Money SA economy
The JSE stayed in the red at noon on Tuesday as resurfacing concerns over Europe sparked a worldwide sell-off, hitting resources stocks particularly hard.
Despite new worries about the state of European banks, local bank stocks were resilient, while financial counters were virtually flat.
At 12.06pm local time the JSE all share index had lost 1.08% and resources shed 1.70%. Platinum miners dropped 1.56% and gold miners fell 0.89%. But banks rose 0.79%, while financials were slightly down 0.05% and industrials were 0.94% weaker. Gold was quoted at $1 235.24/oz from $1 253.39/oz at the JSE's previous close, while platinum was at $1 582.50/oz from $1 604.50/oz at the JSE's last close.
A trader said the local market was generally weaker on the back of concerns over Europe after Fitch Ratings cut BNP Paribas' long-term debt rating to AA- from AA. Standard & Poor's also weighed on sentiment following its review of seven Spanish banks.
The trader said the local banking sector was generally positive, ignoring these European developments. Resources stocks were weaker on lower commodity prices and increased currency volatility.
Globally, Asian shares ended mostly lower on Tuesday as investors took a breather amid doubts over the pace at which the yuan could appreciate and a lack of excitement on Wall Street after China's decision, according to Dow Jones Newswires.
European stocks also fell on Tuesday, unable to sustain the momentum of the previous session as a more cautious view emerged of China's new currency strategy.
On the JSE, Anglo gave up R4.70 or 1.56% to R296.50, and BHP Billiton lost R5.32 or 2.37% to R219.02. Sasol declined R4.51 or 1.52% to R291.49.
