JSE in the red

The JSE has opened lower reflecting the renewed concerns in Europe.

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The JSE opened lower on Tuesday reflecting the renewed concerns in Europe.

A local trader said that European sentiment was down as a result of disappointing German GDP data. Germany was viewed as one of the stronger European economies but the weaker performance that the data points to has created new cause for concern.

By 09:13 local time, the JSE all-share index had dropped 0.68%, with resources down 0.81% and platinum miners shedding 0.28%. However, gold miners gained 1.56%.

Banks lost 0.78%, industrials fell 0.69% and financials gave up 0.55%.

The rand was bid at 7.16 to the dollar, from 7.10 at the JSE's close on Monday. Gold was trading at US$1,771.84 a troy ounce from US$1,740.85 at the JSE's previous close, while platinum was at US$1,818/oz, from US$1,797.50/oz previously.

Dow Jones Newswires reported that most European bourses were likely to open slightly higher on Tuesday, amid investor caution ahead of key data and a meeting between German and French leaders.

“There will probably be some caution ahead of (the) meeting between French President Sarkozy and German Chancellor Merkel where they are expected to discuss the eurozone crisis and possible solutions; hopefully the market isn't setting itself up to be disappointed as it's unlikely we'll see a ground breaking solution,” IG Markets Chief Strategist Ben Potter said.

Eurozone sovereign debt concerns are set to be firmly in focus Tuesday, with Sarkozy scheduled to meet Merkel at 14:00 GMT to discuss the recent crisis. A press conference is scheduled for 18:30 SA time.

“The concern remains that (the meeting)... will not give the markets the solution they crave and as such sentiment will remain susceptible to significant price swings despite (Monday's) gains,” he said.

Wall Street futures were lower on Tuesday, after US stocks advanced on Monday, wiping out last week's losses, as corporate deal making helped send the market to the biggest three-day winning streak since March 2009.

At 09:13 local time, Japan's Nikkei Stock Average was up 0.23%, but Hong Kong's Hang Seng Index fell 0.25%.

On the JSE, Anglo American (AGL) lost 3.65 rand or 1.27% to 283 rand, BHP Billiton (BIL) dropped 2.81 rand or 1.18% to 235.68 rand. Sasol (SOL) was down 5.21 rand to 320 rand.

Among gold shares, AngloGold Ashanti (ANG) gained 4.05 rand or 1.27% to 322 rand and Harmony (HAR) picked up 2.12 rand or 2.25% to 96.51 rand.

Among platinum stocks, Amplats (AMS) was down 2.93 rand to 535.82 rand, while Northam Platinum (NHM) added 35 cents or 1.04% to 34 rand. Impala Platinum (IMP) was 77 cents off at 171.99 rand.

Royal Bafokeng Platinum (RBP) shed 10 cents to 55.50 rand. The independent black-controlled platinum group metals (PGMs) producer reported a 5% dip in first half attributable earnings to 172 million rand compared to 180.9 million rand for the first half of 2010.

Earnings and headline earnings per share were 105 cents for the six months to end June, 20.4% lower than the 132 cents reported for the first half of last year.

Kumba Iron Ore (KIO) lost 7.01 rand or 1.51% to 456.99 rand.

Among industrial stocks, SABMiller (SAB) was 1.49 rand down at 244.25 rand. Barloworld (BAW) shed 90 cents or 1.45% to 61.10 rand.

In construction, Group 5 (GRF) was up 64 cents or 2.26% to 28.96 rand.

Media group Naspers (NPN) was 7 rand or 2.03% lighter at 337 rand. - I-Net Bridge

Source: http://www.iol.co.za/jse-in-the-red-1.1118579

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