ALAN FINLAY & Reuters, Johannesburg | Monday 4.00pm.
THE JSE slipped lower on Monday on the back of weaker Asian markets, worse-than-expected first quarter gross domestic product data, and Friday’s dip in US markets.
The all-share finished 0,60% or 43 points lower. Industrials closed down 1,28% or 104 points and financials ended 0,74% or 65 points in the red. Only resources made some gains, finishing 0,28% or 13 points up, boosted by a firmer platinum price which by late afternoon was as high as $15 up on the day.
The rand made some gains off its earlier lows and at 4pm was trading at R7,07 to the dollar and R10,51 to the pound. Dealers said exporter dollar sales limited the local currency’s losses.
Although gold firmed on international markets, trading $1 up at $274,15 an ounce by late afternoon, gold shares slipped on the local bourse, ending 1,35% or 12 points lower.
Switzerland’s central bank sold another 8,9 tons of gold on Monday, bringing the total since sales started at the beginning of May to 15,4 tons.
Analysts said investors might take positions in counters a day ahead of Britain’s next 25-ton auction of reserve bullion on Tuesday. However London traders said the gold price is expected to show little reaction to auction.
US stocks ended sharply lower on Friday as investors worried that the Federal Reserve will be aggressive in raising interest rates this year.
However local GDP data, which stood at 0,9% for the first quarter, the worst in two years, suggested that the reserve bank might decrease, rather than increase the repo rate in the near term.
Hong Kong’s Hang-Seng ended 2,33% or 337 points off, while the Nikkei lost 2,80% or 472 points on the day. By 4pm the Dow Jones was up 0,55% or 58 points down.