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JSE down 1% as resources weigh

The JSE remained in the red at midday on Friday, weighed down by weaker resources. However, banks and financial stocks were a feature as they continued their gains of the past two days.

By 12.10pm, the all-share index was off 1,18%, led by a 2,52% decline in resources and a 5,67% fall in the platinum mining index. However, after being weaker earlier, the gold mining index was up 0,36%.

Industrials shed 0,26%, but banks were up 1,34% and financials were 0,72% better.

The rand was bid at 7,59 to the US dollar from 7,55 when the JSE closed on Thursday, while gold was quoted at $963,85 a troy ounce from $972,50/oz at the JSE’s last close.

A local equities trader said it was not surprising that the local market was weaker after Thursday’s strong rally.

A local trader said the Dow had firmed 1,85% overnight, but markets in Asia and Europe are seeing some profit taking this morning.

He added that Dow futures are also lower.

While banks and financials remained a feature on the JSE, resources were lower.

There has been a correction in commodities prices, which started on Thursday, with the gold price down from levels seen late yesterday and the platinum price also weaker. This, together with the relatively firm rand, which has remained below the 7,60 per dollar level, was weighing on resources, the trader said.

“You get the sense that some of the guys might be coming back into the market, seeing value in some of the banking stocks at current levels,” he noted.

He added that funds, which had sat on the sidelines waiting for buying opportunities, may be thinking that now is the time.

He concluded that he did not expect much action for the rest of the session, with position squaring ahead of the weekend likely to be the order of the day.

On the JSE, resource giant Anglo American shed R10,99, or 2,57%, to R416 and BHP Billiton retreated 7,67 rand, or 3,12%, to R238,50.

Sasol fell R1,55 to R416,70. Brent crude was last at
$133,40 per barrel, up $2,37 from its overnight close.

Gold miner AngloGold Ashanti was up R3,56, or 1,3%, to R278,06, and Gold Fields fell 51 cents to R100,49.

Among platinum miners, Anglo Platinum was off R64, or 6,10%, to R985 and Impala Platinum shed R14,50, or 6,07%, to R224,50. The platinum price was last at $1 877 an ounce, down $9/oz from its overnight levels.

Brewer SABMiller eased R4,11, or 2,37%, to R169,39, Richemont gave up 12 cents to R43,91 and, but consumer foods brands maker Tiger Brands was up R3,50, or 2,43%, to R147,50.

Among banks, Standard Bank was R1,68, or 1,99%, higher at R86,18 and Absa added R1,65, or 1,76%, to R95,65. However, Nedbank fell 84 cents to R101,71. – I-Net Bridge

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