Money SA economy
Although still in the red, the JSE came off its earlier low levels by noon on Monday on the back of a recovery in Dow futures, a local equities trader said.
At 12.02pm the JSE all share index had weakened 0.61%, with resources easing 0.33% and platinum producers down 2.59%. However, gold miners added 1.68%. Banks declined 0.75%, financials were 0.76% lower and industrials gave up 0.83%.
Gold was quoted at $1,054.05/oz from $1,039.55 at the JSE's last close, and platinum was at $1,334/oz, from $1,320/oz at its previous close.
"Eastern markets were down with the Dow this morning. On balance, I think things are still quite positive, although there is scepticism that the market has run too much," the trader said. "We are seeing profit taking, but there are buyers that come in on these dips. Markets are quite volatile and there are a lot of speculative movements.”
Dow Jones Newswire reported that the FTSE 100 trades kept a toehold in positive territory as traders digest final October UK manufacturing PMI which strongly surprised on the upside at 53.7 against 50.2 expected.
US stocks are called to open higher in a small relief bounce after the Shanghai Composite index gained 2.7% on strong manufacturing data, said David Morrison at GFT.
A slightly weaker dollar is also providing support, but any reversal in sentiment which sees rising yields and the dollar start to rally, could lead to a fall in risk assets, he adds.
Among equity movers on the JSE, Anglo American plc was unchanged at R292 and BHP Billiton was off 91 cents to R215. Petrochemicals group Sasol lost R1.11 to R294.69.
