JSE relatively flat amid consolidationComment on this story
The JSE hovered in flat territory at noon on Monday‚ looking to consolidate after a fairly strong run on Friday‚ which was linked to the European Union leaders’ resolve to deal with eurozone debt crisis.
At 12:08 local time‚ the JSE all-share index was down 0.13% to 33‚665.06 points‚ with resources losing 0.55%‚ gold shares shedding 1.14% and platinum counters giving up 1.66%.
Financials lifted 0.43%‚ banking stocks gained 0.74%‚ while industrials were 0.06% in the red.
The rand firmed to 8.13 to the US dollar‚ from 8.18 at the JSE’s close on Friday‚ while gold was quoted at US$1‚592.84 a troy ounce from US$1‚596.53/oz at the JSE’s previous close and platinum was at $1‚439/oz‚ from $1‚425.70/oz previously.
“The market is moving sideways‚ digesting the strong moves we had on Friday as we begin the third quarter‚” said Ryan Wibberley‚ equity dealer at Investec Asset Management. “There weren’t surprises in the series of PMI data points we saw this morning.”
Manufacturing activity in SA plunged to its lowest level since August 2011 in June‚ with new sales orders and business activity hit the hardest‚ a key survey showed.
Analysts at Standard Bank said in a note however‚ that SA was not alone as manufacturing sectors globally were struggling.
The eurozone PMI contracted for an eleventh consecutive month in June‚ while the Chinese PMI fell closer to the benchmark line (at 50) in June.
The US PMI has also lost upward momentum in recent months and is making its way to the dividing line between contraction and expansion.
European stocks have held up well on the day‚ with London’s FTSE 100 index up 0.60% at noon SA time.
Asian markets etched out small gains as a rally in commodity stocks was slightly offset by continued weakness in the Chinese manufacturing sector.
Japan’s Nikkei ended the session flat‚ while Hong Kong was closed for a public holiday.
Due to a technical glitch‚ individual share prices are not available currently. - I-Net Bridge