JSE down on weak resources

Johannesburg - The JSE ended weaker on Thursday pressured by softer resource counters which lost momentum on the back of the strong local currency.

By 17:00, the JSE all share index had shed 0.87%, with resources falling 2.31% and gold counters easing 0.33%. However, platinum miners edged up 0.26%.

Banks were up 1.06%, financials collected 0.83% and industrials were flat, up 0.02%.

The rand was last bid at 8.04 to the dollar from 8.06 when the JSE closed on Wednesday. Gold was quoted at US$974.28/oz a troy ounce from US$978.30/oz at the JSE's last close, and platinum was at US$1 261.50/oz, from US$1 233.50/oz at its previous close.

"The biggest reason is the resource stocks. They are weighing on the index and are contributing to these falls and keeping the market under pressure," a local trader said.

"We have seen some big moves recently and now we are seeing some profit taking, with the strong rand putting these resources under pressure.

"We are eyeing the US for further direction. As the week ends, we may see speculative buyers coming back at these levels. But I don't see any big movements either way," he said.

Dow Jones Newswires reports that US stocks were mixed in early trading on Thursday as the market struggled for direction amid a debate on whether an economic recovery will materialise.

Back in Johannesburg, Anglo American (AGL) gave up 3.88% to R225.20 and BHP Billiton (BHP) lost 4.32% to R188.97.

Petrochemicals group Sasol (SOL) weakened R1 to R300.

Among gold miners, AngloGold Ashanti (ANG) shed R1.99 to R330.99, Gold Fields (GFI) eased 10c to R103.90 and Harmony (HAR) wakened 15c to R94.

Cement manufacturer Pretoria Portland Cement (PPC) put on 2.52% to R30.50. The group earlier announced that its new Dwaalboom kiln 2 (Batsweledi) had performed at above warranted output in May.

- I-Net Bridge