The JSE recouped some of its morning losses by midday on Tuesday.
The JSE recouped some of its morning losses by midday on Tuesday, pushed by international markets and improving commodities. Following earlier profit taking however, the local bourse kept its nose in the red, for now.
A local dealer noted muted trade ahead of the Federal Open Market Committee meeting tomorrow. The general consensus is that the Fed will reveal a new round of quantitative easing to boost the US economy.
By noon local time the JSE all share index was down 0.28%, with gold stocks losing 0.9%, resources shedding 0.57% and platinum miners coming off 0.84%. Industrials gathered 0.03%, but financials were 0.33% weaker and banks were 0.6% worse off.
The rand was bid at 6.95 to the dollar from at 6.98 at the JSE's close on Monday. Gold was quoted at US$1,357.70 a troy ounce from $1,351.09/oz at the JSE's previous close, while platinum was at $1,714.50/oz from $1,712.50/oz before.
"We saw some profit taking this morning, but stronger commodities and positive international markets have helped the JSE to re-gather some of its earlier losses. Global markets have been helped by positive PMI data in Europe, and strong manufacturing data out of China yesterday.
"Provided that oversees markets maintain their momentum, the JSE should start to play catch-up, although volume has dropped off somewhat ahead of the FOMC meeting in the US," he said.
Dow Jones Newswires reports that US stocks are expected to start higher Tuesday. Joshua Raymond at City Index said there appears to be a contest between those investors who wish to sit on the sidelines ahead of key data announcements over the coming days, and those speculative buyers who are following dollar and commodity prices and buying into commodity and energy stocks. He said buying here is helping the upside. Meanwhile, the FOMC begins its long-awaited two-day policy meeting.
European stocks edged higher after France, Germany and the euro zone collectively published purchasing manager indexes. The final euro zone manufacturing PMI, based on a survey of 3,000 manufacturing firms, rose to 54.6 in October from an eight-month low of 53.7 in September, Markit said.
In Asia the Hang Seng was marginally up, by 0.08%, along with the Nikkei, which ended 0.06% firmer.
On the JSE, Anglo American lost 175 cents to R321.75, Sasol shipped R1.56 to R318.44 and BHP Billiton wavered a rand to R251.
Among gold miners, AngloGold Ashanti dropped R2.17 to R324.40 and GoldFields declined R1.72 or 1.57% at R107.88.
Anglo Platinum shipped R3.56 to R691.44, Impala Platinum lost R1.98 at 197.51 rand and Lonmin slipped R2.95 or 1.48% lower at R195.85.
Kumba Iron Ore picked up R2.15 to R399.
Among industrials, Imperial advanced R3.11 or 2.64% to R120.80 and BAT was up 86 cents to R269.65.
Aspen dropped R1.09 or 1.16% to R92.91. Famous Brands gained 70 cents or 1.64% at R43.50.
Paper and pulp group Mondi lost 98 cents or 1.67% at R57.62, and Sappi moved 46 cents or 1.31% lower at R34.61.
Mobile phone operator MTN pocketed R1.43 or 1.15% to R126.23.
In the banking sector, Nedbank lost R1.75, or 1.32% to R131.25, RMB Holdings fell 39 cents or 1.06% at R36.46, but life insurer Discovery gained 71 cents or 1.8% at R40.20.
Retailer JD Group climbed 133 cents or 2.63% to R51.98. The group said earlier that its headline earnings and earnings per share for the 12 months ended August 2010 are expected to be between 300 and 310 cents per share.
The headline earnings and earnings per share for the 12 months ended August 2009 was 44.4 cents and 45.8 cents per share respectively.
The results of the previous corresponding period included the effect of a tax settlement of 338 million rand.
The group said that should the effect of the tax settlement be disregarded in the prior corresponding period, the HEPS and EPS would have been 251.4 and 252.8 cents per share respectively.
Mr Price profited 88 cents or 1.37% at R65.09, but Shoprite lost a rand at R100, along with Spar , down R1.19 or 1.23% at R95.27.
Construction group Murray & Roberts Holdings improved 52 cents or 1.19% at R44.21, Basil Read garnered 19 cents or 1.52% at R12.68, and WBHO found R1.35 or 1.01% to R135.35.
Media giant Naspers slipped R2.20 to R365.50, and Caxton lost 25 cents, or 1.64% at R15.
