Johannesburg - The JSE edged lower in opening trade on Thursday, following the direction of world markets with commodity stocks leading the downside.
By 9.16am, the JSE all share index had edged down 0.28 percent, with resources weakening 0.86 percent, platinum counters losing 1.07 percent and gold miners falling 2.42 percent. Banks were flat, down 0.02 percent, financials inched 0.26 percent higher and industrials were flat, up 0.07 percent.
The rand was last bid at R8.05 to the dollar from R8.06 when the JSE closed on Wednesday. Gold was quoted at $969.78 per ounce from $978.30 at the JSE's last close, and platinum was at $1 243 per ounce, from $1 233.50 at its previous close.
"We have edged lower this morning, just following world markets. The Dow was down last night and Asia was weak this morning," an equities trader said.
"The commodity stocks are leading the downside. We have had a good run lately and now we are seeing some profit taking. We are in a consolidation phase, but I think these are the levels where the market should be.
"I don't think we will see the market crash to 20 000. I think we can safely say we have seen the bottom of the market and may see a recovery in the next six to 12 months."
"All in all, it's not that bad, it's not a train smash, we are seeing consolidation," he said.
Dow Jones Newswires reported the steady climb of commodities stocks came to a halt on Wednesday as a sell-off for Alcoa, Valero, and a host of other energy and materials companies paced a broader market decline.
Overall, the DJIA closed down 65.63 points, or 0.75 percent, to 8 675.24, marking its first decline in five days. But thanks to a late rally, the index ended well off its low point for the day of 8598. The S&P 500 lost 12.98 points, or 1.37 percent, to 931.76, snapping a four-day winning streak. The Nasdaq Composite slid 10.88, or 0.59 percent, to 1 825.92.
Weighing on the previously surging commodities stocks were mixed signals on jobs and service-sector activity.
These data points weighed on sentiment concerning domestic demand ahead of a key jobs report later in the week.
Furthermore, crude-oil futures slid $2.43 to $66.12 a barrel following new data showing far more robust US inventories of the commodity than expected, as demand apparently hasn't picked up even if economic sentiment has.
Most Asian stock markets are lower on Thursday, with declines led by resource plays amid a commodity price pullback. Several markets, though, were off their lows, supporting by buying in financial stocks.
Japan's Nikkei ended down 0.7 percent and Hong Kong's Hang Seng was last down 2.4 percent.
European bourses are called to start marginally higher as investors start to consider whether commodity stocks still have more potential for gains.
Back in Johannesburg, Anglo American edged up 20c to R234.50 while BHP Billiton lost R1.10 to R196.40. Petrochemicals group Sasol gave up R4.03, or 1.34 percent, to R296.97. Paper group Sappi weakened 57c, or 2.11 percent, to R26.43.
ArcelorMittal was down R2.12, or 2.10 percent, to R98.88 but Kumba Iron Ore was up R2.99, or 1.59 percent, to R190.99.
Among gold miners, AngloGold Ashanti shed R7.92, or 2.38 percent, to R325.06, Gold Fields gave up R3.50, or 3.37 percent, to R100.50 Harmony was off R1.27, or 1.35 percent, to R92.88. Platinum miner Anglo Platinum declined R2.01 to R593 and Impala Platinum lost R2.14, or 1.14 percent, to R184.87.
In diversified miners, Exxaro weakened R1.15, or 1.42 percent, to R79.85.
Banking group Standard Bank eased 48c to R84.62 but Nedbank was up R1.39, or 1.54 percent, to R91.39. Financial services group Old Mutual edged up 9c to R9.54 and Sanlam collected 24c, or 1.43 percent, to R17.06.
Sugar group Illovo weakened 98c, or 3.50 percent, to R27.02 and Tongaat-Hulett lost 84c, or 1.11 percent, to R75.11.
Retailer Truworths collected 50c, or 1.36 percent, to R37.25, JD Group added 66c, or 1.64 percent, to R40.86 and Mr Price gained 41c, or 1.49 percent, to R27.90. However, Steinhoff was off 24c, or 1.88 percent, to R12.55.
Construction group Murray & Roberts put on 62c, or 1.24 percent, to R50.72.
Telecommunications group Vodacom rose 56c, or 1.04 percent, to R54.36 and Telkom collected 37c, or 1.02 percent, to R36.57, but MTN Group declined 95c to R120.05.
