Money SA economy
The JSE was mired in red at noon on Friday as negative sentiment weighed on global markets ahead of the release of Q2 GDP data in the US after a run of disappointing fundamental data which traders say is raising fears of a double-dip.
Profit taking, particularly in the resources and banking sectors, was also adding to the weakness in the local market, traders said. By 12.00pm local time the JSE all share index had lost 1.40%, with banks off 2.04% and financials down 1.50%. Resources were 1.69% weaker, with platinum counters down 0.77% and golds flat at -0.07%. Industrials were down 1.05%. Gold was quoted at $1 169.61 a troy ounce from $1 162.70/oz at the JSE's previous close, while platinum was unchanged at $1 558/oz.
"It's not surprising that we're down today. We've had a very strong month. We're basically just continuing to take our cue from global markets, but we're also seeing some profit taking coming into the market," a local trader said.
The profit taking was mainly in resources and banks.
Anglo American, the world's third largest resources group, on Friday reported a 31% drop in its first half profit to $2.06 billion, or $1.71 a share, from $2.97 billion, or $2.47 a share, previously.
Dow Jones Newswires reported that investors' nerves were on edge Friday ahead of the release of U.S. second-quarter economic growth data, with Wall Street set for opening losses.
Asian stocks ended mostly lower Friday, with Japan's Nikkei Stock Average dropping 1.6%. European stocks were also lower.
On the JSE, Anglo was down R5.50 or 1.86% at R290.30, while BHP Billiton had lost R6.50, or 2.83%, to R223. Sasol gave up R3.66 or 1.24% to R290.34.
