JSE off its highs‚ awaiting data

2012-12-06 11:12

Johannesburg — The JSE All Share [JSE: J203] index on Thursday morning was just shy of the record high reached on Wednesday‚ with some profit-taking and market consolidation seen‚ while market participants are awaiting a deluge of economic figures due on Thursday morning.

The third-quarter current account deficit will be released at 10:00‚ followed by the South African Chamber of Commerce and Industry’s (SACCI’s) November business confidence print at 11:30.
Further afield‚ the eurozone will release its third-quarter gross domestic product (GDP) figures at noon and the Bank of England is announcing its decision on interest rates at 14:45.

At 9:35 the JSE all share index was flat (-0.05%) at 38 169.23 points‚ with the Top 40 - (Tradeable) [JSE:J200] softer (-0.10%) at 33 894.00 points.

Platinum stocks show mild upside‚ adding 0.10%‚ while gold miners led the downside‚ followed by banks‚ falling 1.74% and 0.39% respectively.

Asian markets were mixed‚ with the Japanese Nikkei 225 adding 0.81% and the Hong Kong Hang Seng index 0.19% softer‚ after closing 2.16% higher on Wednesday due to possible monetary stimulus in the pipeline in China.
Meanwhile‚ the fiscal cliff negotiations in the US continue.

RMB said: “The market mood has been boosted by President Barack Obama saying a deal could be achieved in a week if Republicans agreed to tax increases — even though this was said more in hope than as a prediction. Negotiations have become more complicated by the suggestion that the fiscal cliff and the debt ceiling‚ the limit on bond issuance that will be hit in February‚ will resolved all in one bill.”

On local markets‚ the tug of war between the bond-positive global backdrop and the deteriorating domestic milieu will be brought into focus with the release of third quarter 2012 current account data in the Reserve Bank’s Quarterly Bulletin‚ RMB said.

“We expect a slight widening in the deficit‚ from 6.4% of GDP to 6.6% which is only slightly below the consensus forecast of 6.7%. While the deterioration in the current account balance is expected to have been due to the widening trade deficit‚ incomes payments pose the main risk to the number‚” RMB said.