The JSE posted further losses, opening broadly lower on Thursday on the back of renewed concerns about the longevity of the global economic recovery.
At 9.43am local time the JSE all share index had lost 0.38 percent and resources fell 0.71 percent. Platinum miners gave up 0.89 percent and gold miners dropped 0.71 percent. Banks moved 0.14 percent lower, financials edged down 0.09 percent and industrials were 0.18 percent weaker.
The rand was bid at R7.49/$ from R7.54/$ at the JSE's close on Wednesday. Gold was quoted at $1 231.28/oz from $1 231.66/oz at the JSE's previous close, while platinum was at $1 563.50/oz from $1 565.00/oz at the JSE's last close.
Mpho Mojalefa, trader at BJM Private Client Services, said the local market continued a pullback seen over the last two days.
Mojalefa said the main factor driving market sentiment was poor US economic data.
Markets around the world looked nervous following disappointing US new home sales, which came out on Wednesday.
On Tuesday, the US also reported an unexpected drop in US existing home sales.
Mojalefa said investors were questioning how quickly the economy would recovery, noting the US Federal Reserve signalled it intended to keep interest rates near zero for a longer time.
This suggested that the "recovery is extremely fragile", Mojalefa said.
The Dow Jones Newswire reported that traders warned that underlying worries remain following disappointing US new-home sales figures and the Federal Reserve's more cautious assessment of the health of the economy.
The Fed also warned on Wednesday that Europe's fiscal problems were taking their toll on the US recovery.
"While the dovish Federal Open Market Committee means rates will stay at the current exceptionally low level for a long time, being supportive for equities, markets nevertheless focused on the gloomier economic outlook as seen by the Fed," said Credit Agricole.
"Their renewed cautiousness follows a loss of momentum in housing and a poor pace of private-sector jobs growth recently," Rabobank added.
On Wall Street on Wednesday, blue-chip stocks ended little changed after the Federal Reserve kept interest rates at record lows, supporting a rise in JPMorgan Chase, but energy companies Chevron and Exxon slid as oil prices fell.
The Federal Reserve's policy-making body kept key interest rates near zero, as expected, but cast its policy statement with more downbeat language, compared with its previous statement in late April.
Still, Fed officials continued to say they expect to keep the benchmark Federal-funds rate low for an "extended period". - I-Net Bridge
