Stocks remained in the red by noon on Friday with resources and precious metal stocks leading the downside amid continued profit taking.

At 12pm the JSE all share index had given 0.80 percent, with resources losing 1.55 percent, gold miners lost 1.98 percent and platinums shed 2.39 percent.

Banks were flat, down 0.07, financials eased 0.19 percent and industrials weakened 0.33 percent.

The rand was bid at 7.37 to the dollar from 7.34 just before the JSE closed on Thursday. Gold was quoted at $1047.90 a troy ounce from $1049.10/oz just before the JSE's last close, and platinum was at $1339/oz, from $1342/oz at its previous close.

"There is nothing else other than profit taking," a trader said.

"We had a good week and today is the last day and people are now taking money off the table. There are more earnings due out next week. It's probably just the market getting jittery ahead of those and people choosing to sit on the sideline.

"Commodities and resources led the market up and now they are pulling us back," he said.

"For the rest of the day, I see European markets have also turned negative, Dow futures are still holding up well. I don't see any big movements, we will probably remain about 150-250- points for the day, we will probably end negatively," he added.

Dow Jones Newswires reports that the FTSE 100 pared losses, following UK economic data, which revealed UK PPI increased more than expected in September due to rising prices for petroleum products. The PPI data showed no risks of surging inflation in the medium-term, "but the BOE might need to write a letter to the Chancellor to justify the temporary increase in CPI in early 2010, just a few months after finishing its quantitative easing program aimed at reducing deflation risks," said Newedge Group. On the stocks side, mining stocks decline as traders bank profits on the sectors' recent winning streak.

The FTSE 100 was last flat, down 0.10.

US stocks are called to open mildly higher on Friday. Traders note the firmer finish in Asia and further positive earnings news out of the US.

David Morrison at GFT called the DJIA up 24 points and the S&P 500 up three points. He said many indices are hovering around technically significant retracement levels but traders are undecided as to whether to take money off the table or push on. "Not only are they watching out for 3Q earnings, but now exit strategies are being actively discussed by governments and central bankers." US trade balance is at 1230 GMT.

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