While still in the red, the JSE was well off its lows at midday on Monday following a slight recovery in commodity prices. The all share index nevertheless remained below the psychological 20 000 level.
By 12.07pm, the all share index was 1,16% softer at 19 966,02 after earlier touching a low of 19 784,02. Resources were down 1,67%, while the gold and platinum mining indices were 1,94% and 3,37% weaker respectively. Financials fell 1,45% and the banks index lost 1,9%, while the all share industrial index eased 0,33%.
The rand was bid at 6,60 per dollar from 6,56 when the JSE closed on Friday, while gold was quoted at $646,05 a troy ounce from $652,50/oz at the JSE’s last close.
“The market is currently bouncing off its lows. Commodity prices have made a nice comeback over the last hour or so, particular platinum and we are seeing nice buying in names there,” a dealer said.
He continued that there had been an oversold situation in the market earlier in the morning.
“A bit of panic struck markets. Volumes were not great and commodity prices collapsed in a heap,” he explained.
In addition to metals prices, the rand had also stabilised at around 6,60 after earlier trading at a worst level in six months of 6,67.
With stability returning, buyers were coming in at these levels although whether this was due to bargain hunting or short covering remained to be seen.
The dealer said that the JSE’s course on the day remained dependent on commodities. If these continued to recover and were flat on the day when New York came in, more buying was likely. However, if they remained at current levels, the market was probably in for another round of selling.
On the resources index, London-listed Anglo American tumbled 2,8% or seven rand to R243,10, while BHP Billiton was 91 cents weaker at R123,52.
AngloPlat slumped 3,1% or R19 to R593, while Impala dropped 3,34% or R39,98 to R1 156. The counters earlier traded as low as R588 and R1 141 respectively.
Gold Fields fell 3,55% or R4,90 to R133 and Harmony was 1,62% or R1,42 lower at R86,07.
Petrochemicals group Sasol, however, strengthened R2,20 to R245,20.
On the all share industrial index, Swiss-listed luxury goods group Richemont rose 15 cents to R29,95.
Food group AVI advanced 1,58% or 24 cents to R15,45. Mittal Steel firmed 50 cents to R66 and cellular network operator MTN Group gained 40 cents to R57,01.
Food group Tiger Brands, however, fell 1,71% or R2,70 to R155,10.
PP Cement slid 1,9% or R7,50 to R387,50, while construction group Murray & Roberts retreated 1,53% or 39 cents to R25,10.
Fast food group Famous Brands dropped 3,2% or 40 cents to R12,10, while retailer Pick ‘n Pay was off 1,51% or 45 cents to R29,30.
On the financial front, life insurer Sanlam slipped 1,94% or 30 cents to R15,20 and Liberty Group gave up 1,73% or R1,39 to R79,10.
Nedbank plunged 3,34% or R4,01 to R115,99 and Absa lost 3,12% or R3,48 to R108,02.
FirstRand fell 1,87% or 34 cents to R17,85, while Standard Bank was 1,41% or R1,10 lower at R76,80. – I-Net Bridge