Resources, gold lead JSE down

Johannesburg - The JSE saw a red opening on Thursday morning led by weaker resources and profit taking on gold stocks, after the gold price hit record levels yesterday. With a flurry of international economic data out later, markets are expected to be volatile, according to a local trader.

At 09:30 the JSE all share index had shed 0.70%, with resources wavering 1.27%, gold miners slipping 3.20% and platinum producers down 1.04%.

Banks were flat, down 0.18%, as were financials, down 0.03%, and industrials weakened 0.41%.

The rand was bid at 7.66 to the dollar from 7.67 when the JSE closed on Wednesday. Gold was quoted at $1 085.35 a troy ounce from $1 090.47 at the JSE's last close, and platinum was at $1 355.50/oz, from $1 364/oz at its previous close.

"Resources have come under a little bit of pressure this morning, with BHP Billiton 1.4% down in Australia. Gold stocks have also come off yesterday's levels, following a record gold price. We are seeing a bit of profit taking there," said a trader.

"There is a quite a lot of economic data out in Europe and in the US today, so markets are expected to be volatile," he added. Dow Jones Newswire reported that European stocks are called to open lower on Thursday following the late sell off on Wall Street, as initial relief after the FOMC statement failed to hold, said Cameron Peacock at IG Markets. He called London's FTSE 100 down 38 points at 5 070. He added that with ECB and BOE rate verdicts due, as well as the UK announcement on quantitative easing, "the potential for further volatility in the short term certainly cannot be overlooked".

On the economic calendar, eurozone retail sales are at 10:00 GMT, BOE rate decision and ECB rate decision are at 12:00 GMT and 12:45 GMT, respectively. US, jobless claims and non-farm productivity are at 13:30 GMT.

- I-Net Bridge