Johannesburg – The JSE ended slightly firmer on Monday, with light total volumes and low total value traded underscoring nervousness among investors who remain on the sidelines due to heightened global economic uncertainty.

At its close the JSE all share index added 0.21%, with resources gaining 0.32% and gold miners climbing 0.64%. But platinum miners fell 1.10%. Banks rose 0.85% and industrials eked out 0.11% gain, and financials were 0.17% higher.

The rand was bid at 7.26 to the dollar from 7.31 at the JSE’s close on Friday. Gold was quoted at $1 224.80 a troy ounce from $1 212.28/oz at the JSE’s previous close, while platinum was at $1 532.00/oz from $1 520.50/oz before.

Mpho Mojalefa, a trader at BJM Client Services, said low value traded and light volumes indicated that investors were not prepared to commit themselves amid lack of direction.

Mojalefa said foreigners were buying US bonds, spreads were widening in Europe and gold price was higher, underlining uncertainty about the global economic recovery. “The US manufacturing data came below expectations,” he said.

Earlier, Japan reported downbeat economic data that raised concerns about the global economic recovery.

Dow Jones Newswires reported that US stocks fell early on Monday after weaker-than-expected reports on New York-area manufacturing and Japan’s gross domestic product fuelled concerns over slowing global growth.

The Dow Jones Industrial Average shed 55 points in early trading as investors flocked to safer havens.

The price of gold rose to its highest level in six weeks, while the yield on the benchmark 10-year Treasury note fell to its lowest level in more than a year.

- I-Net Bridge

Article from Fin24