Although still in the red, the JSE came off its earlier low levels by noon on Monday on the back of a recovery in Dow futures, a local equities trader said.
At 12:02 the JSE all share index had weakened 0.61 percent, with resources easing 0.33 percent and platinum producers down 2.59 percent. However, gold miners added 1.68 percent.
Banks declined 0.75 percent, financials were 0.76 percent lower and industrials gave up 0.83 percent
The rand was bid at 7.86 to the dollar from 7.78 when the JSE closed on Friday. Gold was quoted at $1054.05 a troy ounce from $1039.55 at the JSE's last close, and platinum was at $1334 an ounce, from $1320 at its previous close.
"Eastern markets were down with the Dow this morning. On balance, I think things are still quite positive, although there is scepticism that the market has run too much," the trader said.
"We are seeing profit taking, but there are buyers that come in on these dips. Markets are quite volatile and there are a lot of speculative movements.
"There is a recovery in Dow futures and Europe is holding on on the back of that recovery. It's not looking too bad considering where our prices are. It's not surprising to see some profit taking," he said.
"The volatility day-to-day, because we've had some big moves, is quite big. We are waiting for indicators this week, particularly in the US, we will have to see what they say about going forward.
"The market is looking at all that to find out if there is sustainability in this recovery. We have been through most earnings reports and have been on balance better than expected, but there is still scepticism and uncertainty as to whether market hasn't moved too much," he concluded.
Dow Jones Newswire reported that the FTSE 100 trades kept a toehold in positive territory as traders digest final October UK manufacturing PMI which strongly surprised on the upside at 53.7 against 50.2 expected. It's the best number in the series since January 2004 noted GFT strategist David Morrison. "It is obviously very positive ... Traders take this figure seriously as it is a comprehensive survey of confidence in manufacturing," he said.
He reckons the big question now is whether the steady improvement seen here over the last few months will temper the BOE's decision on quantitative easing later this week. Also, healthy US stock futures and a buoyant mining sector benefiting from higher commodities prices, continue to offer support.
The FTSE 100 had last edged up 0.35 percent.
US stocks are called to open higher in a small relief bounce after the Shanghai Composite index gained 2.7 percent on strong manufacturing data, said David Morrison at GFT.
He called the DJIA up 40 points and the S&P 500 up 5 points. A slightly weaker dollar is also providing support, but any reversal in sentiment which sees rising yields and the dollar start to rally, could lead to a fall in risk assets, he adds. US ISM manufacturing, pending home sales and construction spending are at 15:00 GMT.
Among equity movers on the JSE, Anglo American plc was unchanged at 292 rand and BHP Billiton was off 91 cents to 215 rand.
Petrochemicals group Sasol lost 1.11 rand to 294.69 rand.
Kumba Iron Ore declined 3.20 rand, or 1.36 percent, to 232.80 rand, Highveld Steel weakened 1.50 rand, or 2.31 percent, to 63.50 rand and ArcelorMittal gave up 1.85 rand, or 1.74 percent, to 104.65 rand.
AngloGold Ashanti rose 8.38 rand, or 2.89 percent, to 298.28 rand, Gold Fields collected 70 cents to 101.20 rand and Harmony (HAR) edged up 40 cents to 78.90 rand.
AngloGold Ashanti earlier reported a headline loss to 1,319 cents a share in the three months to end September 2009 from a headline profit of 379 cents a share in the three months making up the June quarter.
Adjusted headline earnings, excluding the cost of these hedge buybacks, reflected a loss of 4.76 billion rand for the quarter, against a profit of 1.36 billion in the June quarter.
Including the cost of the hedge buyback, which was reflected in a lower received gold price, the company reported an adjusted headline loss of 8.07 billion rand against a profit of 1.63 billion in the previous quarter.
Platinum miner Anglo Platinum fell 20.63 rand, or 3.02 percent, to 663.41 rand and Impala Platinum was down 4.88 rand, or 2.80 percent, to 169.42 rand, but Lonmin was up 3.77 rand, or 1.96 percent, to 196.27 rand.
Diversified miner African Rainbow declined 3.94 rand, or 2.58 percent, to 148.96 rand and Exxaro fell 2.10 rand, or 2.37 percent, to 86.40 rand.
Elsewhere on the JSE, brewer SABMiller lost 2.90 rand, or 1.39 percent, to 206.35 rand.
Banker Standard Bank weakened 38 cents to 97.82 rand and FirstRand was off 37 cents, or 2.08 percent, to 17.42 rand.
Financial services group Old Mutual was 20 cents, or 1.45 percent, weaker at 13.55 rand and Sanlam softened 19 cents to 21.36 rand.
Retailer JD Group was off 70 cents, or 1.59 percent, to 43.20 rand, Shoprite was down 75 cents, or 1.17 percent, to 63.25 rand and Steinhoff declined 22 cents, or 1.16 percent, to 18.79 rand.
Liberty International shed 78 cents, or 1.32 percent, to 58.22 rand.
Construction group Aveng gave up 1.45 rand, or 3.47 percent, to 40.30 rand.
Cement manufacturer Pretoria Portland Cement fell 65 cents, or 1.97 percent, to 32.30 rand.
Among telecommunications groups MTN Group declined 1.30 rand, or 1.11 percent, to 116.20 rand, Telkom was down 1.10 rand, or 2.50 percent, to 42.90 rand and Vodacom gave up 81 cents, or 1.49 percent, to 53.59 rand.
