The JSE Securities Exchange South Africa (JSE) was bleeding heavily at midday on Monday, hammered by weakness on global markets and lower commodity prices. Losses were incurred across the board and decliners outnumbered advancers on the all-share index by four to one.
By 11.56am, the all-share and all-share industrial indices were down 1,47% and 1,50% respectively. Financials and resources both fell 1,46%. The gold mining index tumbled 2,02%, the platinum mining index slid 1,60% and the banks index plunged 2,07%.
The rand was quoted at R7,12 per dollar from R7,02 when the JSE closed on Friday, while gold was quoted at $373,13 an ounce from $379,10/oz at the JSE’s last close.
“The JSE has taken an almighty knock with the exception of a couple of stocks,” a dealer said.
He explained that the threat of higher United States interest has sent global markets reeling. While the rand was a lot weaker, it was having no real uplifting effect.
“Resources are leading the downside — there is definitely a flight away from resources because of the dollar’s impact on commodity prices,” the dealer commented. He added that worries that higher inflation would lead to higher interest rates — which would in turn result in slower growth and therefore lower demand for commodities — were also weighing.
On the JSE’s downside, London-listed diversified resources group Anglo American lost 1,07% or R1,50 to R139 and BHP Billiton was 1,44% or 81 cents softer at R55,45.
Gold miner Harmony plummeted 4% or R2,99 to R71,75. It earlier traded at a one-year low of R71,55.
AngloGold gave up 2% or R4,45 to R218 and Gold Fields surrendered 1,13% or 80 cents to R70,20.
Impala Platinum plunged 2,47% or R11 to R434 and AngloPlat eased one rand to R233.
Synthetic fuels group Sasol shed 2,65% or R2,80 to R102,80.
Swiss-listed luxury goods group Richemont led industrials’ retreat, slipping 1,72% or 30 cents to R17,10.
Cellular network operator MTN Group dived 3,76% or R1,05 to R26,90, and Telkom tumbled 2,08% or R1,65 to R77,75.
Brand management group Barloworld weakened 2,72% or two rand to R71,50, hospital group Netcare surrendered 2,53% or 12 cents to R4,63 and London-listed IT group Dimension Data dived 4,6% or 20 cents to R4,15.
London-listed beverages group SABMiller dipped 75 cents to R75,25 and furniture group Steinhoff slid 5,52% or 50 cents to R8,55.
Banks were taking punishment, with Nedcor dropping 4,42% or R2,77 to R59,93. FirstRand fell 2,3% or 22 cents to R9,34 and Absa was down 2,11% or 95 cents at R44,05. Standard Bank surrendered 1,51% or 60 cents to R39,20.
Niche banking group Investec plc weakened 2,03% or R2,50 to R120,50 and London-listed financial services group Old Mutual was 1,01% or 12 cents lower at R11,78.
On the JSE’s upside, pulp and paper producer Sappi strengthened 1,05% or 98 cents to R94,50. The group earlier reported headline earnings per share of 10 US cents for the quarter ended March 31 from a loss of 9c in the December quarter and compared with headline earnings per share (Heps) of 25 cents for the March quarter of 2003.
This brought earnings for the six months ended March 31 to 1c, from 47c for the same period a year ago.
“Sappi’s results were better than expected. Analysts were looking for Heps for the quarter of 7c,” the dealer explained.
After being hit hard recently, steel producer Iscor bounced 1,61% or 50 cents to R31,50.
Highveld Steel and Vanadium, which after the close on Friday said that its earnings for the six months ending June 30 are expected to be more than 30% higher than the corresponding period in 2003, rocketed 6,76% or R1,25 to R19,75.
The dealer said that while reasonable volume had gone through, boosted by activity in Anglo, it had been a fairly quiet morning on the local bourse.
“I expected it to be quiet, after the initial sell-off this morning. People are a bit shell-shocked. They are trying to ascertain where to go from here.” — I-Net Bridge