The JSE Securities Exchange was awash with red in noon trade on Wednesday on the back of weaker world markets and a stronger rand – even though the currency had come off its best levels seen earlier in the morning. Weakness was most pronounced on the Top 40 index, where decliners outnumbered advancers by more than four to one.
At 11.52am, the all share index was 1% weaker. Resources slid 1,84%, the platinum mining index plunged 2,44% and the gold mining index gave up 0,53%. Industrials and financials fell 0,42% and 0,55% respectively, while the banks index was 0,56% in the red.
After trading at an intraday best level of 6,25 earlier, the rand was quoted at 6,29 per dollar from 6,32 when the JSE closed on Tuesday. Gold was quoted at $422,30 an ounce from $419,45/oz at the JSE’s last close.
“The market is taking strain. It is down in line with world markets and although the rand has been a bit choppy, its strength isn’t helping either,” a dealer said.
He added that resources stocks had been under pressure globally and this weakness was following through on the JSE.
While the higher gold price was paring losses in gold stocks, platinum stocks were not benefiting from strength in platinum.
“The gold quarterlies are starting next week and people are expecting them to be dismal, so we might see some selling coming into gold stocks,” the dealer concluded.
In morning trade, London-listed diversified resources group Anglo American tumbled 2,31% or R3,26 to R137,68. BHP Billiton lost 1,72% or R1,10 to R62,80 and petrochemicals group Sasol slumped 2,96% or R3,66 to R120.
Gold Fields fell 40 cents to R89,70 and Harmony was down 30 cents at R73,20. AngloGold Ashanti shed R2,01 to R233,50.
Impala Platinum dropped 2,18% or R11 to R493 and AngloPlat dived 3,16% or R7,95 to R244.
On the industrial market, Swiss-listed luxury goods group Richemont surrendered 1,27% or 23 cents to R17,85.
Pulp and paper producer Sappi was 2,2% or R1,95 softer at R86,75 and steel producer Ispat Iscor slipped 1,39% or 70 cents to R49,80.
Telkom tumbled R1,85 to R80,70, while cellular operator MTN Group eased 12 cents to R32,79.
Industrials to advance included transport and logistics group Imperial, which ticked up 20 cents to R87 after trading at a best ever R87,35. Services group Bidvest was five cents better at R66,50 after earlier trading at a lifetime high of R67,10.
Furniture retailer JD Group jumped 1,5% or 80 cents to R54 — its strongest since February 2000.
While London-listed financial services group Old Mutual fell 1,07% or 14 cents to R12,92, Standard Bank slipped 1,05% or 55 cents to R51,70 and FirstRand retreated 1,51% or 18 cents to R11,72, Absa added 1,32% or 86 cents to R66,01. It earlier traded at an all-time high of R66,25. – I-Net Bridge