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The JSE reversed its strong morning gains by the close on Thursday, with traders offering a host of varying reasons for its demise including profit taking, negative Automatic Data Processing (ADP) data, and concerns over the state of Hungary and its impact on emerging markets.
The local bourse had opened 1.5% firmer on Thursday, but during the course of the afternoon shipped more than 500 points, much to the confusion of local traders.
The JSE all share index ended 0.41% weaker, with gold miners 0.17% lower and Platinum miners down 0.86%. Resources were flat, 0.08% higher. Banks were the biggest fallers, down 1.84%, financials lost 0.74%, and industrials shed 0.74%. Gold was quoted at $1,216.05/oz from $1,219.16/oz at the JSE's previous close. Platinum was at $1,546/oz from $1,548/oz at the JSE's last close.
A local equities trader said: "There is some concern about Hungary, and its potential impact particularly over emerging markets. We also saw quite a big flow on miners, so perhaps some foreigners have been active in the market," he said.
Hungary must speed up its fiscal consolidation and pursue further structural reform to pull itself out of a "delicate situation", European Commission President Jose Manuel Barroso said Thursday, as noted by Dow Jones Newswires.
Dow Jones newswires reports that stocks edged up Thursday as investors focused on positive signs from a mixed medley of economic data but remained cautious ahead of Friday's key jobs report.
Asian stock markets ended higher Thursday. Investors took inspiration from the Dow Jones Industrial Average's 2.2% rise Wednesday, its third- biggest one-day gain this year, helped by a better-than-expected pending home sales report.
On the JSE, Anglo added R2.96 or 1.02% to R293.37 but BHP Billiton was 69 cents weaker at R207.41. Sasol gained R1.72 to R280.46.
