JSE shrugs off weaker global trend as gold counters shine

03 February 2016 - 15:47 By Maarten Mittner

The JSE shrugged off weaker international markets at midday on Wednesday as gold and resources stocks lifted sentiment. The Dow Jones industrial average closed 1.80% lower on Tuesday and Asian markets were weaker on Wednesday.Data from China released earlier in the morning showed the Caixin purchasing managers index (PMI) for the services sector increased to 52.4 in January‚ higher than the December reading of 50.2. This was the highest mark since July 2015. However‚ Chinese markets were weaker in early morning trade as China’s industrial sector is the main driver of growth in the country. Caixin’s manufacturing PMI‚ which was released earlier in the week‚ pointed to negative conditions in the sector.Global markets are awaiting the release of the US’s ADP employment report‚ which is a precursor to the crucial nonfarm payroll data due out on Friday.At 11.50am the all share was up 0.25% at 48‚147.70 points and the blue-chip top 40 added 0.30%.Gold miners led the gainers‚ up 2.48%‚ followed by resources‚ which added 1.13%. Platinum counters were down 1.17% despite a firmer platinum price.The sharp break below 1.90% by US 10-year treasury yields was indicative of a market "desperate" for some form of policy support. "Absent such action‚ additional losses are on the cards‚" Momentum SP Reid analysts said.The FTSE 100 traded 0.45% lower and the Paris CAC 40 shed 0.33%. The DAX was 0.67% lower.Among individual shares on the JSE‚ Anglo American added 2.45% to R59.39 and rival BHP Billiton was up 0.50% at R146.25 after falling almost 5% on Tuesday.Sasol gained 2.51% to R402.32 on the firmer oil price. At midday the volatile Brent crude price rose 2.03% to $33.10 a barrel.Among gold counters‚ AngloGold Ashanti gained 3.42%% to R141.89.Retailer Mr Price fell 1.79% to R147.Naspers was down 1.63% at R1‚896.43.- TMG Digital/BDlive..

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