The JSE was sharply weaker in noon trade on Wednesday, knocked by the double whammy of weaker world markets and lower metals prices. Losses were seen across the board and decliners outnumbered advancers on the all share index by around 10 to one.
By 12.06pm, the all share index slipped 1,78%. Resources tumbled 2,4%, the gold mining index slumped 4,74% and the platinum mining index lost 1,64%.
Industrials weakened 1,7%, financials fell 0,89% and the banks index was 1,16%
in the red.
The rand was bid at 6,58 per dollar from 6,56 when the JSE closed on Wednesday, while gold was quoted at $468,40 a troy ounce from $472,50/oz at the JSE’s last close.
“We are taking a nice bath today,” a dealer said. “I think it is a bit of a rearguard action probably triggered by Asia, where there was a sell-off in commodities. The weakness followed through here.”
He continued that concerns about a slow down in commodity demand had spread
to the rest of the market.
World markets were also weaker after Tuesday’s worse-than-expected US producer inflation (PPI) data sparked concerns of more aggressive rate rises, which in addition to impacting on economic growth would also tamper with company margins and profits, the dealer asserted.
US wholesale prices jumped 1,9% in September. It was the biggest rise in US PPI in 31 years.
Leading the JSE’s downside, global resources group BHP Billiton slid 2,67% or R2,49 to R90,81. Anglo American weakened 1,24% or R2,25 to R179,75.
Petrochemicals group Sasol slid 2,82% or R6,20 to R213,30.
Gold miner Harmony dived 6,19% or R4,49 to R68, Gold Fields dropped 5,53% or R5,20 to R88,80 and AngloGold Ashanti shed 2,91% or R8,10 to R270.
AngloPlat was off 1,3% or R4,75 to R360 and Impala was 1,88% or R13,05 lower at R682.
Mittal Steel was 2,25% or R1,15 softer at R49,85.
Swiss-listed luxury goods group Richemont retreated 1,73% or 41 cents to R23,26 and London-listed brewer SABMiller shed 2,14% or R2,51 to R114,60.
Cellular network operator MTN surrendered 3,15% or R1,50 to R46,15 and Telkom gave up 2,02% or R2,40 to R116,60.
Brand management group Barloworld weakened 2,82% or R2,99 to R103,01.
Retailer JD Group dived 4,39% or R3,10 to R67,50 and cement producer PPC plunged 3,48% or R10,10 to R279,90.
Banks led financials lower, with FirstRand retreating 2,77% or 43 cents to R15,07. Absa was off 55 cents at R86,65 and Standard Bank shed 42 cents to R65,70.
Life assurer Sanlam lost 10 cents to R12.
Leading the JSE’s upside, Grayprop gained 1,2% or six cents to R5,06.
Ceramic Tile manufacturer Industries leaped 2,48% or three rand to R124.
Insurance company Glenrand MIB bounced 2,13% or five cents to R2,40. – I-Net Bridge