JSE weaker after technical delays

Johannesburg – The JSE was weaker at noon on Monday as earlier delays slowed trading, which only started at 10:30 - 90 minutes later than its normal 09:00 opening - due to a technical glitch.

By noon local time the JSE All-share index had lost 0.60%. Resources fell 0.95%, and gold producers were virtually flat at 0.07%. Platinum miners defied the trend, rallying 1.23%. Banks declined 0.50%, financials gave up 0.28%, and industrials fell 0.40%.

The rand was bid at R7.60 to the dollar from R7.57 at the JSE's last close. Gold was quoted at $1 205.72 a troy ounce from $1 208.54/oz at the JSE's previous close, while platinum was at $1 524/oz from $1 534/oz before.

A local trader said the domestic market had a slow start after delays, noting that investors were focused on the start of the earnings season in the US.

The JSE said the technical issue was due to the exchange's "international connectivity on the equities market".

"The JSE opened the equities market at 10:30 today after identifying and resolving the cause of the technical issues affecting the exchange's international connectivity on the market.

"The JSE's international links are provided by MTN and the two companies are refining the analysis of the cause," the company said.

Dow Jones Newswires reports that most Asian markets advanced on Monday as strong Chinese exports data and extended gains on Wall Street aided sentiment in the region. 

European stocks pared early gains to trade little changed on Monday, with volumes remaining low across the board, as investors kept to the sidelines ahead of the start of the US earnings season. 

"European indices are marking time today after last week's rally. Most are waiting to see what the US does next as their major indexes are meeting significant upside resistance," said David Morrison at GFT.

"The Chinese trade data add to the bullish leads inherited from Wall Street," said IG Markets strategist Ben Potter. "They suggest the global economy is still reasonably strong."
   
Stocks on Wall Street looked set to open lower on Monday following their best week in nearly a year, as investors exercised caution ahead of the kick-off of earnings season by aluminium giant Alcoa.

"We are all waiting for Alcoa earnings. We have all the sovereign debt issues in Europe pretty much priced in," said Christian Tegllund Blaabjerg, chief equity strategist at Saxo Bank.

"There is no news out today that can spur the market, so it's all about earnings.

"Earnings expectations have been revised lower for the past month and so I think we're going to get a massive surprise to the upside," Blaabjerg said.

  - I-Net Bridge