Johannesburg - Despite a red gloss to South
African stocks, markets recovered somewhat throughout the day on Friday, led
by Europe with the local bourse improving throughout the day.
US markets opened strongly in the red, having to play catch up following
a Thanksgiving holiday yesterday. The Dow was set to absorb the news from
Dubai that gripped global markets yesterday.
At 17:00 the JSE all share index was 0.80% weaker, led by gold miners,
which gave up 1.89%. Resources fell 0.93%, but platinum miners gained 0.35%.
Banks added 0.58%, but financials dipped 0.56% and industrials moved
0.78% lower.
The rand was bid at 7.46 to the dollar, from 7.48 when the JSE closed on
Thursday. Gold was quoted at $1 163.85 a troy ounce from $1 182.60/oz at
the JSE's last close, and platinum was at $1 431/oz, from $1 451/oz the
bourse's previous close.
A local trader said that markets had held up well on the local front,
having factored in the news from Dubai. "We seemed to recover throughout the
day, despite ending down, led by Europe and the FTSE in particular."
The trader pointed to light volume, adding that the US had opened lower,
having yet to factor in the news from the Arab emirates.
According to Dow Jones Newswires US stocks opened lower on Friday in a
broad decline led by energy and metals companies, as concerns about the
impact of debt problems at Dubai World sent crude oil and metals futures
sharply lower while the dollar rose.
The Dow Jones Industrial Average was recently down 206 points, or 2%, to
10 258. All 30 of its components were in the red.
The broad stock declines and moves into the safety of the dollar and
Treasuries come as fears have been spreading since late Wednesday about the
potential fallout of debt problems at Dubai World, the city state's largest
corporate entity, which asked creditors for a six-month stay on repayment of
its $60bn in debts. US markets were unable to immediately react as
they were closed for the Thanksgiving holiday on Thursday, but the Asia and
Europe markets sold off on Thursday on the news.
Still, shares of some European banks were already rebounding on Friday.
Michael Church, president of Addison Capital, said that gives him hope that
the impact of Dubai World's debt problems might not be too drastic for the
US stock market.
The US stock market closes at 1pm, EST, and Wall Street trading is
known for being particularly thin the day after Thanksgiving.
- I-Net Bridge