The JSE Securities Exchange (JSE) was a red deluge in noon trade on Wednesday as the profit-taking seen over the previous two days continued. A recovery in the rand to R6 per dollar added to the negative picture and decliners outnumbered advancers on the all-share index by about five to one.
By 12.06pm, the all-share index slipped 0,95%. Resources retreated 1,23%, with the gold- and platinum-mining indices slumping 1,76% and 1,57% respectively. Industrials lost 1,09%, financials fell 0,38% and the banks index was 0,48% in the red.
The rand was quoted at R6 per dollar from R6,08 when the JSE closed on Tuesday, while gold was quoted at $424,10 a troy ounce from $421,80/oz at the JSE’s last close.
“There is blood on the screens,” a dealer lamented. “There is really not much green.”
He added that the firmer rand was one of the reasons the market was “coming down”.
“There is definitely a selling air in the market. There is no bullishness. No one wants to be long and the market is going through a down phase.”
He asserted that the bourse had enjoyed a phenomenal run last year and profit-taking is coming in.
The current weakness is likely to be a short-term correction, he asserted.
“One might find that the market will settle down and positive sentiment will start coming in in a couple of weeks. For the moment, there is definitely a negative air to the market.”
On the resources index, BHP Billiton weakened 1,51% or R1,09 to R71,06. Anglo American was off one rand at R140,80.
Petrochemicals group Sasol surrendered 1,16% or R1,45 to R123,05.
Gold Fields tumbled 2,41% or R1,71 to R69,20 and Harmony was 1,77% or 93 cents lower at R51,75.
Impala Platinum shed 1,57% or eight rand to R501 and AngloPlat eased 1,58% or R3,50 to R218,50.
Telecoms stocks were under pressure on the industrial market, with Telkom plunging 3,4% or R3,50 to R99,50. MTN Group dropped 2,43% or R1,01 to R40,49.
Swiss-listed luxury goods group Richemont gave up 1,06% or 20 cents to R18,75 and steel producer Ispat Iscor was 2,18% or R1,30 softer at R58,20.
Hospital group Netcare weakened 3% or 15 cents to R4,85 and retailer Edcon was 2,13% or R5,80 in the red at R266,20.
RMB Holdings led financials lower, falling 1,42% or 29 cents to R20,20. Nedcor surrendered 1,39% or one rand to R71 and investment bank Investec plc slid 1,47% or R2,52 to R168,50.
London-listed financial services group Old Mutual bucked the trend, firming nine cents to R14,39. Sanlam strengthened eight cents to R11,88.
Mining house Kumba soared 3,29% or R1,75 to R54,90 and media group Naspers leaped 1,59% or R1,09 to R69,75.
London-listed IT group Dimension Data jumped five cents to R4,75. — I-Net Bridge