The JSE was heading for its fifth consecutive weaker close on Wednesday, with the bourse dragged to a three-week low by profit-taking and sharply lower international markets, equity traders said.
By 11.46am, the all-share index was down 1,28% and the all-share industrial lost 1,51%. Financials fell 2,18%, resources fell 0,48%, the gold-mining index declined 1%, platinum-mining indices lost 2,44% and the banks index declined 3,26%.
The rand was bid at R6,05 per dollar from R6,01 when the JSE closed on Tuesday, while gold was quoted at $545,65 a troy ounce from $553,06/oz at the JSE’s last close.
“The JSE is lower due to the thumping that the Eastern markets took overnight. Sentiment towards equities is currently negative across the world. Since the start of the year, the JSE has fallen over 1% and that makes it one of the worst-performing markets globally,” a Johannesburg equity broker said.
On Wednesday, the Tokyo Nikkei 225 stock dropped 464,77 points or 2,9% to 15 341,18, after touching a low of 15 059,52. It was the largest single-day drop since May 10 2004, when the index lost 554,12 points.
The benchmark index’s closing level was the lowest since December 16, when it settled at 15 173,07.
A spike in oil prices coupled with earnings disappointment in the financial sector and broker downgrades among tech stocks hit United States markets on Tuesday night. The Dow Jones Industrial Average ended down 63,55 points at 10 896,32, the Nasdaq Composite Index fell 14,35 points to 2 302,69, and the S&P 500 Index dropped 4,68 points to 1 282,93.
The US S&P future was last quoted down 11,70 points or 0,9% at 1 277,90.
“The negative sentiment has also sparked profit-taking. However, the story for retailers, banks and gold equities remains a good one and there is no reason for the JSE to have fallen so much,” the broker said.
Global resources group Anglo American declined R2,70 or 1,3% to R209,30, while BHP Billiton added R1,25 or 1,2% to R103,80.
Petrochemicals group Sasol added 45 cents to R213,95 on the higher oil price. Spot Brent crude oil was last quoted at $65,33 a barrel, up $0,43 from the previous close.
In the gold-mining sector, Gold Fields fell 24 cents to R121,25 and Harmony lost 1,6% or R1,41 to R88,60.
AngloGold Ashanti shed R5,05 or 1,5% to R327, while Western Areas was off 2,2% or 98 cents to R43.
Among platinum stocks, Anglo Platinum shed 3,6% or R16,01 to R429,99 and Impala Platinum was off 1,5% or R14 to R896.
Mittal Steel South Africa was 2,1% or R1,20 softer at R56,80 and Highveld Steel and Vanadium declined 55 cents or 0,6% to R92.
Financial-services group Old Mutual slid 11 cents to R18,46.
Standard Bank was 3,5% or R2,75 softer at R76,25 and Absa was R3,25 in the red at R105,75.
Brewing giant SABMiller was off R2,66 or 2,2% to R115,90, while Bidvest was 2,3% or R2,15 lower at R91,15.
Earlier, SABMiller reported a 1,8% increase in its organic lager volumes for the third quarter of its financial year to the end of December, and 4,5% growth for the nine months to the end of December.
In a trading statement released on Wednesday, SABMiller said volumes had been affected by cool and wet weather during December in South Africa, with South Africa Beverages achieving a marginal increase in beer volumes during the quarter, cycling the 4% growth reported in the year-earlier period.
However, underlying economic performance and consumer confidence in South Africa remained positive, contributing to further mix improvements.
In South Africa, beer volumes for the nine months were up 1,8% on a comparable basis. Soft drink volumes posted a 4% rise in the third quarter and a nine-month increase of 7%, also affected by the December weather. — I-Net Bridge