The JSE was weaker just before midday on Monday, having been knocked by basket-selling by futures players. Gold stocks, which were further hit by a lower gold price and poor performance by their ADRs in New York on Friday, were down sharply.
By 11.56am, the all-share index shed 0,84%. Resources retreated 1,23%, the gold-mining index dropped 3,21% and the platinum-mining index lost 1,59%. Industrials eased 0,38%, while the financial and banks indices fell 0,91% and 1,22% respectively.
The rand was bid at R6,41 per dollar from R6,35 when the JSE closed on Friday, while gold was quoted at $465,48 a troy ounce from $471,10/oz at the JSE’s last close.
“The market started weaker and then recovered and wasn’t doing badly, but at about 10.30am it just collapsed in a heap,” a dealer said. “I think a couple of baskets came in and the market was so thin at the time it was just knocked for a six.”
He noted that losses were being seen across the top-40 index.
The dealer added that gold stocks had been down in the United States overnight. The weaker rand had done little to stem their losses and they were also down in dollar terms.
In morning trade, Harmony shares dropped 4% or R2,86 to R68,64. Gold Fields surrendered 2,96% or R2,82 to R92,50 and AngloGold Ashanti slid 2,86% or R7,90 to R268.
London-listed diversified resources group Anglo American weakened 1,57% or R2,99 to R188,01 and BHP Billiton was 1,73% or R1,80 lower at R102.
AngloPlat slumped 2,67% or R10,01 to R364,99 and Impala was off 1,28% or R9,25 to R713,75.
Petrochemicals group Sasol, however, climbed 1,75% or R4,30 to R250,60. It earlier traded at a record high of R258.
Industrials to decline included London-listed brewer SABMiller, which was 70 cents lower at R124,30.
Media group Naspers surrendered 1,9% or R1,98 to R102,01.
Furniture group Steinhoff tumbled 2,74% or 54 cents to R19,16 and retailer Shoprite shed 2,67% or 46 cents to R16,79. Pick ‘n Pay was down 1,23% or 35 cents at R28,10.
Services group Bidvest was down 1,88% or R1,73 at R90,52.
Cement producer PPC, however, picked up 1,37% or four rand to R295 after earlier trading at a record high of R297.
Cellular-network operator MTN Group gained 43 cents to R53,12 and Telkom climbed 56 cents to R126,70.
According to AFX, Turkcell is no longer in the running to build Iran’s second cellphone grid and talks are now going on with MTN, said Vafa Ghafarian, head of the Iranian telecommunication company’s supervisory board.
Banks led financials lower, with FirstRand falling 1,71% or 29 cents to R16,66. Nedbank weakened 2,17% or two rand to R90,20, Absa slipped 1,49% or R1,40 to R92,40 and Standard Bank dipped 40 cents to R69,60. — I-Net Bridge