JSE in red on global sentiment
Oct 28 2009 17:35
Johannesburg - Current global sentiment pushed
the local bourse into the red on Wednesday, while a stronger US dollar also
weighed on commodities.
At 17:00 the JSE all share index had lost 1.74%, with resources falling
2.58%, platinum producers off 1.80% and gold counters losing 1.86%.
Banks declined 1.53%, financials gave up 1.44% and industrials weakened
0.99%.
The rand was bid at 7.76 to the dollar from 7.65 when the JSE closed on
Tuesday. Gold was quoted at $1 033 a troy ounce from $1nbsp;036.65/oz just
before the JSE's last close, and platinum was at $1 312/oz, from $1 309.50/oz at its previous close.
A local trader said: "Continued dollar strength weighed on commodities,
while current global sentiment is negative.
"Rand weakness did help mining stocks a little, but internationally,
sentiment is weak. In the US, housing data came in worse than expected, and
traders there will be keeping a watchful eye on GDP figures out tomorrow,"
he said.
Dow Jones Newswire reports that US stocks traded slightly lower on
Wednesday as a gain for telecommunications companies was offset by data
showing weakness in the housing market.
Recently, the Dow Jones Industrial Average traded down 10 points, or
0.1%, to 9 869.
Stocks had opened slightly lower as some disappointing earnings and a
worse-than-expected report on durable goods weighed on trading. The market
then pushed to new lows as the Commerce Department said new home sales
unexpectedly fell in September following five consecutive increases as
tighter credit and unemployment fears kept buyers away.
Single-family home sales fell by 3.6% to a seasonally adjusted annual
rate of 402 000 compared with the prior month. Economists surveyed by Dow
Jones Newswires expected September sales to rise 2.6% to 440 000.
- I-Net Bridge
