The JSE Securities Exchange South Africa opened weaker on Thursday as a slightly stronger currency compared to recent days took its toll on heavyweight rand hedge stocks. A softer close on the Dow overnight also had a negative effect.
At 0920, the all share index was down 0,26%. The all share industrial and resources indices had dipped 0,10% and 0,11% respectively. Financials fell 0,58% in early trade, while the banks index lost 0,33%. The gold mining index gave up 1,15% and the platinum mining index eased 0,21%.
The rand was trading at 7,57 to the dollar, little changed from when the JSE closed on Wednesday. However, it had traded above 7,70 per dollar on Wednesday morning.
At $344,60 an ounce, gold was also little changed from the JSE’s last close.
“It has been a very slow start. We are a bit weaker, with the Dow closing softer and European markets as well as US futures down this morning. The rand is also a bit stronger, although it already started to strengthen yesterday,” a dealer said.
She added that after the JSE’s strong run earlier in the week, the profit taking, which started on Wednesday, was continuing.
In early trade, London-listed diversified resources group Anglo American shed 37 cents to R119,53.
AngloGold fell 1,26% or three rand to R235, Gold Fields was off 1,65% or R1,50 to R89,50 and Harmony dipped 50 cents to R96,50.
Swiss-listed luxury goods group Richemont (RCH) was five cents weaker at R13 while Remgro retreated 1,53% or R1,01 to R65.
London-listed financial services group Old Mutual fell 1,65% or 19 cents to R11,30.
On the upside, BHP Billiton bounced 1,15% or 47 cents to R41,20, while mining house Kumba climbed 30 cents to R31,30.
The Wall Street Journal reports that big stocks pulled back after their recent advance, as some investors took profits and worried whether coming earnings reports will justify the gains so far.
Technology stocks, however, continued upward, their fifth rise in the past six sessions.
The Dow Jones Industrial Average, which had jumped more than 237 points in the first five trading days this month, gave back 66,88 points, or 0,73%, to finish at 9,156.21.
The Nasdaq Composite Index, dominated by technology stocks, edged up another 0,06%, or 1 point, to 1,747.46. However, the Standard & Poor’s 500-stock index fell 0,56%, or 5,63 points, to 1,002.21. – I-Net Bridge