The JSE opened little changed on Tuesday, with gold stocks edging up while the other counters were generally weaker.
The JSE opened little changed on Tuesday, with gold stocks edging up while the other counters were generally weaker. The gold price hit fresh record levels amid renewed concerns about European sovereign debt, a trader said.
By 09:25 local time the JSE all share index was down 0.05%, with financials falling 0.32%, banks shedding 0.65% and industrials declining 0.09%. But gold stocks climbed 1.85% and resources eked out a small 0.13% gain, while platinum miners lost 0.09%
The rand was bid at 6.84 to the dollar from at 6.87 at the JSE's close on Monday. Gold was quoted at US$1,411.67 a troy ounce from $1,389.59/oz at the JSE's previous close, while platinum was at $1,781.50/oz from $1,754.00/oz before.
The trader said the local market was flat at the start, noting that gold stocks rose strongly on the back of the glittering bullion price.
Having breached the US$1,400 per ounce level on Monday, spot gold reached fresh highs again on Tuesday morning with a best of 1,413.44/oz.
A local gold dealer said: "Gold is still reacting to quantitative easing in the US, with the dollar very weak. I think we will see an extended run today and further into the week to 1,420/oz-1,430/oz with some easing possibly towards the end of the week, back down to just below $1,395/oz.
"There is still a lot of physical demand out there. It's wedding season in India."
The trader said Wall Street's weakness on Monday added some downward pressure on the local bourse, while investors were cautious ahead of the G20 summit in South Korea.
Dow Jones Newswires reported that Asian share markets were mostly down Tuesday, with property companies weighing on Hong Kong and China markets while losses in Woodside Petroleum dented the market in Sydney.
Japan's Nikkei Share Average ended 0.39% lower and Hong Kong's Hang Seng Index was last 0.56% weaker. Overnight the Dow closed down 37 points.
