JSE in red amid profit taking

Johannesburg - The JSE opened up in the red on Monday amid profit taking. With little news flow about today, a trader said he expected very small volumes both locally and internationally as markets look to consolidate.

At 09:25 the JSE all share index had given up 0.40%, with resources down 0.59%, platinum counters shedding 0.75% and gold miners subsiding 0.37%.

Banks declined 0.36%, financials slipped 0.45% lower and industrials were 0.22% weaker.

The rand was bid at 7.46 to the dollar from 7.41 just before the JSE closed on Friday. Gold was quoted at $1 054.28 a troy ounce from $1 059.15/oz just before the JSE's last close, and platinum was at $1 359.50/oz, from $1 370.50/oz at its previous close.

"We have seen some profit taking this morning, and it follows a few strains of disappointing earnings results on Friday. The US market is still earnings-driven at the moment."

"There is not too much news flow today, so we expect very little volume both on the local market, and internationally, as markets look to consolidate," he said.

Dow Jones Newswire said that European stocks are called to open flat on Monday, with a degree of profit taking likely after the gains seen last week, said James Hughes at CMC Markets. He called London's FTSE 100 down 3 points at 5239.6.

Amid a lack of important earnings or economic news, it may be a case of looking to the commodity prices again for some of the moves, said Hughes. He noted banks were likely to be in focus again after a strong week last week.

In the US, Chicago Fed National Activity Index is at 12:30 GMT and Dallas Fed Manufacturing Outlook Survey is at 16:30.

- I-Net Bridge