Money SA economy
The JSE had recouped some of its losses by noon on Monday, signalling investors were shrugging off negative news such as the downgrade of Ireland's credit rating and the dismal performance on Wall Street.
By noon local time the JSE all share index had fallen 0.17%. Resources had gained 0.31%, but platinum miners had shed 1.15% and gold miners had lost 0.23%. Banks had declined 0.10%, financials gave up 0.22% and industrials had slid 0.60%. Gold was quoted at $1 191.44 a troy ounce from $1 192.80/oz at the JSE's previous close, while platinum was at $1 514/oz from $1 516.50/oz before.
A trader said domestic investors ignored negative news, including Ireland's downgrade and the sell-off in US equities on Friday, which was sparked by disappointing earnings from the Bank of America, Citigroup and General Electric and poor consumer sentiment data.
Moody's Investors Service Inc. announced it had downgraded Ireland's credit rating.
The trader said foreign investors were pushing share prices higher, with the FTSE 100 posting gains and US futures indicating a strong opening on Wall Street.
"It is a bullish sign when investors focus on company valuations rather than bad news," the trader said, adding that the turnaround in local equities might be underway.
Dow Jones Newswires reported that most Asian markets dropped on Monday after steep losses on Wall Street on Friday prompted selling, though the magnitude of the fall was limited by a strong rebound for Chinese stocks and merger-and-acquisition news.
On the JSE, Anglo American plc rose R1.67 to R276.67 and BHP Billiton gained R2.13 or 1.01% to R213.63. Sasol was also up R1.20 to R281.20.
