The JSE dropped sharply in early trade on Monday, led south by Asian markets and early signs that European markets are tipped to slide amid renewed concerns about the United States housing turmoil.
At 9.17am, the all-share index was off 1,44%. Resources fell 1,74%, and the gold mining and platinum mining indices gave up 0,71% and 1,85% respectively. Industrials fell 0,92%, financials shed 0,92% and banks tumbled 2,54%
The rand was bid at R6,84 to the dollar, from R6,80 when the JSE closed on Friday, while gold was quoted at $761,15 a troy ounce from $759,95/oz at the JSE’s last close.
“The whole thing started on Friday in the US due to bad earnings among the US companies. Asia dropped and we followed suit,” said Makwe Masilela, a trader at Nehawu Securities.
He added that European markets were also expected to start Monday’s session down as US Dow Jones Industrial Futures provided little incentive for buyers to return into the market.
“I don’t expect any bargain hunters today. Maybe some time during the week,” said Masilela. — I-Net Bridge