The JSE was weaker just before noon on Wednesday with weakness on world markets encouraging profit-taking. A pullback in metals prices, several of which reached record highs on Tuesday, exacerbated the negativity.
By 11.57am, the all-share index shed 1,07%. Resources retreated 2,02%, the gold-mining index tumbled 2,64% and the platinum-mining index eased 0,28%. The financial and banks indices fell 1,12% and 0,9% respectively, while industrials were flat.
The rand was bid at 6,11 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $597,25 a troy ounce from $600,15/oz at the JSE’s last close.
Gold on Tuesday broke above the key $600/oz level for the first time in a quarter of a century, trading as high as $604/oz.
“The market is down. I think it has outrun itself and there is definitely profit-taking coming in. It’s a global situation — the Dow was down, the FTSE is down, Australia was down and all the Eastern markets were grim,” a dealer said.
He added that metals prices had also all pulled back after surging on Tuesday.
Weakness in their ADRs (American Depository Receipts) in New York overnight was knocking gold miners locally.
“I think because golds were pushed up so radically in our market, when gold slipped back below $600 — which is a major level — they took a big thump,” the dealer commented.
On the resources index, London-listed Anglo American weakened 1,62% or R4,20 to R255,50 and BHP Billiton slumped 3,48% or R4,30 to R119,20.
Harmony Gold dropped 3,22% or R3,11 to R93,39, AngloGold Ashanti tumbled 2,62% or R8,30 to R308,70 and Gold Fields gave up 2,19% or R3,05 to R136,50.
Petrochemicals group Sasol slipped 1,25% or R1,60 to R237.
While Impala Platinum was off R10 at R1 160, AngloPlat was R4 firmer at R605 after earlier trading at a record high of R608.
On the all-share industrial index, London-listed brewer SABMiller strengthened 1,68% or R2 to R121.
SABMiller said in a trading update before the opening that it recorded good organic growth of 5% in lager volumes for the 12 months to end March 2006, and group financial performance was in line with management’s expectations.
Retailer Shoprite featured prominently, rocketing 8,18% or R1,80 to R23,80 on market speculation following its cautionary announcement issued after the close on Tuesday, in which the group said it was in unspecified talks.
Telecoms group Telkom bounced R1,03 to R144,50, while brand management group Barloworld was 1,22% or R1,60 better at R133,15.
Swiss-listed luxury goods group Richemont, however, slipped 25c to R29,59.
Pulp and paper producer Sappi was 1,53% or R1,40 softer at R90,20 and London-listed IT group Dimension Data surrendered 2,38% or 15c to R6,15.
PP Cement was down 1,55% or R6,49 at R413,51 and construction group Murray & Roberts retreated 1,22% or 34c to R27,50.
On the financial front, London-listed Old Mutual fell 2,08% or 45c to R21,21. Sanlam slipped 1,46% or 24c to R16,15.
Niche banking group Investec was 1,82% or R6 in the red at R323.
RMB Holdings slid 2,35% or 70c to R29,05 and FirstRand weakened 1,24% or 25c to R19,90. Nedbank eased 85c to R125,65, Absa shed 89c to R120,50 and Standard Bank dipped 30c to R84,70. — I-Net Bridge