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Johannesburg - The JSE was mired in red at noon on Friday as negative
sentiment weighed on global markets ahead of the release of second-quarter gross domestic product (GDP)
data in the US, after a run of disappointing fundamental data which traders
say is raising fears of a double dip.
Profit-taking, particularly in the resources and banking sectors, was also adding to the weakness in the local market, traders said.
By 12:00 local time the JSE All-share index had lost 1.40%, with banks off 2.04% and financials down 1.50%. Resources were 1.69% weaker, with platinum counters down 0.77% and golds flat at -0.07%. Industrials were down 1.05%.
The rand was bid at R7.35 to the dollar from R7.32 at the JSE's close on Thursday. Gold was quoted at $1 169.61 a troy ounce from $1 162.70/oz at the JSE's previous close, while platinum was unchanged at $1 558/oz.
"It's not surprising that we're down today. We've had a very strong month. We're basically just continuing to take our cue from global markets, but we're also seeing some profit taking coming into the market," a local trader said.
The profit taking was mainly in resources and banks.
Anglo American [JSE:AGL], the world's third largest resources group, on Friday reported a 31% drop in its first half profit to $2.06bn, or $1.71 a share, from $2.97bn, or $2.47 a share, previously.
The dealer confirmed that Anglo, a benchmark, counter was sold in early trade, and this affected sentiment.
Dow Jones Newswires reported that investors' nerves were on edge on Friday ahead of the release of US second-quarter economic growth data, with Wall Street set for opening losses.
Futures on the Dow Jones Industrial Average dropped 40 points to 10369. S&P 500 futures fell 5.70 points to 1091.30 and Nasdaq 100 futures declined 8.50 points to 1848.70.
The Dow fell 0.3% on Thursday, dropping for a second session.
Asian stocks ended mostly lower on Friday, with Japan's Nikkei Stock Average dropping 1.6%.
European stocks were alsao lower. The Stoxx Europe 600 index fell 0.5% in late morning trade following a flood of earnings news from major French firms.
The Commerce Department is due to release its estimate for second-quarter gross domestic product. Economists expect growth to slow a bit to a 2.5% rate in the April-June quarter, compared to 2.7% growth in the first quarter.
"Watch today's numbers and also watch out for the annual revisions that are released," Deutsche Bank strategists wrote in a note. "It could change a lot of perceptions about the shape of the recession and subsequent recovery."
In addition to the GDP data, a report on business activity in the Chicago area will be released, to be followed by data on July consumer sentiment.
- I-Net Bridge
Profit-taking, particularly in the resources and banking sectors, was also adding to the weakness in the local market, traders said.
By 12:00 local time the JSE All-share index had lost 1.40%, with banks off 2.04% and financials down 1.50%. Resources were 1.69% weaker, with platinum counters down 0.77% and golds flat at -0.07%. Industrials were down 1.05%.
The rand was bid at R7.35 to the dollar from R7.32 at the JSE's close on Thursday. Gold was quoted at $1 169.61 a troy ounce from $1 162.70/oz at the JSE's previous close, while platinum was unchanged at $1 558/oz.
"It's not surprising that we're down today. We've had a very strong month. We're basically just continuing to take our cue from global markets, but we're also seeing some profit taking coming into the market," a local trader said.
The profit taking was mainly in resources and banks.
Anglo American [JSE:AGL], the world's third largest resources group, on Friday reported a 31% drop in its first half profit to $2.06bn, or $1.71 a share, from $2.97bn, or $2.47 a share, previously.
The dealer confirmed that Anglo, a benchmark, counter was sold in early trade, and this affected sentiment.
Dow Jones Newswires reported that investors' nerves were on edge on Friday ahead of the release of US second-quarter economic growth data, with Wall Street set for opening losses.
Futures on the Dow Jones Industrial Average dropped 40 points to 10369. S&P 500 futures fell 5.70 points to 1091.30 and Nasdaq 100 futures declined 8.50 points to 1848.70.
The Dow fell 0.3% on Thursday, dropping for a second session.
Asian stocks ended mostly lower on Friday, with Japan's Nikkei Stock Average dropping 1.6%.
European stocks were alsao lower. The Stoxx Europe 600 index fell 0.5% in late morning trade following a flood of earnings news from major French firms.
The Commerce Department is due to release its estimate for second-quarter gross domestic product. Economists expect growth to slow a bit to a 2.5% rate in the April-June quarter, compared to 2.7% growth in the first quarter.
"Watch today's numbers and also watch out for the annual revisions that are released," Deutsche Bank strategists wrote in a note. "It could change a lot of perceptions about the shape of the recession and subsequent recovery."
In addition to the GDP data, a report on business activity in the Chicago area will be released, to be followed by data on July consumer sentiment.
- I-Net Bridge
