East leads JSE into the red
Nov 26 2009 11:02
Johannesburg - The JSE traded in the red in the
opening session on Thursday, pushed lower by pressured eastern markets while
the US celebrates Thanksgiving today.
At 09:33 the JSE all share index was 0.51% weaker, led by a 0.65% drop for
platinum miners and a 0.51% decline in resources. Gold miners, however,
advanced 0.58%.
Banks weakened 0.73%, financials gave up 0.67% and industrials moved 0.41%
lower.
The rand was bid at 7.36 to the dollar, from 7.42 when the JSE closed on
Wednesday. Gold was quoted at $1 188.47 a troy ounce from $1 180.50 at the
JSE's last close, and platinum was at $1 468/oz, from $1 471/oz the
bourse's previous close.
A local trader said: "Brent oil was down, while eastern markets are under
pressure this morning, which has transferred to a negative start for the local
bourse with Anglo, Billiton and Sasol all trading down.
"On the local front, Naspers seemingly produced good results. With
Thanksgiving in the US today, we don't expect too much activity, but let's wait
and see - for now there is very little to provide significant direction."
Dow Jones Newswires reported that crude oil futures receded in Asian trade
on Thursday amid weaker Asian equity markets and a slight recovery in the dollar, paring strong overnight gains.
European stock markets are expected to open lower on Thursday, with
investors reluctant to put more cash on the table with the US markets closed
for Thanksgiving and Asian stocks weaker.
Meanwhile, the dollar remains weak against the yen, gold has hit a fresh
high and oil prices have eased back.
Share trading is likely to be muted as Wall Street will be on holiday and
little fundamental data is scheduled. It's likely that global equity markets
will plod along for the rest of the week, with little impetus to move higher,
said Ben Potter, research analyst at IG Markets.
"There may be some cause for cheer, however, on the basis that we didn't
see a big sell off on Wall Street ahead of Thursday's close. But any further
meaningful direction is going to be difficult to find in the short term,"
Potter added.
Japan's Nikkei 225 traded down 0.6%, while South Korea's Kospi Composite
was off 0.7%. Hong Kong's Hang Seng Index slid 1.6% and China's Shanghai
Composite index was down 3.5%.
"Equity markets will be sluggish for the next few days with the US market
winding down for Thanksgiving," said David Halliday, associate director at
Macquarie Private Wealth. US markets are closed Thursday, and will reopen on Friday.
Elsewhere, spot gold hit another record in Asian trading on Thursday, at
$1 195.50 per troy ounce, extending its gains after strong buying late in the
US session, news of more central bank buying of gold and a weaker dollar.
- I-Net Bridge
