Resources lead JSE lower

Johannesburg - Resources led the JSE lower on Tuesday amid profit taking following a good short-term run.

At 09:20, the JSE all share index had fallen 0.62%, with resources losing 1.22%. Platinum miners shed 0.17% and gold miners were 0.23% lower.

Banks declined 0.30%, with financials flat, down 0.02%, while industrials gave up 0.26%.

The rand was bid at 7.83 to the dollar, from 7.81 when the JSE closed on Monday. Gold was quoted at $945.60 a troy ounce from $954.05/oz at the JSE's last close, and platinum was at $1,245/oz, from $1,236.50/oz at its previous close.

A local trader said: "We are seeing a bit of profit taking this morning after yet another good short-term run. Resources, in particular, have performed well in recent sessions, but led us down.

"Dow futures are lower following negative Asian markets, but consumer confidence figures are out later and that should provide further direction, while on the local front, inflation figures are out tomorrow," the trader said.

Dow Jones Newswires reported that European stocks are expected to open in the red on Tuesday, following subdued sessions in the US and Asia.

Matt Buckland, a dealer at CMC Markets, said in light of the recent movements in equity markets, traders are trying to establish just how far along any economic recovery actually is.

"If... we realise that a complete turnaround is still some way off, then we could well see the bears come back for another run lower on the major indices," Buckland said.

"The volume was just about as slow as we've seen all summer," said Art Hogan, chief market analyst at Jefferies. "But it could be the quiet before the storm with all the economic data, especially related to housing, that we expect this week."

News that US President Barack Obama will announce the nomination of Ben Bernanke to a second term as Federal Reserve chairman on Tuesday had little impact on markets as it was widely expected. The news was considered a mild positive.

- I-Net Bridge