JSE stays flat, lacks direction

Johannesburg - The JSE remained flat by noon on Tuesday in what a trader said was a mixed session with the bourse lacking direction from global markets.

By 11:57, the JSE all share index had edged up 0.37%, with resources collecting 0.44%. Gold counters were up 1.33% but platinum miners eased 0.26%. Banks gained 1.09%, financials collected 0.48% and industrials edged up 0.24%.

The rand was last bid at R7.76 to the dollar from R7.79 when the JSE closed on Monday. Gold was quoted at $940.60/oz a troy ounce from $936.66/oz at the JSE's last close, and platinum was at $1 195.50/oz, from $1 182/oz at its previous close.

"We are looking okay at the moment, it's mixed at the moment," the trader said.

"The banks are the real features of the day, they are looking strong. Metals are also not looking that bad. It's very directionless at the moment. The Dow was up last night and the East was up this morning, but then we saw the Hang Seng pull back. We are not getting too much direction.

"Locally, the money supply figures showed that spending was still under pressure. Gold shares are better despite the strong rand. The gold price has also moved up. These stocks have come down a lot lately so we are also probably seeing some bargain hunting there," he said.

"The dollar is weak at the moment and that is a reason for the strong rand. We need to see some direction from overseas," he added.

Dow Jones Newswires reports that the FTSE 100 was flat, continuing to trade within tight range, with low volumes and low volatility appear to cause a lack of clear direction, said Joshua Raymond, strategist at City Index. "We have very quiet trading sessions, low volumes and the VIX at its August lows and these factors are exemplifying the fact that the markets are unlikely to move anywhere quickly at the moment." He added that the "miners and defensive equities are helping to lift the mood somewhat, but overall we are seeing sideways movements and very tight trading ranges."

The FTSE 100 was last flat, up 0.05%.

US stocks are tipped to open largely flat, with traders wondering if there will be a repeat of Monday with prices taking off to the upside once the cash market opens, said GFT.

He called DJIA to open unchanged at 8529.38, and S&P 500 up 1 point.

"Today is the last day of the quarter so there may be some last-minute 'window dressing' as fund managers mess around with their portfolios," added GFT.

- I-Net Bridge