Johannesburg - The JSE was flat in early trade on
Thursday with no firm direction from eastern markets, with a trader saying
that Wednesday's disappointing housing data in the US were still having an
impact on the market.
However, the trader noted that positive momentum still in the market was
limiting further falls.
At 09:18 the JSE all share index was flat, down 0.03%, with resources
inching up 0.18%. Platinum and gold producers weakened 0.19% and 0.29%
respectively.
Banks were down 0.46%, financials declined 0.26% and industrials were
flat, down 0.16%.
The rand was bid at 7.45 to the dollar, from 7.43 when the JSE closed on
Wednesday. Gold was quoted at $1 144.53 a troy ounce from $1 147.45 at
the JSE's last close, and platinum was at $1 449/oz, from $1 437/oz at
its previous close.
"We are flat this morning. We closed down yesterday on the US housing
data and that is still having an impact on the market," the trader said.
"It's surprising that we are not down more, the momentum in the market
is keeping us up. For the rest of the day, we are likely to remain
sideways," he said.
Dow Jones Newswire reported that technology and consumer stocks declined
on Wednesday, breaking the DJIA's three-day winning streak, as disappointing
earnings guidance from Autodesk weighed on technology and an unexpected
decline in home construction last month hurt consumer companies including JC
Penney.
After climbing higher in nine of the past 10 sessions to a new closing
high for 2009, the DJIA closed down 11.11 points, or 0.11%, at 10426.31.
Leading the move lower were several technology firms, including Hewlett-
Packard, off 84 cents, or 1.6%, to 50.48, and United Technologies, off 73
cents, or 1.1%, at 68.81.
Setting up the decline was a weaker-than-expected full-year profit
outlook and 72% fiscal third-quarter profit decline for Autodesk. The
design-software company fell 2.80, or 10%, to 24.20, on Nasdaq.
In addition,
on-demand software company Salesforce.com lost 2, or 3.1%, to 63.61, on
broad disappointment even after the company again raised its fiscal-year
forecast.
Asian stock markets are mixed in quiet trade on Thursday with no strong
lead from the US to help affirm a clear direction.
In Japan, the Nikkei ended down 1.3% and Hong Kong's Hang Seng was last
down 0.5%.
European bourses are seen starting mixed as investors start to tackle
the notion that the year's massive rally may commence winding down.
- I-Net Bridge