Money SA economy
The JSE opened lower on Wednesday as risk aversion returned, spurred on by disappointing US economic data and lingering anxiety about the health of European banks.
At 9.43am local time the JSE all share index had lost 0.91% and resources fell 1.28%. Platinum miners shed 1.76% and gold miners dropped 0.56%. Banks moved 1.33% lower, financials edged down 0.83% and industrials were 0.59% weaker. Gold was quoted at $1 242.95/oz from $1 242.32/oz at the JSE's previous close, while platinum was at $1 579.00/oz from $1 594.00/oz at the JSE's last close.
A trader said the local market opened down 240 points on the back of an unexpected drop in US existing home sales, which raised questions about the sustainability of global recovery.
The trader said concerns about the European debt crisis, which resurfaced on Monday, added to the negative sentiment. The strong yen and the rising gold price, the trader said, underscored widespread risk-aversion.
On the global front, Asian stocks were weaker on Wednesday, weighed by losses on Wall Street on Tuesday with energy plays among the biggest losers, the Dow Jones Newswires reported.
European stocks also opened lower on Wednesday, following disappointing US housing data.
On the JSE, Anglo gave up R4.30 or 1.43% to R296.40, and BHP Billiton lost R2.99 or 1.34% to R219.56. Sasol declined R2.90 to R287.60.
