After making a brief foray into positive territory in early trade, the JSE was back in the red shortly before noon on Tuesday as uncertainty on global markets took its toll. A slightly stronger rand and lower base metals prices added to the bourse’s woes.
By 11.41am, the all-share index shed 0,34%. Resources retreated 0,73% and the gold-mining index lost 0,45%, but the platinum-mining index perked up 0,75%. Industrials were 0,23% higher. Financials eased 0,11% and the banks index was flattish (-0,02%).
The rand was bid at 7,19 per dollar from 7,21 when the JSE closed on Monday, while gold was quoted at $647,65 a troy ounce from $647,05/oz at the JSE’s last close.
“All emerging markets tried to have a rally off their lows this morning and we went into the green temporarily. There was a perception we might have a bounce after a five-day sell-off but we walked into a wall of selling,” a dealer said.
He explained that there was so much uncertainty about factors such as the crisis in the Middle East and the currency that there was no reason for the market to go higher. The slightly stronger rand was not helping on the resources side and world markets in general were weaker.
After four days of steep losses, the Dow was only able to bounce eight points on Monday. On Tuesday there was a late sell-off on as well.
“There is just more selling than buying. I would imagine the Dow will be down another 100 points tonight,” the dealer asserted.
He said that while the Brent price continued to climb, base metals were coming under pressure as well and this was preventing stocks that would normally benefit from high oil prices, such as BHP Billiton, from benefiting.
In morning trade, BHP Billiton shares lost 1,29% or R1,71 to R130,99. Anglo American surrendered 1,44% or R4,01 to R274.
AngloGold Ashanti slipped R3 to R335, Gold Fields dipped 51c to R168,99 and Harmony weakened R1 to R110.
Junior miner DRDGOLD, however, jumped 2,52% or 28c to R11,38.
DRDGOLD announced earlier that its attributable ore reserves had increased by 35% from 6,5-million to 8,8-million troy ounces.
AngloPlat leaped 2,72% or R18,82 to R710 but Impala weakened R6 to R1 206.
Among industrials, Swiss-listed luxury goods Richemont retreated R1,16 or 35c to R29,80.
Cellular network operator MTN Group tumbled 2% or R1 to R48,99.
PP Cement was 1,5% or R5,50 softer at R362.
Retailer Foschini fell 1,27% or 53c to R41,15.
London-listed brewer SABMiller, however, was 1,34% or R1,65 stronger at R124,75.
Services group Bidvest gained 1,69% or R1,60 to R96,30.
Hospital group Netcare surged 4% or 36c to R9,36.
Mittal Steel was bolstered 1,99% or R1,50 to R77, while construction company Group Five rebounded 3,45% or 94c to R28,20.
Retailer JD Group, which hit a one-year low on Monday, bounced 1,97% or R1,20 to R62.
On the financial front, London-listed Old Mutual fell 20c to R20.
Sanlam was off 10c at R14,15.
Banking group FirstRand dipped 4c to R15,87 and Absa was down 40c at R96,10, but Standard Bank was 40c better at R70,40. — I-Net Bridge