The JSE was in negative territory at midday on Monday after a quiet morning’s trade. Lower commodity prices and futures-related selling ahead of Thursday’s close out were both weighing on the local bourse.
By 12.05pm, the all-share index shed 1,62%. The resources and gold-mining indices tumbled 2,16% and 2,7% respectively, while the platinum-mining index plunged 4,64%. Industrials weakened 0,89%, financials fell 1,53% and the banks index was 2,1% in the red.
The rand was bid at R6,73 per dollar from R6,69 when the JSE closed on Friday, while gold was quoted at $607,45 a troy ounce from $614,55/oz at the JSE’s last close.
“The market has been very quiet. There is not a lot of volume going through,” a dealer said.
“Offshore markets were a bit on the negative side, but not massively so. Our market has taken quite a smack, but there was a huge rise on Friday and I think what is going on is futures related. On Friday in the last hour, the market was pushed up over 400 points,” he continued.
Lower commodity prices were also playing a large role in the JSE’s weakness. The heavy weight of these stocks was dragging the index down, forcing derivatives traders to sell other index stocks as well, the dealer commented.
On the resources index, London-listed Anglo American slid 1,79% or R4,32 to R236,53. BHP Billiton slid 2,34% or R2,80 to R117.
Gold Fields slumped 2,33% or R2,91 to R122, Harmony fell 3,48% or R3,25 to R90,25 and AngloGold Ashanti shed 2,75% or R7,73 to R273,70.
Impala Platinum dived 5,82% or R64 to R1 036 and AngloPlat slumped 3,2% or R18,19 to R551.
Among industrials, Swiss-listed luxury-goods group Richemont retreated 1,79% or 53 cents to R29,07.
Food group Tiger Brands dropped 3,47% or R5,15 to R143,10, while AVI plummeted 4,03% or 80 cents to R14,30.
AVI said in a trading update on Monday morning that its consolidated headline earnings per share for its continuing operations for the 12 months ending June 30 are expected to be between 0% and 5% lower than the 108,2 cents per share achieved in the prior year.
Media group Naspers slid 3,3% or four rand to R116, while transport and logistics group Imperial lost 1,64% or R2,20 to R131,80.
Mittal Steel weakened 3,08% or R1,97 to R62.
Pretoria Portland Cement (PPC) tumbled 2,86% or R10 to R340.
Retailer JD Group gave up 1,22% or 85 cents to R69,10 and Shoprite slipped 1,76% or 41 cents to R22,95.
Truworths, however, bounced 2,61% or 60 cents to R23,60 and Ellerine rebounded 2,07% or R1,50 to R74,06.
Telkom climbed R1,15 to R128,95.
On the financial front, life insurer Sanlam slid 2,52% or 37 cents to R14,30 and London-listed Old Mutual was 1,21% or 24 cents lower at R19,56.
Banking group FirstRand fell 3,6% or 64 cents to R17,16, Nedbank dropped 2,04% or R2,39 to R114,60, Absa was off 2,26% or R2,40 at R103,60 and Standard Bank surrendered 70 cents to R76.
Investment company Remgro was 2,11% or R2,76 in the red at R128. — I-Net Bridge