The JSE Securities Exchange was sharply weaker just after midday on Monday after Friday’s sell-off on Wall Street sparked an avalanche on global markets. Losses were seen across the board, with only five shares on the all share index managing to post gains.
By 12.18pm, the all share and all share industrial indices slid 2,18% and 2,01% respectively. Resources retreated 2,3%, the gold mining index gave up 2,76% and the platinum mining index surrendered 2,39%. Financials fell 2,25%, while the banks index shed 1,64%.
The rand was quoted at 6,27 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $425,40 a troy ounce from $425,45/oz at the JSE’s last close.
“The JSE is just following the sell off on world markets. It was sparked by Friday’s sharp fall on the Dow and there is no stopping it,” a dealer said.
He added that the activity on the market was all futures related.
“It does test the resolve of the bulls by tempting them to come into the market and protect their stand.”
Microlender Capitec was one of the few bright spots on the market, leaping 3,68% or 50 cents to R14,10.
Property loan stock company Premium climbed 1,58% or eight cents to R5,13.
On the downside, London-listed resources group Anglo American tumbled 2,64% or R3,85 to R141,90. BHP Billiton weakened 2,42% or R1,90 to R76,60.
Gold Fields dropped 4,71% or R3,16 to R63,94.
AngloPlat slipped 2,67% or R6,51 to R237,49 and Impala was 2,29% or R12,02 softer at R513,98.
Kumba was 3,64% or R2,35 lower at R62,15 and Mittal Steel was 4,79% or R2,78 softer at R55,22.
Telkom slipped 2,04% or R2,16 to R103,84 and MTN Group weakened 2,53% or R1,10 to R42,30.
Swiss-listed luxury goods group Richemont surrendered 2,2% or 44 cents to R19,54.
Retailer Edcon dropped 3,36% or R9,01 to R259, Truworths slid 3,48% or 26 cents to R15,25 and Nu Clicks lost 3,44% or 26 cents to R7,30.
On the financial front, Sanlam plunged 4,77% or 59 cents to R11,77 after going ex-dividend of 50 cents per share.
Old Mutual, which went ex-dividend of 41,28 cents per share, dived 5,04% or 77 cents to R14,52.
Nedcor was down 1,97% or R1,46 to R72,54, Standard Bank surrendered 2,05% or R1,27 to R60,74, FirstRand fell 1,44% or 19 cents to R12,96 and Absa was 1,02% or 80 cents in the red at R77,40.
AFX reports that the FTSE 100 slumped in midmorning trade, continuing to suffer the hangover from sharp falls in US and Asian markets, dealers said.
US markets were shaken by worries over corporate earnings following disappointment from major blue chips including IBM and Sun, with weaker-than-
expected economic data also hitting sentiment.
US stocks ended at their lowest for the year on Friday, falling 191,24 points to 10 087,51, posting its biggest one-day decline since March 2003.
The Nasdaq Composite fell 38,56 points to 1 908,15, marking a six-month low. – I-Net Bridge