The JSE remained on the back foot during midday trading, tracking negative global investor sentiment.

The JSE remained on the back foot during midday trading on Friday, tracking negative global investor sentiment.

But gold shares bucked the trend, rallying on the back of the firmer spot price of the yellow metal, and rand weakness.

At 12:02 local time, the JSE all-share index was down 1.13% to 33,158.53 points, with platinum sector losing 1.68%, resources shedding 0.71%, while gold counters jumped 3.60%.

Financials were down 1.49%, banking stocks fell 2.17% and industrials were off 1.28%.

The rand weakened to 8.35 to the US dollar, from 8.33 at the JSE's close on Thursday, while gold was quoted at US$1,592.17 a troy ounce from US$1,571.50/oz at the JSE's previous close and platinum was at $1,462.50/oz, from $1,455.20/oz at the previous session.

“There is a lot of angst around, not just in eurozone. The US is still struggling with structural unemployment problems. There are also economic growth concerns in China. With all these combined, market players worry that these could potentially derail global economic growth,” said Graeme Körner, portfolio manager at Körner Perspective.

European stocks were lower as investors opted for safety over risk after Moody's downgraded several Spanish banks and Fitch cut its credit rating on Greece, Dow Jones Newswires reported.

The UK's FTSE 100 index was down 1.19% to 5,274.86 points at about noon local time.

Asian markets also fell heavily, with Japan, Australia and Hong Kong all hitting four-month lows, as poor US manufacturing data added to rising worries over Europe.

Japan's Nikkei ended 2.99% in the red while Hong Kong's Hang Seng Index closed 1.30% lower.

However, US stock futures gained ground as investors looked ahead to Facebook Inc's initial public offering (IPO), although worries about Europe threatened to cast a cloud over the much-anticipated trading debut of the social network site.

Facebook late on Thursday priced its IPO at $38 a share, coming in at the high end of its estimated range with a debut valued at $16 billion.

The size of the deal makes Facebook the third-largest IPO ever in the US market and the biggest debut since Visa's $17.8 billion offering in March 2008, according to Renaissance Capital. The offering marks the largest tech IPO on record.

On the JSE, Anglo American (AGL) was down R4.92, or 1.81%, to R266.53, BHP Billiton (BIL) fell R2.33, or 1.02%, to R225.47 and Sasol (SOL) dropped R3.56, or 1%, to R354.09.

AngloGold Ashanti (ANG) rallied R13, or 4.83%, to R282, Harmony Gold Mining (HAR) was up R1.60, or 2.11%, to R77.29 and Gold Fields (GFI) garnered R2.66, or 2.64%, to R103.34.

Anglo American Platinum (AMS) dipped R9.50, or 1.91%, to R487.50, while Lonmin (LON) dropped R2.53, or 2.43%, to R101.78.

Among other miners, African Rainbow Minerals (ARI) was off R5.03, or 2.88%, to R169.75

Among telecoms, MTN (MTN) fell R1.72, or 1.28%, to R132.73 and Vodacom (VOD) declined R1.50, or 1.46%, to R101.

In industrials, Barloworld (BAW) fell R1.40, or 1.69%, to R81.50.

Nedbank (NED) lost R4.54 or 2.65%, to R166.46 and FirstRand (FSR) was down 90 cents, or 3.46%, to R25.10. - I-Net Bridge

The JSE ended the session on a weaker note, tracking the negative global investor sentiment.

The JSE ended Friday's session on a weaker note, tracking the negative global investor sentiment, in what has been a volatile week in the equity space due in the main to the eurozone debt crisis.

But gold shares bucked the trend on Friday, rallying on the back of the firmer spot price of the yellow metal, and the week's rand weakness.

At 17:00 local time, the JSE all-share index was down 1.16% to 33,148.39 points, with platinum sector losing 0.91%, resources shedding 0.20%, while gold counters jumped 4.38%.

Financials were down 1.66%, banking stocks fell 2.44% and industrials easing 1.58%.

The rand recovered to 8.30 to the US dollar, from 8.33 at the JSE's close on Thursday, while gold firmed and was quoted at US$1,595.39 a troy ounce from US$1,571.50/oz at the JSE's previous close and platinum was at US$1,463.20/oz, from US$1,455.20/oz at the previous session.

“Markets continued to sell off due to eurozone concerns today in the absence of the any market moving economic data, although gold shares bounced on some bargain hunting,” said Nick Kunze, head of dealing at BJM Private Clients Services.

US stocks idled near unchanged levels on Friday as optimism ahead of the much-anticipated trading debut of Facebook shares helped distract investors from increasing concerns over contagion risk from Greece, according to Dow Jones Newswires.

Facebook's initial public offering priced at $38 a share, the high end of its recently increased expected range. That gives the social media company a market value of $104 billion, making it the biggest-ever valuation by an American company at the time of its IPO.

European stocks pared earlier losses but remained mostly lower, after Moody's Investors Service downgraded a number of Spanish banks and Fitch Ratings cut Greece's credit rating further into junk status.

On the JSE, Anglo American (AGL) was down R3.11, or 1.15%, to R268.34, BHP Billiton (BIL) fell R1.03 to R226.77 and Sasol (SOL) dropped R5.38, or 1.50%, to R352.27.

AngloGold Ashanti (ANG) rallied R16.93, or 6.29%, to R285.93, Harmony Gold Mining (HAR) was up R1.37, or 1.81%, to R77.06 and Gold Fields (GFI) garnered R2.97, or 2.95%, to R103.65.

Northam Platinum (NHM) slid R1.20, or 4.11%, to R28, while Lonmin (LON) eased R1.61, or 1.54%, to R102.70.

Among other miners, Kumba Iron Ore was off R10.50, or 2.03%, to R507.50 and African Rainbow Minerals (ARI) shed R6.98, or 3.99%, to R167.80.

In industrials, SAB (SAB) lost R9.30, or 2.84%, to R317.84 and Richemont (CFR) fell 69 cents, or 1.37%, to R49.70.

Nedbank (NED) lost R5.50 or 3.22%, to R165.50 and FirstRand (FSR) was down R1, or 3.85%, to R25. - I-Net Bridge

The volatile rand was firmer in trade ahead of the weekend on the back of improved sentiment about the European crisis.

The volatile rand was firmer in Friday afternoon trade ahead of the weekend on the back of improved sentiment about the European crisis, which has been impacting on emerging markets throughout the week.

The rand recovered from its early morning worst level in midday trade and continued to recover through the day.

“The rand strengthened ahead of the weekend mainly on improved prospects in Europe. Some fears on the euro crisis have been allayed and we have seen some profit taking,” a local trader said.

At 16:05 local time the rand was bid at R8.3154 to the dollar from today's worst level of R8.4457, Thursday's close of R8.3606, Wednesday's close of R8.3155, Tuesday's close of 8.3275 and Monday's close of R8.1983. Just a week ago the rand was below R8 per dollar.

It was bid at R10.5796 to the euro from R10.6089 before, and at R13.1519 against sterling from R13.1975 previously.

The euro was bid at US$1.2721 from Thursday's close of $1.2694.

Dow Jones Newswires reported that currency markets pulled back from the precipice in European hours on Friday, having looked ready to go over the top in early trade as the euro and Australian dollar sank against safer bets like the yen and dollar.

That came amid a global slump in shares after poor US data added to the economic gloom and Moody's Investors Service downgraded 16 Spanish banks, piling the pressure on Spain after a day of bank-run denials and racketing up the eurozone crisis still further in the wake of Greece's political deadlock.

The euro hit a four-month low of $1.2641 against the dollar, taking its losses for the week to 4.5%, but then steadied. - I-Net Bridge

The rand recovered from its early morning worst level in midday trade on the back of exporter demand.

The rand recovered from its early morning worst level in midday trade on Friday on the back of exporter demand.

“We have seen a plethora of orders from exporters and foreigners, which is why we are about eight cents better than our worst level,” a local trader said.

At 11:42 local time the rand was bid at R8.3577 to the dollar from today's worst level of R8.4457, Thursday's close of R8.3606, Wednesday's close of R8.3155, Tuesday's close of 8.3275 and Monday's close of R8.1983. Just a week ago the rand was below R8 per dollar.

It was bid at R10.6094 to the euro from R10.6089 before, and at R13.2033 against sterling from R13.1975 previously.

The euro was bid at US$1.2694 from Thursday's close of $1.2694 and Wednesday's close of $1.2721.

“The outlook remains cloudy and uncertain as when Greece exits the euro, the fear is that Spain, Portugal and Italy may be next,” another trader said.

Dow Jones Newswires reported that the cost of insuring Spanish sovereign debt against default hit yet another record high on Friday, rising 12 basis points from Thursday's close to 562 basis points as its banking system is under severe stress, undermining investors' confidence and threatening to once again push the country's borrowing cost to unsustainable levels.

Late on Thursday, Moody's Investors Service downgraded 16 Spanish banks, adding to the gloom surrounding the embattled country's banking system.

The Spanish government had to intervene on Thursday during the day and deny reports of a bank run at Bankia, the domestic lender nationalised last week.

The cost of overhauling Spanish banks, some of them in great difficulty after lending excessively during a real-estate boom before the financial crisis hit, is of concern to investors and threatens to prove too much for the country, already battling high public deficit levels amidst a recession and high unemployment.

Nervous investors are pushing the credit default swaps (CDS) levels of other European countries to wider levels, as the consequences of a possible Greek exit from the eurozone are not quantified yet but are feared to be highly disruptive.

Credit default swaps are derivatives that function like an insurance contract for debt. If a borrower defaults, sellers compensate buyers. - I-Net Bridge

The JSE slid during its opening session, in line with main global stock markets, amid the heightened risk aversion stemming from the eurozone situation.

The JSE slid during its opening session on Friday, in line with main global stock markets, amid the heightened risk aversion stemming from the eurozone situation.

At 09:20 local time, the JSE all-share index was down 1.08% to 33,177.36 points, which extends the benchmark's losses to 3.46% since the start of this month.

The platinum sector tumbled 2.05%, resources lost 1.43%, while gold counters edged up 0.24%.

Financials were down 1.29%, banking stocks fell 1.88% and industrials shed 0.24%.

The rand also slid to 8.40 to the US dollar, from 8.33 at the JSE's close on Thursday, while gold was quoted at US$1,573.07 a troy ounce from US$1,571.50/oz at the JSE's previous close and platinum was at $1,453.70/oz, from US$1,455.20/oz at the previous session.

“The downgrades of some of the Spanish banks and Greek debt exacerbated the already fragile environment. The rand/dollar weakness mirrors the risk-off scenario with investors selling local equities and bonds,” said Devin Shutte, market watcher at stockbrokerage, Newstrading.

European stocks also opened weaker, following Moody's downgrade of several Spanish banks and Fitch's downgrade of Greece's credit rating, Dow Jones Newswires reported.

The London's FTSE 100 index had lost 0.89% at about 09:05 local time.

Fitch Ratings downgraded Greece's credit rating by two notches further into junk territory, pointing to increased risk that the country may exit the eurozone.

Adding to the gloom, Moody's Investors Service downgraded 16 Spanish banks and Santander UK, a UK-domiciled subsidiary of Banco Santander, pointing to mounting loan losses and the recession.

In Asia, markets fell heavily on Friday, with Japan and Hong Kong all hitting four-month lows.

The Nikkei fell 2.99% and Hang Seng Index was down 1.86%.

On the JSE, Anglo American (AGL) fell R5.05, or R1.86%, to R266.40, BHP Billiton (BIL) shed R3.92, or 1.72%, to R223.88 and Sasol (SOL) shed R4.17, or R1.17, to R353.48.

AngloGold Ashanti (ANG) was up R3.03, or 1.13%, to R272.03, but Harmony Gold Mining (HAR) slipped 30 cents to R75.39 and Gold Fields (GFI) lost 68 cents to R100.

Impala Platinum (IMP) dropped R3.40, or 2.40%, to R138.30, Lonmin (LON) lost R2.16, or 2.07%, to R102.15, taking the losses in the stock to 21.81% since start of the month. A local trader said this was probably due to the company's relatively poor recent first-half results and the drop in world platinum demand.

Among other miners, African Rainbow Minerals (ARI) was off R3.43, or 1.96%, to R171.35 and Assore (ASR) lost R6 or 2.23%, to 263.

In industrials, Barloworld (BAW) fell R1.40, or 1.69%, to R81.50.

Among banks and financials, Nedbank (NED) lost R3.60 or 2.11%, to R167.40 and FirstRand (FSR) was down 65 cents, or 2.50%, to R25.35.

Sovereign Foods (SOV) was unchanged at R4.80. The poultry producer reported unchanged diluted headline earnings per share of 57.9 cents for the year ended February 2012. Owing to the dilutionary effect of the rights offer which was concluded in March 2011, HEPS decreased marginally to 57.9 cents from 58.1 cents a year ago.

Holdsport (HSP) was also unchanged at R44.50. The clothing retailer reported a strong set of maiden results for the year ended February 2012 with core headline earnings per share rising 22.5% to 387.4 cents.

Liberty Holdings (LBH) was down 65 cents to R87.70. Releasing its operational update for the three months ended March 2012 on Friday, Liberty said returns on its shareholder investment portfolio were supported by the positive investment markets. Long-term insurance indexed new business (excluding premium escalations) was up 22% to R1.283 billion for the period. - I-Net Bridge

The JSE extended its losses at noon, dragged down by a selloff in general mining shares, against the negative global investor sentiment backdrop.

The JSE extended its losses at noon on Thursday, dragged down by a selloff in general mining shares, against the negative global investor sentiment backdrop.

The JSE had a 30 minute interruption this morning due to international connectivity issues, which have since been resolved.

At 12:06 local time, the JSE all-share index was down 1.08% to 33,431.24 points, with resources dropping 1.88%, which extends the sector's losses to 6.97% since the beginning of May.

Gold miners lost 1.22%, while platinum counters edged up 0.34%.

Financials were down 0.60%, banking stocks fell 0.21% and industrials shed 0.77%.

The rand was trading at 8.31 to the US dollar, from 8.29 at the JSE's close on Wednesday, while gold was quoted at US$1,547.90 a troy ounce from $1,546.53/oz at the JSE's previous close and platinum was at $1,443.20/oz, from $1,438.70/oz at the previous session.

“The market continues to be extremely volatile. The resource counters continue to be the main drag on the overall index due to uncertainty in Europe and the slowdown in the Chinese economic growth,” said Martin Strauss, market analyst at PSG Konsult.

Franklin Templeton Investments said in a research note that to the extent that the recent downturn in China was due to a slowdown in external demand, signs of improvement in the US and continued robustness in other parts of Asia should help support economic growth.

In addition, while the rate of consumer inflation in March was higher than expected, upstream inflationary pressure from producer prices appears limited, so there may be room for some easing of monetary and fiscal policy.

European stocks were lower on Thursday, as worries about contagion from Greece to other “peripheral” nations continued to weigh on investors' minds, while the results of Spain's latest bond auction saw borrowing costs rise, Dow Jones Newswires reported.

The UK's FTSE 100 index was down 0.71% to 5,366.74 points just before noon local time.

Spain sold EUR2.494 billion in bonds, which was at the upper end of the EUR1.5 billion to EUR2.5 billion range expected.

Asian markets ended mixed, stabilising after heavy selling on Wednesday, as worries subsided over Europe with Greece preparing to hold fresh elections in June.

Japan's Nikkei rose 0.90% while China Shanghai SE Composite finished up 1.4%.

On the JSE, Anglo American (AGL) was down R7.27, or 2.61%, to R270.85, BHP Billiton (BIL) fell R5.81, or 2.49%, to R227.31 and Sasol (SOL) dropped R5.05, or 1.40%, to R356.45.

AngloGold Ashanti (ANG) slipped R3, or 1.14%, to R260, Harmony Gold Mining (HAR) was down R1, or 1.35%, to R72.83 and Gold Fields (GFI) lost R1.34, or 1.36%, to R97.46. The gold producer earlier reported attributable group production of 827,000 gold equivalent ounces in the quarter ended March, similar to the corresponding quarter's 830,000 gold equivalent ounces a year ago, but 6% lower than the December 2011 quarter's 883,000oz.

Anglo American Platinum (AMS) bucked the trend, lifting R5.13, or 1.04%, to R497.13, while Lonmin (LON) dropped R4.36, or 4.07% to R102.86.

Among other miners, Kumba Iron Ore was off R14.65, or 2.75%, to R517.89.

Among telecoms, MTN (MTN) fell R2.85, or 2.09%, to R133.77 and Vodacom (VOD) declined R1.95, or 1.83%, to R104.70.

Among financials and banks, Absa (ASA) lost R1.79 or 1.16%, to R153.11 and Investec plc (INP, INL) was down 80 cents, or 1.84%, to R42.75. The international specialist banker and asset manager saw adjusted earnings per share decline by 26.4% from 43.2 pence to 31.8 pence for the year ended March. Headline earnings per share for the 12-month period were down 28.9% to 26.8 pence from 37.7 pence a year ago.

Pretoria Portland Cement (PPC) was up 23 cents to R29.23. The company reported an 8% rise in headline earnings per share to 77.6 cents for the six months ended March 2012 from 7.8 cents a year ago. - I-Net Bridge

The rand was steady around previous closing levels in midday trade.

The rand was steady around previous closing levels in midday trade on Thursday, but off its morning best level as it tracked the euro, which fell below $1.2700 to its lowest for the day.

The euro continued to be weighed by the Greek crisis.

At 12:15 local time the rand was bid at R8.3278 to the dollar, after it touched an intraday best level of around 8.25 and compared with Wednesday's close of R8.3155, Tuesday's close of 8.3275 and Monday's close of R8.1983. Just a week ago the rand was below R8 per dollar.

It was bid at R10.5834 to the euro from R10.5775 before, and at R13.2214 against sterling from R13.2299 previously.

The euro was bid at US$1.2697 from today's best level of $1.2750 and Wednesday's close of $1.2721 and Wednesday's worst level of $1.2680.

Standard Bank said earlier that a lack of critical data flow today implied that the rand was likely to consolidate after its fairly dramatic moves over the last few sessions.

“We maintain, however, that the bias towards a weaker rand remains,” Standard Bank said.

In the latest developments from Europe, Dow Jones Newswires reports Greece's new caretaker government was sworn in Thursday at a ceremony at the presidential palace, putting in place a technocratic cabinet that will lead the country to fresh polls in mid-June.

The swearing-in follows the appointment of senior judge Panagiotis Pikrammenos as prime minister a day earlier after Greek party leaders failed to agree on a compromise candidate in the wake of inconclusive elections earlier this month that resulted in a hung parliament.

George Zannias, who has served as chief economist at the finance ministry since the start of the Greek crisis, was sworn in as finance minister, bringing a welcome element of continuity to the country's economic management.

In his previous position, Zannias was deeply involved in negotiations for Greece's two separate bailouts, including a EUR130 billion package agreed in March, as well as related debt restructuring.

In a separate ceremony Thursday, Greece's new parliament--made up of the seven parties that were elected to the legislature in inconclusive May 6 polls--was also sworn in. But the procedure was a formality: the new parliament is expected to be dissolved again Saturday and the date of new elections formally announced.

Those elections are shaping up as a game of chicken over the country's membership in the euro.

“The battle that begins the day after tomorrow, for the new elections, is not about any single party or its electoral influence,” Antonis Samaras said in a speech to his party's lawmakers Thursday. “It's about whether Greece will remain in Europe, a Europe which is itself changing. Or if Greece will be forced to leave Europe, losing much and risking even more.”

Meanwhile, European stocks fell as worries about contagion from Greece to other “peripheral” nations continued to weigh on investors' minds, while the results of Spain's latest bond auction saw borrowing costs rise, Dow Jones reported.

It seemed investors just couldn't shake off concerns about Greece. “The markets are looking at Greece through the prism of contagion to Spain and Italy,” said Nicholas Spiro, managing director at Spiro Sovereign Strategy. “The Greek crisis is placing huge strain on peripheral euro-zone bonds and European bank shares. Spain is on the sharp end of this pressure. The Spanish government itself can do very little to shore up confidence in the near term. Unless there is a bold and decisive response on the part of the euro zone, sentiment towards Spain will deteriorate further. This is a very slippery slope right now.” - I-Net Bridge

The JSE dipped, with resources leading the downside, as volatility in equities continued.

The JSE dipped at the start of trading on Thursday, with resources leading the downside, as volatility in equities continued.

At 09:20 local time, the JSE all-share index was down 0.75% to 33,542.73 points, with resources dropping 1.14%, gold miners losing 0.43%, while platinum counters edged up 0.19%.

Financials were down 0.39%, banking stocks fell 0.48% and industrials shed 0.67%.

The rand was trading at 8.29 to the US dollar, unchanged from the JSE's close on Wednesday, while gold was quoted at US$1,547.35 a troy ounce from $1,546.53/oz at the JSE's previous close and platinum was at $1,442.20/oz, from $1,438.70/oz at the previous session.

“Until we get some clarity on Greece, I don't think there will much else on go. If you look at the trend since the start of this year, our market has been pretty much trading in a narrow band,” said Kobus Nell, portfolio manager at Stanlib.

In Asia, markets were mixed on Thursday after Wednesday's heavy selling, with investors digesting Japanese data showing the economy grew faster than forecast last quarter, Dow Jones Newswires reported.

The London's FTSE 100 index had lost 0.21% at about 09:05 local time.

Japan's Nikkei lifted 0.86% and Hong Kong's Hang Seng Index was flat.

European stocks opened mixed, as investors paused to take stock of recent events.

Still, markets will remain driven by political events and news from European Union/European Central Bank leaders, said Newedge.

With US data showing some signs of improvement of late, the release of initial jobless claims will be in focus.

On the JSE, Anglo American (AGL) fell R4.87, or R1.75%, to R273.25, BHP Billiton (BIL) shed R3.56, or 1.53%, to R229.56 and Sasol (SOL) slipped R2.77 to R358.73.

AngloGold Ashanti (ANG) was down 58 cents to R262.42, Harmony Gold Mining (HAR) slipped 51 cents to R73.32 and Gold Fields (GFI) lost 66 cents to R98.14. The gold producer reported attributable group production of 827,000 gold equivalent ounces in the quarter ended March, similar to the corresponding quarter's 830,000 gold equivalent ounces a year ago, but 6% lower than the December 2011 quarter's 883,000oz.

Anglo American Platinum (AMS) bucked the trend, lifting R5.99, or 1.22%, to R497.99, while Lonmin (LON) dropped R2.72, or 2.54% to R104.50.

Among other miners, Kumba Iron Ore was off R10.70, or 2.01%, to R521.84 and Assore (ASR) lost R6.09 or 2.26%, to 263.90.

In industrials, SAB (SAB) fell R4.87, or 1.49%, to R322.85 and Richemont (CFR) slipped 37 cents to 50.25.

Investec plc (INP, INL) was down 78 cents, or 1.79%, to R42.77. The international specialist banker and asset manager saw adjusted earnings per share decline by 26.4% from 43.2 pence to 31.8 pence for the year ended March. Headline earnings per share for the 12-month period were down 28.9% to 26.8 pence from 37.7 pence a year ago.

Investec Property Fund (IPF) was unchanged at R11.80, after the company declared a final distribution of 49.29 cents per linked unit in the year ended March. This brings the total distribution for the year to 93.02 cents per linked unit, taking into account the initial distribution of 43.73 cents.

Tsogo Sun (TSH) was unchanged at R17.80. The hotel and gaming group reported a 36% increase in adjusted earnings to R1.3 billion for the year ended March. Adjusted headline earnings per share for the year were up 12% to 121.5 cents. The group declared a final gross cash dividend of 40 cents per share in respect of the company's year-end, bringing the total dividend for the year to 60 cents, an increase of 20% on the dividend declared in the previous year. - I-Net Bridge

The volatile rand was marginally firmer in afternoon trade after Greek fears were allayed.

The volatile rand was marginally firmer in afternoon trade after Greek fears were allayed as a result of a pledge made by the European Central Bank to support the country ahead of the new June poll.

The discussions over the formation of a Greek government broke down after only nine days and the consequent risk-off sentiment weighed heavily on the rand and emerging market currencies, until the ECB rescue announcement.

“The rand strengthened on news that the ECB will support Greece. It remains vulnerable, but some of the fears have been allayed ahead of the June 17 elections in that country,” a local trader said.

At 15:30 local time the rand was bid at R8.3090 to the dollar from Tuesday's close of 8.3275 and Monday's close of R8.1983. Just a week ago the rand was below R8 per dollar. It was bid at R10.5841 to the euro from R10.5955 before, and at R13.2483 against sterling from R13.3041 previously.

The euro was bid at US$1.2738 from Tuesday's close of $1.2732 and Monday's close of $1.2828.

Dow Jones Newswires reported the European Central Bank wanted Greece to remain in the euro zone, while the decision for Greece's possible exit from the currency union was not an issue that the ECB would need to decide on, according to ECB President Mario Draghi on Wednesday.

“While the ECB will continue to comply with the mandate of keeping price stability over the medium term in line with treaty provisions and preserving the integrity of our balance sheet, I want to state that our strong preference is that Greece will continue to stay in the euro area,” Draghi said at a conference in honour of executive board member Jose Gonzalez-Paramo, whose eight-year term will expire at the end of May.

As recent parliamentary elections have been inconclusive in Greece, worries have been mounting that it may leave the euro zone. “Since the treaty doesn't foresee anything on exit, this is not a matter for the ECB to decide,” Draghi said. - I-Net Bridge

South African maize futures ended higher, due to a weaker local currency.

South African maize futures ended higher on Wednesday, due to a weaker local currency.

The rand has remained under pressure as the growing prospect of a Greek exit from the eurozone sent investors scurrying out of the 17-member currency.

The near-dated May 2012 white maize contract gained R30 to R2,085 per ton, July 2012 white maize lifted R29 to R2,079 per ton, and September 2012 white maize rose R34 to R2,107 per ton, according to preliminary I-Net Bridge data.

The near-dated May 2012 yellow maize contract edged up R39 to R2,018 per ton, and the July 2012 yellow maize contract inched up R30 to R2,034 per ton and the September 2012 yellow maize contract gained R35 to R2,065 per ton.

The May wheat contract edged up R27.20 to R2,754.20 per ton, July wheat was up R27 to R2,800 per ton, while the September 2012 wheat contract rose R31 to R2,857 per ton.

“We saw some big moves today. The weaker rand/US dollar exchange rate lent support to the market, the Greece situation being the main culprit - all this obviously positive for local prices,” a trader said.

Meanwhile, Dow Jones Newswires said that US wheat futures rose 2% on Tuesday, boosted by concerns about dry weather in overseas wheat-producing regions and a less optimistic government assessment of the US winter-wheat crop.

Tuesday's rally came after wheat prices mostly fell over the past two months.

A rise in corn futures lifted wheat prices as well. Many analysts say corn is currently the key price driver for wheat, as the two crops compete in the animal feed market.

“If you can figure out where corn is going to go, you can figure out where wheat is going to go,” said Sid Love, an analyst for Kropf & Love Consulting, an agricultural advisory firm in Kansas.

Corn futures rose as traders focused on drier weather conditions in the US creating a need for rain to support the crop.

While analysts expect a large US corn crop this year, the risk of adverse weather sometime before the harvest this fall helped boost prices, traders said. - I-Net Bridge