster than expected in the first three months of the year, though the gains were more modest than in previous quarters as the recovery continued to take hold. Meanwhile, the number of US workers filing new claims for jobless benefits fell for a third consecutive time last week, although the size of the drop was slightly smaller than expected. The report comes a day ahead of the government's report on April nonfarm payrolls.

Investors said the jobless data did little to brighten the labor market outlook.

  - I-Net Bridge