Banking counters led the downside as the JSE edged lower by noon on Thursday, moving in line with frail European markets as market participants took profits after the big moves seen recently.

By 12.04pm, the JSE all share index had edged down 0.21 percent, with resources up 0.48 percent. Platinum miners added 1.54 percent and gold counters gained 1.39 percent.

Banks lost 3.33 percent, financials were down 1.83 percent and industrials eased 0.54 percent.

The rand was last bid at 9.44 to the dollar from 9.40 when the JSE closed on Wednesday. Gold was quoted at $936.70/oz a troy ounce from $929.47/oz at the JSE's last close, and platinum was at $1145/oz from its previous close of $1120.50/oz.

"We have edged lower in line with slightly weaker European markets," an equities trader said.

"It's a bit of a mixed market. There is profit taking, but we are seeing some buying as well. It seems as though it's the metals that are running.

"Banks have seen some big moves and it's not surprising that there is some profit taking there. The rand has also remained strong. Dow futures are up, so there is still a possibility that we might still hold up and see a bit more buying," he said.

Dow Jones Newswires reports the FTSE 100 giving up early gains and drifting lower post UK retail sales which fell 1.9 percent in February, after an upwardly revised 0.8 percent increase in January. In annual terms, retail sales rose 0.4 percent after an upwardly revised 3.8 percent gain in January. The data is much worse than expected and coming on the back of Wednesday's poor gilt auction, this should weigh on the UK market, said GFT's strategist, David Morrison. "If we now start to see a divergence with worsening UK data and improving US figures, Gordon Brown will be under further pressure ahead of G20," he added.

The FTSE had eased 0.10 percent.

US stocks are expected to open up, said David Morrison at GFT, continuing Wall Street's late buying on Wednesday and supported by better-than-expected economic data.

He called the DJIA to open up 40 points and the S&P 500 up five points.

I-Net Bridge