The JSE Securities Exchange (JSE) was down by more than 1,5% in noon trade on Thursday after resources plunged by more than 3%.
At noon, the all-share and all-share industrial indices were down 1,61% and 0,65% respectively. Financials dropped by 0,37% and the banks index was 0,67% lower. Resources plunged by 3,57%, while the platinum-mining index fell by 1,09% and the gold-mining index was down 3,06%.
The rand was quoted at R6,08 per dollar, the same as when the JSE closed on Tuesday, while gold was quoted at $432,75 a troy ounce from $435,55/oz at the JSE’s last close, which was Tuesday. Wednesday was Freedom Day, a public holiday.
“We opened lower this morning as resources have taken a big hit. That has led to selling across the board, even though the Dow closed firmer last [Wednesday] night,” said an equities trader.
However, the trader said that the recovery was probably limited. On Monday, Harmony reported poor results, the trader said, and the rest of the gold majors are due to report on Thursday and Friday.
London-listed diversified resources group Anglo American was down by 360 cents to R132,80, while BHP Billiton was 440 cents or 5,66% weaker at R73,30. Petrochemicals group Sasol dropped by 500 cents to R142.
Global resources group BHP Billiton on Thursday reported increases in the production of iron ore, metallurgical coal, manganese ore, manganese alloys, natural gas, aluminium, copper, silver, lead, energy coal and ferrochrome for the nine months to March 2005, compared with the nine months ended March 2004.
During the March quarter, the ramp-up of BHP Billiton’s Western Australia iron-ore operations continued on schedule, with production of 25,8-million tonnes (100% basis) for the quarter.
However, the group reported lower oil and condensate production during the March quarter.
Market players said the group’s shares had tumbled on global economic growth fears as well as a mildly disappointing March 2005 quarter production results.
“BHP Billiton could be down due to disappointing oil production for its March 2005 quarter, despite an ‘okay’ overall quarterly production result,” an analyst said.
“It is hard to say why BHP Billiton’s stock has fallen so hard; it may be because of disappointing oil production. Overall, the March quarter result was okay or mildly disappointing,” another analyst stated.
Among gold shares, AngloGold Ashanti was down R10,69, or 5,15%, to R197,01, while Gold Fields was down only 1,62% or 100 cents to R60,70.
World number four gold-miner Gold Fields on Thursday reported a decline in headline earnings per share to two cents for the March 2005 quarter from nine cents in the December quarter.
Gold Fields reported net earnings per share of 26 cents in the March 2005 quarter from 20 cents in the December 2005 quarter.
Gold Fields produced 1,088-million troy ounces of gold during the March 2005 quarter, up 4% from 1,048-million oz in the December 2004 quarter.
Production from Gold Fields’ South African operations totalled 711 000 oz, down 2% from the previous quarter, while output from the group’s international operations rose by 17% to 377 000 oz.
Among banks, Absa was up 30 cents to R78,50 as the market awaits further developments in the bid by Barclays for a stake in the South African banker. Standard Bank, one of the five most-traded shares of the day, was down 65 cents at R63,15, while FirstRand was down 15 cents to R13,25 and Investec plc was down 175 cents to R181,25.
AFX reported that United States stocks closed solidly higher on Wednesday as a sharp drop in crude-oil prices helped investors weather fresh concerns about a slowdown in the economy.
The Dow Jones Industrial Average ended the day up 47,67 points at 10 198,80, rebounding from a session low of 10 079,45.
The Nasdaq Composite Index rose 2,99 points to 1 930,43, while the S&P 500 Index climbed 4,64 points to 1 156,38.
In Tokyo on Thursday morning, the Nikkei 225 Stock Index finished 3,48 points in the black at 11 008,90. — I-Net Bridge