The JSE opened softer on Tuesday in line with global markets weakened by ongoing European debt concerns and new conflict between North and South Korea
The JSE opened softer on Tuesday in line with global markets weakened by ongoing European debt concerns and new conflict between North and South Korea.
By 09:13 local time the JSE all share index was down 0.88%, with resources losing 1.02%. Platinum miners dropped a percentage point, but gold stocks, the only positive of the morning, firmed 0.50%. Banks lost 0.91%, financials were down 0.87% and industrials lost 0.75%.
The rand was bid at 7.04 to the dollar from 6.98 at the JSE's close on Monday. Gold was quoted at US$1,368.13 a troy ounce from $1,355.75/oz at the JSE's previous close, while platinum was at $1,662/oz from $1,661/oz before.
Susan Lendrum, a sales trader for Nedgroup Securities said: "The market as expected opened weaker in line with global markets. The rand is weaker, the gold price is looking better and the gold sector is the only positive one at the moment with the others down.
"A fight between North and South Korea is weighing on global markets as is the ongoing concerns over European debt," she said.
"Banks came under pressure on the US market yesterday which put pressure on the SA market so that's one area which is potentially weighing the market down the most," Lendrum said.
Dow Jones Newswires reported that European bourses were seen broadly flat with government debt being seen higher. The euro is in the ranges while the pound is mixed and both spot gold and oil futures are lower.
The Newswires also reported that Asian shares traded down Tuesday as resources plays took a hit amid investor nervousness China may introduce further tightening moves and over Europe's debt crisis, while New Zealand Oil & Gas was hammered by the fallout from the Pike River Coal mining accident.
South Korea's Kospi Composite lost 1.1%. China's Shanghai Composite dropped 2.5%, while Hong Kong's Hang Seng Index shed 1.8%. Markets in Japan were closed for a public holiday.
Dow Jones Industrial Average futures were down 37 points in screen trade.
Markets, which had initially responded positively to Ireland's formal request for aid over the weekend, have started to fret over the risk that other euro-zone nations, possibly Portugal or Spain, could be hit by a similar fiscal and debt crisis.
"The market is just fatigued," said RBS head of sales, Justin Gallagher in Sydney. "Europe has been something of a time bomb for while now and there's still this undercurrent of structural issues that haven't been dealt with," he said.
