The JSE Securities Exchange (JSE) was haemorrhaging just before midday on Monday as the strong rand continued to thump heavyweight resources stocks. Negative sentiment spilled through to the rest of the market and decliners outnumbered advancers on the all-share index by about four to one.
By 11.54am, the all-share index was 0,87% weaker. Resources retreated 1,33%, while the gold and platinum mining indices plummeted 2,77% and 3,57% respectively. The financial index fell 0,92%, the banks index lost 1,21% and the all-share industrial index eased 0,36%.
The rand was quoted at R5,93 per dollar from R5,97 when the JSE closed on Friday, while gold was quoted at $406,90 an ounce from $406,68/oz at the JSE’s last close.
On Friday afternoon, the rand broke below R6 per dollar for the first time since October 1999.
”It is a bit of a bun fight here and the market is looking terrible. All the resources stocks are taking a pounding. With a couple of exceptions, the rest of the market is also down and it is all because of the rand,” a dealer said.
He explained that the currency was creating a lot of negative sentiment in the market and overseas players were climbing out of South African stocks. While some buying was coming in from local players, talk that the rand would strengthen further was making them nervous, so they were just nibbling as the market came down.
London-listed diversified resources group Anglo American lost R1,10 to R125 and BHP Billiton weakened 35 cents to R55,30.
Gold Fields plunged 3,78% or R2,22 to R56,50 after earlier touching R56,35 — its lowest since January 2002. Harmony slumped 3,88% or R2,41 to R59,75. Harmony’s intraday low of R59 was its worst since December 2001.
Impala Platinum dived 4,93% or R10,99 to R428,50 and AngloPlat slid 2,61% or R11,50 to R212,01.
On the industrial market, London-listed beverages group SABMiller weakened 32 cents to R79,10 and pulp and paper producer Sappi shed 80 cents to R95,50.
Swiss-listed luxury goods group Richemont dipped three cents to R15,70.
Media group Naspers surrendered 1,72% or 75 cents to R42,75 and cellular network operator MTN Group slipped 25 cents to R26,90.
Steel producer Iscor was 1,66% or 65 cents to R38,55 and retailer Shoprite surrendered 2,07% or 20 cents to R9,45.
FirstRand led financials lower, falling 1,98% or 20 cents to R9,90. Nedcor tumbled 2,74% or R1,60 to R56,90 and Standard Bank slipped 35 cents to R42,55. Absa eased 25 cents to R51,05.
Investment company Remgro was 1,43% or R1,09 in the red at R75,01, while real estate company Liberty International plc was down 55 cents at R87,25.
On the JSE’s upside, services group Bidvest jumped 36 cents to R52,87.
Brand management group Barloworld inched up five cents to R67,15.
Retailer Edcon jumped R1,50 to R163,50. It earlier traded at R164 — its best level since April 1996. — I-Net Bridge