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JSE weakens further

Aug 31 2010 13:31 I-Net Bridge

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Johannesburg - The JSE was weaker in afternoon trade on Tuesday, tracking global stocks.

By 12:02 local time the JSE all share index had lost 0.69%. Resources were 1.54% lower. Platinum miners shed 2.21% while Gold miners lost 0.79%.

Banks were down 1.18%, financials gave up 0.97% and industrials were also down 0.41%.

The rand was bid at R7.38 to the dollar from R7.32 at the JSE's close on Monday. Gold was quoted at $1 233.53 a troy ounce from $1 236.40/oz at the JSE's previous close, while platinum was at $1 508.00/oz from $1 531.50/oz before.

"We really stared off our day weaker on overnight performance in the US.

We've also seen weakness in the Asian markets, with Japan failing to curb the strength of their currency," a local trader said.

The Bank of Japan on Monday tried to weaken the yen by increasing the supply of fixed-rate loans to banks. The move however failed to stop the currency's strength.

Dow Jones Newswires reports that Asian stock markets mostly declined on Tuesday, with Japanese shares finishing at a fresh 16-month low as investors fretted over the adverse impact of a rising yen on the nation's economy and exporters.

The day started on a poor note for regional markets after soft US data, including weak readings on personal income and Texas-area manufacturing activity, triggered a sell-off on Wall Street and hurt investor sentiment. Analysts said the markets were looking past last week's comments from US Federal Reserve Chairperson Ben Bernanke that the Fed would act decisively to prevent the US economy from sliding sharply.

"The Bernanke factor wore off in the US after a day, and generally the economic data coming out this week, including US August non farm payrolls report and ISM manufacturing report, won't look very good. Unless there are definitive new measures to support growth the market's going to remain weak," said Hyundai Securities analyst Bae Sung-young in Seoul.

European stocks fell sharply Tuesday, tracking losses in the US and Asia, as investors continue to fret about the prospects for global economic growth. In London, the FTSE 100 index was 0.95% down.

 
 
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