JSE sheds gains

Johannesburg - The JSE was flat in midday trade on Wednesday surrendering its opening gains as the FTSE, and US futures, drifted into negative territory.

By noon local time the JSE all share index had gained 0.11%, as resources gained 0.55%, gold miners added 1.13%, but platinum miners shipped 1.67%. Banks lost 0.80%, financials wavered 0.25% and industrials declined 0.13%.

The rand was bid at R7.35 to the dollar unchanged from the level at the JSE's close on Tuesday. Gold was quoted at $1 162.60 a troy ounce from $1 159.64/oz at the JSE's previous close, while platinum was at $1 538.50/oz from $1 536.00/oz before.

A trader said: "We opened firmer today, but drifted lower, tracking a negative FTSE and Dow futures." He noted that durable goods orders out later in the US might move the market.

"CPI doesn't usually factor, and that was the case again today," he said.

The increase in South Africa's consumer price index (CPI), which is used by the South African Reserve Bank (Sarb) for its inflation target, was 4.2% year-on-year (y/y) in June from 4.6% y/y in May, Statistics South Africa (Stats SA) said on Wednesday. It remains well within the target band of between 3% and 6%.

CPI was at 0.0% month-on-month (m/m) from 0.2% m/m in May.

Dow Jones Newswires reported that US stocks are expected to open higher on Wednesday, with a positive session in Asia overnight and relatively upbeat session in Europe offering support. Also, "US stock index futures are a touch firmer this morning, suggesting that equities will open higher," added David Morrison of GFT. "The bulls will be hoping that equities can consolidate and build support at current levels. If so, then the market looks set for further gains, despite a constant stream of weak or
indifferent economic data," he said.

On the data front, durable goods orders are at 12:30 GMT. Earnings wise, Boeing, ConocoPhillips and Comcast, are all set to report.

Asian markets ended mostly higher on Wednesday, with Japanese stocks charging ahead as solid corporate earnings from Canon put some extra gloss on the already better outlook for exporters.

Chinese stocks also jumped after the central bank said there was little risk of a "double dip" recession.

China's Shanghai Composite climbed 2.3% to finish at a two-month high, South Korea's Kospi advanced 0.3%, Taiwan's Taiex rose 0.5% and Hong Kong's Hang Seng Index gained 0.6%.

Japan's Nikkei Stock Average was the best performer of the region, surging 2.7%.

  - I-Net Bridge