JSE soft amid profit taking

Johannesburg - The JSE was straight into the red on Thursday morning amid profit taking on the local bourse.

At 09:17 the JSE all share index was down 0.54%, with resources 0.73% softer, the gold mining index shed 0.42% and platinum miners were 0.53% worse off.

Banks declined 0.72%, financials slipped 0.60% lower, and industrials dropped 0.34%.

The rand was bid at 7.51 to the dollar, from 7.47 seen at the JSE's close on Wednesday. Gold was quoted at $1 134.76 a troy ounce from $1 126.74 at the JSE's last close. Platinum was at $1 568/oz from $1 565/oz at the JSE's last close.

A local equities trader said: "The local market has had a few strong days, so we have seen some profit taking this morning already.

"Metal prices are off their highs," she said, adding that both Asia and US futures also pointed downwards.

Markets are also expected to track an ECB rate decisions in the UK, with initial jobless claims out in the US later, the trader said.

Dow Jones Newswires reports that European stocks are called to open lower Thursday following a late sell-off on Wall Street, says Cameron Peacock at IG Markets. Calls FTSE 100 down 29 points at 5 504.

Bank of England and ECB rate decisions are at 1200 GMT and 12:45 GMT, respectively. "Neither has had an easy ride with the downward revision to 3Q GDP in the UK increasing concern over a double-dip recession, while euro zone fringe countries remain fragile," says Peacock.

He adds anything [in the central banks' accompanying statements] that points towards further stimulus could weigh on sentiment. Revised eurozone 4Q GDP is at 10:00 GMT. In the US, initial jobless claims at 13:30 GMT are among the highlights.

In Asia, regional stocks were mostly lower with mining stocks supporting Australian market though investors in China, Hong Kong were cautious ahead of Chinese parliament's key annual meetings Friday. Nikkei was down 1.0%, with the Hang Seng 1.15% lower.

- I-Net Bridge