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Johannesburg - The JSE was trading in negative terrain on Monday morning despite gold miners continuing their rebound amid a firmer gold price.
At 9:42 the All Share [JSE:J203] index was trading 0.60% softer at 39 341.32 points‚ with the Top 40 index giving back 0.70%.
Gold miners gained 1.65%‚ platinums added 0.59% after recent losses‚ while industrials dipped 0.88% amid a firmer rand environment.
Meanwhile Asian stocks were lower as Chinese manufacturing data showed a continued slowdown in factory activity‚ while the effect of Japan’s main business sentiment survey faded early in the session‚ Dow Jones Newswires reported.
Investors were digesting China’s official Purchasing Managers’ Index for June‚ which came out at 50.1‚ in line with economist expectations. A score above 50 indicates an expansion‚ below 50 a contraction‚ of factory activity. The official number for May was 50.8‚ the newswire reported.
The Nikkei closed 0.42% firmer after the Bank of Japan’s quarterly business sentiment survey‚ the tankan‚ came out at its highest level in more than two years.
European markets were seen trading firmer with London’s FTSE 100 up 0.89% in morning trade.
Last week was all about US Federal Reserve Bank talk‚ Rand Merchant Bank said in a morning note.
“A string of Fed policy members vied to ease market concerns‚ although we ended on Friday with a hawkish comment that has put global markets under pressure this morning‚” the bank said.
“This week it is back to the data. The US Institute for Supply Management (ISM) figure will be released today‚ but the main attention will be on the nonfarm payrolls figure‚ squeezed between the weekend and US Independence Day on Thursday. Assuming no major data surprises‚ it looks as if tapering will start in September. The market now seems to accept this‚ so the taper tantrum is over‚” RMB said.
“For us‚ the key issue is whether foreign investors will return to emerging markets. Initial signs are positive. We saw decent buying of both bonds and equities in the last three days of last week‚” it said.
On the JSE‚ Exxaro retreated 2.29% to R142.24 and rand hedge stocks SABMiller(SAB) and Compagnie Richemont (CFR) fell 1.07% to R474.88 and 1.62% to R86.60 respectively due to a firmer rand.
Gold miners Harmony (HAR) lifted 2.35% to R36.59‚ Gold Fields (GFI) picked up 2.01% to R51.79 and Sibanye (SGL) gained 3.66% to R7.36.
Impala Platinum was up 1.24% at R94.15‚ while Anglo American Platinum (AMS) shed 2.38% to R287.99.
