The JSE was deluged with red just before noon on Tuesday, knocked by the double whammy of weaker world markets and lower commodity prices. A related sell-off in heavyweight resources stocks in London exacerbated the bourse’s woes.
By 11.57am, the-all share index tumbled 2,14%. Resources retreated 2,83%, the gold-mining index dropped 2,95% and the platinum-mining index plunged 3,31%. Industrials slid 2,04%, while the financial and banks indices fell 1,31% and 1,42% respectively.
The rand was bid at 6,74 per dollar from 6,62 when the JSE closed on Monday, while gold was quoted at $634,75 a troy ounce from $640,65/oz at the JSE’s last close.
“There is lots of selling on the back of world markets,” a dealer said. “Commodity prices are also lower and although the rand is looking very weak, it is not helping at all.”
She added that the global sell-off had been sparked by hawkish remarks overnight by Federal Reserve chairperson Ben Bernanke, who cautioned that it was necessary to remain vigilant on inflation.
Demand for commodities would be adversely affected should higher United States rates result in a global slowdown.
On the resources index, Anglo American slumped 3,09% or R8,13 to R254,56 and BHP Billiton weakened 2,37% or R3,06 to R126,14. Both were down over 3,5% in the United Kingdom.
Gold Fields gave up 3,2% or R4,49 to R136,02, AngloGold Ashanti shed 3,95% or R12,50 to R304 and Harmony slipped 1,99% or R1,96 to R96,53.
Junior miner DRDGOLD plummeted 5,77% or 60c to R9,80.
Impala Platinum slid 4,55% or R54,39 to R1 140,61, while AngloPlat surrendered 1,96% or R11,45 to R573,55.
Petrochemicals group Sasol was 2,46% or R6,29 softer at R249,70.
Leading industrials’ decline, Swiss-listed luxury goods group Richemont dropped 2,94% or R1 to R33,05.
Cellular network operator MTN Group gave up 4,15% or R2,41 to R55,60, while Telkom weakened 2,99% or R4,15 to R134,85.
Transport and logistics group Imperial plunged 5,22% or R7,99 to R145 and services group Bidvest shed 3,27% or R3,45 to R102.
London-listed brewer SABMiller, however, inched 30c higher to R121,30.
Financials to fall included life-insurer Sanlam, which was down 2,39% or 37c, at R15,10. London-listed Old Mutual was 1,42% or 30c lower at R20,90.
Specialist bank Investec lost 3,52% or R12,50 to R342,50.
Nedbank surrendered 2,02% or R2,45 to R118,55, Absa slipped 1,56% or R1,75 to R110,50, FirstRand retreated 1,76% or 33c to R18,37 and Standard Bank eased 81c to R80,70.
JSE Limited, which listed on its own bourse on Monday, dived 9,48% or R2,30 to R21,95. — I-Net Bridge