Resources lead downside on JSE

Johannesburg - Resources led the downside as the JSE remained slightly weaker by noon on Thursday, with a trader saying that there was still some nervousness regarding the future direction of markets.

By 12:07, the JSE all share index had weakened 0.69% with resources giving up 1.07%, but platinum counters edged up 0.70% and gold miners were flat, up 0.16%. Banks were also flat, up 0.02%, while financials edged down 0.24% and industrials were off 0.47%.

The rand was last bid at R8.07 to the dollar from R8.05 when the JSE closed on Wednesday. Gold was quoted at $933.50/oz a troy ounce from $927.80/oz at the JSE's last close, and platinum was at $1 177.50/oz, from $1 174.50/oz at its previous close.

"We are slightly lower. We saw some good gains yesterday and now there is some position squaring ahead of the weekend," the trader said.

"Also, I think people are still jittery and nervous about the direction of the market. Yesterday commodities ticked up, but today they are stable. Banks and financials also had a big run yesterday.

"We are also waiting for the interest rates decision, with the consensus being 50 basis points. The US will dictate further direction," he said.

Dow Jones Newswires reports that the FTSE 100 added to losses as banks and miners exerted downward pressure. Philip Gillet at IG Index said the market seemed to be focusing on longer-term problems such as deflation and rising global unemployment, despite tentative signs of stability or improvement in some areas. US GDP is expected at 12:30 GMT along with jobless claims. Gillet will eye the latter in particular. He said traders were looking for further signs that the jobs market was staging a recovery after indications of a slight improvement in US jobs last week.

The FTSE 100 had weakened 0.88%.

US stocks are seen opening higher on Thursday, recovering some ground lost after Wednesday's FOMC statement, said Ian Griffiths at CMC Markets.

"Today's session is likely to be dominated by Bernanke's speech but with GDP numbers and weekly jobless claims due for release there will be a lot more for traders to get their teeth into."

He called DJIA up 50 points and S&P 500 up 6.6 points.

In focus are 12:30 GMT US 1Q GDP, final, 12:30 GMT US June 20 Jobless Claims, and 14:00 GMT Bernanke testifies before House Committee on Bank Of America's Merrill Lynch acquisition. DJIA front month futures contract trades +0.5% at 8301.0 and the S&P 500 trades +0.6% at 903.6.

- I-Net Bridge