OWN CORRESPONDENT, Johannesburg | Thursday 11.20am.
LOCAL stocks started lower on Thursday and are expected to stay with losses for the rest of the session after Wall Street’s overnight decline led by a sell-off in US technology shares.
Dealers saw slim volumes going through the market as local institutions took to the sidelines, spooked by continued volatility in US markets. ”Wall Street is always the overriding factor here and the fact that it was unable to withstand the pressure on the Nasdaq it’s taking our market down with it,” said Andile Mazwai, an equity trader at Barnard Jacobs Mellet.
”We also have futures players who are marking the market down…there are no buyers around,” he said.
The Johannesburg bourse’s IT index was last down 3,53% at 974 as sector heavyweight Dimension Data gave up 3,88% to R49,50. The benchmark all share index was last down 1,75% at 7 495 as the Industrial index fell 2% to 8 555 and financial shares lost 1,9% to 9 521.
Media and telecommunications group Johnnic also felt the pinch from the storm buffeting ”new economy” stocks, falling 5,49% to R86. Golds however went against the weaker tone, nudging up 0,4% to 1 014 with dealers saying bullion has potential to benefit from Nasdaq’s overnight fall.– Reuters