The JSE was back in the red in noon trade on Wednesday, with weakness in global markets preventing it from building on Tuesday’s bounce. A weaker rand helped stem the bourse’s losses.
By 12.10pm, the-all share and all-share industrial indices shed 1,04% and 1,02% respectively. Resources retreated 1,24%, the gold-mining index gave up 1,06% and the platinum-mining index lost 0,65%. Financials fell 0,81% and the banks index was 1,69% in the red.
The rand was bid at 6,61 per dollar from 6,47 when the JSE closed on Tuesday, while gold was quoted at $668,60 a troy ounce from $669/oz at the JSE’s last close.
“American markets were shocking yesterday [Tuesday] due to worries about inflation. Europe is also down today [Wednesday],” a dealer said. “Also, we might have run too hard yesterday [Tuesday], but I don’t think that’s the reason. I think there is caution and this correction is going to be with us for come time. People are very edgy at the moment and America’s failure to build after steadying on Monday just frayed nerves further.”
The dealer said that the JSE’s losses would have been even steeper were it not for the rand and noted that heavyweights Anglo American, BHP Billiton and Richemont were significantly weaker offshore than they were locally.
“I think the rand has also triggered some selling here, particularly from foreigners,” he added. However, this was mainly in industrial stocks that did not have as much weight in the all-share index.
“I’m disappointed we didn’t show more resilience. The mood on overseas markets is dictating what’s happening here,” the dealer concluded.
On the resources index, Anglo was off R2,51 at R253 and BHP Billiton lost 1,51% or R1,93 to R126,05.
Petrochemicals group Sasol slid 2,37% or R5,99 to R247,01.
AngloGold Ashanti shed 1,98% or R6,15 to R304,25, Gold Fields fell 85c to R136,50 and Harmony was 50c softer at R93.
AngloPlat tumbled 2% or R12 to R588.
Industrials to decline included London-listed brewer SABMiller, which slipped 1,2% or R1,20 to R123.
Swiss-listed luxury goods group Richemont eased 24c to R30,51.
Transport and logistics group Imperial dropped 3,89% or R5,99 to R148 and services group Bidvest slumped 2,42% or R2,50 to R101.
Cellular network operator MTN Group gave up 1,79% or R1 to R55.
PP Cement tumbled 2,25% or R9 to R391, while construction group Aveng weakened 2% or 44c to R21,56.
Retailer Pick ‘n Pay was 2,54% or 75c in the red at R28,75.
Hospital group Netcare, however, bounced 1,25% or 12c to R9,74.
Banks led financials lower, with Absa plunging 3,04% or R3,49 to R111,50. Standard Bank slipped 1,28% or R1 to R77, FirstRand fell 1,24% or 22c to R17,58d and Nedbank was down 1,42% or R1,65 at R114,50.
Life insurer Sanlam was 1,91% or 30c softer at R15,40. — I-Net Bridge