The JSE was weaker in noon trade on Thursday, unable to escape the red tide that was sweeping world markets. Steep losses were seen in interest-rate-sensitive stocks — a weaker rand meant they were hit by a double whammy.
By 11.54am, the all-share index shed 1,11%. Resources retreated 1,12%, with the gold- and platinum-mining indices sliding 1,81% and 1,93% respectively. Financials fell 1,39% and the banks index tumbled 2,03%. The all-share industrial index was 0,92% softer.
The rand was bid at R7,19 per dollar from R7,11 when the JSE closed on Wednesday, while gold was quoted at $650,24 a troy ounce from $654,17/oz at the JSE’s last close.
“Obviously we are following world markets. Everything is in the red,” a dealer said. “The rand is weaker, but it is not supporting the market at all.”
She continued that geopolitical factors, such as rising tensions in the Middle East and Tuesday’s bomb blasts in Mumbai, were dampening sentiment globally.
The rand’s weakness — and its inflationary implications — was exacerbating losses of interest rate sensitive stocks such as banks and retailers.
These stocks, which were hit hard last month, have since benefited as players switched into them from resources.
“Also, the market has run hard and was expected to come down. I reckon it is very expensive at these levels and it is time to take a bit of profits.”
On the resources index, London-listed Anglo American lost R1,57 to R294,10 and BHP Billiton weakened R1,39 to R141,60.
Petrochemicals group Sasol slipped 1,27% or R3,50 to R272,50.
Gold Fields fell 2,76% or R4,80 to R169 and AngloGold Ashanti shed 1,47% or R5,30 to R355,10. Harmony was 1,58% or R1,85 lower at R115,05.
Junior miner DRDGold, however, surged 4,38% or 46 cents to R10,96.
Impala Platinum plunged 3,24% or R43,50 to R1 301 and AngloPlat dipped two rand to R748.
Among industrials, media group Naspers tumbled 2,55% or R3,14 to R120.
Telkom lost 1,6% or two rand to R123,02 and MTN Group eased 35 cents to R53,55.
Mittal Steel was 2,49% or two rand softer at R78,20 and pulp and paper producer Sappi shed 2,16% or two rand to R90,50.
Services group Bidvest surrendered 1,84% or R1,89 to R101,10 and transport and logistics group Imperial weakened 1,53% or R2,06 to R132,80.
Retailer Truworths dropped 3,86% or 88 cents to R21,90 and Edcon sagged 3,1% or 85 cents to R26,60.
Banks led financials lower with Standard Bank sinking 2,65% or R2,05 to R75,20. Absa slipped 1,97% or R2,08 to R103,50, Nedbank weakened 1,67% or two rand to R117,50 and FirstRand fell 1,71% or two rand to R17,20.
Life insurer Sanlam slumped 2,28% or 35 cents to R15,03, while London-listed Old Mutual was off 1,5% or 32 cents at R21,05. — I-Net Bridge