JSE not convinced by G20 talk

Johannesburg - The JSE tracked most global markets weaker in early Friday trade as reassurances by the G20 that they would do everything to avoid a deterioration in the eurozone debt crisis failed to lift market sentiment.

A local trader said Asia was down on the Dow sell off on Thursday.

"We have had a tentative start and we'll see if there's any more selling today in US markets," the trader said.

By 09:18 local time, the JSE All Share [JSE:J203] index had lost 0.37%. Platinum miners dropped 2.54%, while gold stocks gave up 1.92%. Banks shaved off 0.77%, resources fell 0.64%, and financials were down 0.38%. Industrials were 0.13% lower.

The rand was bid at R8.31 to the dollar, from R8.27 at the JSE's close on Thursday. Gold traded at $1 739.59 a troy ounce from $1 727.56 at the JSE's previous close, while platinum was at $1 693.70/oz, from $1 702.70/oz previously.

Dow Jones Newswires reported that Asian shares remain under heavy selling pressure amid growing concerns over the health of the global economy. Risk was given a further lift on reports that the G20 recognised the seriousness of the situation and brought forward its communiqué by one day, says Sue Trinh, a senior currency strategist at RBC Captial Markets.

The S&P/ASX 200 dropped 0.9%, the Kospi dropped 4.4%, the Shanghai Composite lost 1.2% the HSI declined 1.7%. Trinh reckons central banks will continue to stand ready to provide liquidity to banks as required, while the G20 reiterated their belief euro-area authorities will implement steps to increase the power of the EFSF by the time of the next G20 meeting.