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JSE cuts gains to end flat

The JSE ended fairly flat on Tuesday‚ giving away earlier gains after the US central bank chairman gave no indication of taking further steps to stimulate the world’s largest economy.

At 17:00 local time‚ the JSE all-share index was down 0.06% at 33‚706.57 points‚ with gold miners losing 1.38%‚ but platinum shares added 0.40%‚ while resources shed 0.61%.

The JSE. Photo: Simphiwe Mbokazi. Credit: Independent Newspapers

Financials were flat (-0.01%)‚ banking stocks rose 0.21% and industrials gained 0.26%.

The rand was trading at 8.22 to the US dollar‚ from 8.22 at the JSE’s close on Monday‚ while gold changed hands at US$1‚576.15 a troy ounce from US$1‚591.69/oz at the JSE’s previous close and platinum was quoted at $1‚411.70/oz‚ from $1‚417.50/oz previously.

“The markets expected more definitive action from the US Fed Chairman to lift the US economy‚” said David Shapiro‚ director at Sasfin Securities. “Investors are as a result left with nothing to build their positions on.”

European markets also lost ground in late trade‚ with the UK's FTSE 100 down 0.55%.

The US Federal Reserve chairman Ben Bernanke struck a more negative tone in describing the US economic outlook in testimony prepared for the Senate Banking Committee‚ Dow Jones Newswires reported.

The Dow Jones Industrial Average was down 0.28% at 17:26 SA time. - I-Net Bridge

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