The JSE is set to start Wednesday’s session in negative territory taking its cue from a weaker close on the United States markets overnight, traders said.
By 8.40am, near-dated all share index futures (Alsis) were 53 points weaker at 14 250 after 130 contracts had changed hands, while industrial index futures (Indis) were untraded after finishing at 11 575.
The rand was bid at 6,44 per dollar from 6,42 when the local stock exchange closed on Tuesday, while gold was quoted at $444,90 a troy ounce from $443,55/oz when the JSE last closed.
“The local market is likely to follow the weaker US markets overnight,” a trader said.
AFX reports that Wall Street’s main stock averages closed sharply lower at four-week lows on Tuesday, as fresh economic data and earnings results from Wal-Mart Stores added to worries about high energy prices taking a bite out of growth.
The Dow Jones Industrial Average dropped 120,93 points, or 1,1%, to 10 513. Only 4 of 30 Dow components — Citigroup, Verizon, Walt Disney and Altria — finished the session in positive territory.
The S&P 500 fell 14,53 points, or 1,2%, to 1 219.
The Nasdaq Composite Index sank 29,98 points, or 1,4%, to 2 143. In addition to marking a four-week low, the decline represented the Nasdaq’s biggest one-day drop in points since April 22.
In Tokyo on Wednesday morning, share prices closed slightly lower as some investors cashed in gains made during the broad market’s week long rise, dealers said.
They noted however that the downside was limited with overall sentiment still positive after the government and the Bank of Japan’s recent upbeat assessment of the economy.
The Nikkei 225 index closed down 42,55 points or 0,35 pct at 12 273,12. – I-Net Bridge