After some big losses earlier in the session, the JSE staged a strong recovery in afternoon trade on Monday, managing a flat close after a stronger opening on Wall Street.
The JSE all share index ended flat (-0.13%), with resources also flat (+0.14%). Platinum miners however closed 1.53% firmer with gold miners up 1.19%. But banks finished 0.49% lower, with financials ending 0.57% weaker and industrials down 0.18%. Gold was quoted at $1,230.74//oz from $1,224.29/oz at the JSE's last close. Platinum was at $1,687.50/oz from $1,715.50/oz at the JSE's last close.
"We've basically just been tracking overseas markets today. With a big Asian sell-off this morning, we were quite a bit weaker at the start. But the market recovered nicely, supported by a stronger US open and some bargain buying which we saw coming in late in the afternoon," a local equities trader said.
Dow Jones Newswires reports that US stocks bounced between gains and losses in choppy trading Monday, as cautious investors flocked toward safer assets, while riskier energy and financials slipped.
When the JSE closed, the Dow Jones Industrial Average was down 27 points, or 0.2%, to 10 595.
Meanwhile energy components slipped as crude-oil prices fell to below $71 a barrel. Chevron slid 0.7%, while Exxon fell 1.1%.
Market watchers said the recent slide in oil prices and surge in gold futures reflects investors' new hesitations.