The JSE opened weaker on Thursday on continued profit-taking as well as concerns about the level of the oil price and its impact on inflation and global interest rates, traders said.
By 9.14am, the all share index lost 0,28%, Industrials and financials climbed
0,23% and 0,02% respectively, while the banks index was 0,1% in the red.
Resources eased 0,99%, the gold mining index dipped 1,51% and the platinum mining index was almost unchanged.
The rand was bid at 6,47 per dollar from 6,46 when the JSE closed on Wednesday, while gold was quoted at $439,08 a troy ounce from $443/oz at the JSE’s last close.
“The JSE is lower on profit taking after the very strong gains seen in the market. The oil price is also a concern as well as its impact on inflation and interest rates. The market is really staging a correction,” said Afrifocus Securities portfolio manager Ferdi Heyneke.
“Local companies continue to report very good results. However, some like Standard Bank have painted a cautious outlook. A lot of good news has already been priced into the market and some are saying that most of the good news could already be priced in,” he added.
Leading the downside was oil and chemicals group Sasol on the back of the fall on the oil price from its all-time highs. Resources are also coming under pressure from the decline in the copper price, Heyneke said.
Sasol was last quoted down 6.55 rand or 3.1% at 204.90 due to the lower crude oil price, which was last quoted at US$62.40 a barrel from the all-time high of $66,85 a barrel achieved earlier in the week.
In the resources sector, Anglo American was quoted at R163,60, down 0,7% or 120 cents from the previous close, while BHP Billiton was last quoted at R94,10, down 1,5% or 139 cents from its previous close.
In the gold sector, AngloGold Ashanti lost R6,20 or 2,6% to be last quoted at R229, Gold Fields declined 2,6% or R1,96 to R73 and Harmony Gold was quoted at R54,99, down R1,81 or 3,2%.
Among platinum stocks, Anglo Platinum was quoted at R2,50 or 0,8% at R321 and Impala Platinum was quoted at R616,50, down R7,47 or 1,2%.
In the banking sector, Nedbank was quoted at R85,30, down 22 cents or 0,3% and Standard Bank was quoted at R70,40, down 24 cents or 0,3%.
In the retail sector, Pick ‘n Pay was quoted at R26,10, down 20 cents or 0,8% from its previous close and Woolies was quoted at R11,20, up 10 cents or 0,9% from the stock’s previous finish.
AFX reports that US stocks closed higher on Wednesday, bolstered by strong financial results from Hewlett-Packard, Nordstrom and Applied Materials, while a big drop in crude futures helped offset investor concerns that recent record-
high energy prices may slow economic growth.
The Dow Jones Industrial Average closed up 37,26 points at 10Â 550, the S&P
500 Index gained 0,90 points to 1Â 220 and the Nasdaq Composite Index rose 8,09 points to 2Â 145.
In Tokyo on Thursday, share prices closed higher helped by gains among high-tech stocks and steel makers, as investors were heartened by a retreat in crude oil prices, firmer US stocks and a weaker yen, dealers said.
The blue-chip Nikkei 225 index closed up 34,25 points or 0,3% at 12Â 307,37,
its second gain in four days. – I-Net Bridge