The JSE Securities Exchange (JSE) was awash with red at midday on Friday, hit by a recovery in the rand. Volumes were extremely light, however, and were only expected to pick up next week.
At noon, the all-share index was 0,67% weaker. Resources retreated 0,8%, with the gold- and platinum-mining indices slumping 1,94% and 1,36% respectively. Industrials lost 0,53%, financials fell 0,71% and the banks index was 0,4% in the red.
The rand was quoted at R6 per dollar from R6,08 when the JSE closed on Thursday, while gold was quoted at $422,10 a troy ounce from $424,20/oz at the JSE’s last close.
The rand weakened sharply on Thursday on widespread dollar selling. Its intraday worst level of R6,1448 was its weakest since mid-November.
The currency’s depreciation propelled the bourse to a record high.
“The market’s weakness today [Friday] is an issue of the currency again. It was trading at around R6,10 when we opened and is now at R6, and the market has taken a loop,” a dealer said.
He added that there were no other real drivers in the market.
“I think guys overdid it yesterday, both on the rand and the JSE,” the dealer commented.
He said that volumes were dismal and are only likely to pick up next week when institutional investors became active again after the Christmas holidays.
The players that were in the market were remaining cautious ahead of the release of United States non-farm payrolls data at 3.30pm, which could spark a move in the dollar.
The consensus of analysts’ forecasts is for a solid 178 000 improvement in December payrolls, though the range of estimates is wide between 65 000 and 300 000, according to AFX.
On the resources index, London-listed Anglo American lost one rand to R138,70 and BHP Billiton weakened 49 cents to R67,50.
Gold Fields slid 2,39% or R1,84 to R75,16 and Harmony tumbled 2,04% or R1,16 to R55,59. AngloGold Ashanti surrendered 1,68% or R3,50 to R205.
Impala Platinum was down 1,38% or R7,10 to R508,90 and AngloPlat weakened 1,72% or R3,99 to R228.
Pulp and paper producer Sappi shed 1,47% or R1,26 to R84,49 and steel producer Ispat Iscor was 1% or 65 cents softer at R64,25.
Brand management group Barloworld was off R1,06 to R105,79 and London-listed brewer SABMiller slipped 72 cents to R95,50.
Transport and logistics group Imperial lost 1,61% or R1,70 to R104.
Financial services group Sanlam shed 1,6% or 20 cents to R12,30 and Old Mutual plc was 14 cents lower at R14,68.
Standard Bank was down 45 cents at R61,15, Nedcor surrendered 66 cents to R74,84 and FirstRand fell six cents to R13,14. Absa, however, added 41 cents to R72,10.
Swiss-listed luxury goods group Richemont rose six cents to R19,41. — I-Net Bridge