The JSE remained in the red at midday on Tuesday, but was off its worst levels as the relatively strong rand and soft world markets weighed on the local bourse.
Traders said the market showed no reaction to gross domestic product data, released at 11.30am local time, which came in much as expected.
Earlier this morning, gold and platinum prices broke through key levels of $500 and $1 000 an ounce respectively, but both have since retreated from their highs.
By 11.55am, both the all-share and industrial indices were down 0,47%. The resources index was off 0,57% and the gold-mining index was 0,77% weaker, with the platinum-mining index just 0,06% lower. The financial and banking indices were down 0,33% and 0,45% respectively.
The rand was bid at R6,45 per dollar from R6,51 when the JSE closed on Monday, while gold was quoted at $497,95 a troy ounce from $495,65/oz at the JSE’s last close. Platinum was last quoted at $993/oz from $991/oz at the previous close.
AFX reports that the gold price broke through $500/oz in early Asian trading to trade at fresh 18-year highs, with dealers expecting the precious metal to go to $510 by the end of the calendar year.
But they said gold could pull back from these levels, providing investors the opportunity to enter the gold rally at lower levels.
“The strong rand and weaker overseas market have definitely weighed on the JSE this morning. We have seen some profit-taking and I guess this trend will continue as we head into December,” said a local equities dealer.
Anglo was down 215 cents, or 1,04%, to R205,15, but BHP Billiton was up 50 cents to R98,51.
Sasol was 380 cents lower at R230,20 and Kumba was down 210 cents or 2,03%, to R101,25.
Among gold counters, Gold Fields shed 144 cents to R101,66 and Harmony was 83 cents softer at R82,67. Western Areas was up 35 cents, or 1%, to R35,50.
Among platinum counters, Anglo Platinum was off 500 cents, or 1,09%, to R454, but Impala Platinum was up 590 cents at R860,90.
Among industrials, SABMiller was down 60 cents to R118,50 and luxury-goods group Richemont was eight cents weaker at R25,92.
Cellular operator MTN was 10 cents softer at R56,20 and Telkom was 85 cents down at R134,15.
Naspers, which earlier reported fully diluted headline earnings per share of 342 cents for the six months ended September 30 from 221 cents a year ago, was down 26 cents to R106,90.
Chemicals group Omnia, which also reported earlier this morning, was off 50 cents, or 1,3%, to R37,50. It reported a 33% decline in headline earnings per share to 123,8 cents for the six months ended September 30 from 183,6 cents a year ago. On a fully diluted basis, headline earnings per share were 121,4 cents from 180 cents before. An interim dividend of 60 cents per share was declared.
AFX reports that leading shares continued lower in midmorning trade in London, as rising bad-debt fears for Barclays and falling oil prices hit financial and oil issues, dealers said.
At 10.01am, the FTSE 100 was 13,9 points off at 5 463,5, with the broader indices all in the red. The FTSE 250 was down 2,7 points at 8 313,7.
Volumes were moderate as about 508,7-million issues traded hands in 55 385 deals.
United States stocks ended lower on Monday, with the S&P 500 and the Nasdaq Composite indexes snapping a seven-session run of gains as some investors chose to lock in profits after a six-week rally.
The Dow Jones Industrial Average fell 40,90 points to 10 890,72; the benchmark index came off an eight-month high and broke a six-session winning streak. The Nasdaq Composite was down 23,64 points at 2 239,37, while the S&P 500 dropped 10,78 points to 1 257,47. Both indexes posted their biggest one-day drop in a month.
The S&P 500 future was last up two points. — I-Net Bridge