JSE dragged lower by world markets
Miserable world markets dragged the JSE deeper into the red by noon on Wednesday.
At noon, the all-share index dropped 1,23% and banks retreated 1,98%. Financials retreated 1,57% and industrials were off 1,81%.
The rand was bid at 6,77 to the United States dollar, from 6,71 when the JSE closed on Tuesday, while gold was quoted at $802,70 a troy ounce from $795,25/oz at the JSE’s last close.
“The JSE is down following weaker Eastern markets and weaker European markets,” said a Johannesburg-based equities trader.
He added that volatility levels were still high, but they had come off a bit.
“The US has also been topsy-turvy, and because it has been all over the place, there is still a lot of uncertainty, and markets don’t like this volatility,” he added.
He said that the Hang Seng lost almost 1 200 points, and the United Kingdom was almost 90 points lower, and the JSE got dragged along.
By midday, petrochemical group Sasol pulled back R3,55, or 1%, to R350,45 after being up over R12 and hitting a fresh high earlier of R367,48. On Tuesday, Sasol’s share price rallied up almost 7% to R354 on the back of an upgrade on the recommendation price from neutral to buy made by UBS Wahlberg, as well as Barrons Newspapers’ report that Sasol shares could go higher.
Resource group BHP Billiton eased 50 cents to R213 and Anglo American inched up four cents to R405,58.
Kumba Iron Ore retreated R6,50, or 2,66%, to R237,50.
Platinum miner Anglo Platinum was off R20,63, or 2,16%, to R934,37 and Lonmin lost R8,20, or 1,99%, to R404,20. Aquarius Platinum fell R6,56, or 3,03%, to R210. It said on Wednesday that production has resumed following the voluntary suspension of mining operations due to a fatality reported earlier in the month.
AngloGold Ashanti lifted R2 to R297, but Harmony was down R2,80, or 4,09%, to R65,70.
In the industrial sector, most stocks pulled back. Electronics and electrical equipment company Reunert was R1,07, or 1,39% lower, at R76,05 after it earlier reported a 48% decrease in its diluted headline earnings per share to 268,4 cents for the full year to September 2007 from 520 cents last year.
Brewer SABMiller slipped R3,79, or 2,07%, to R179,60.
Among bank stocks, Nedbank pulled back R3,78, or 2,67%, to R138,02 and ABSA dropped R4,50, or 3,48%, to R124,70.—I-Net Bridge
