Unable to hold onto its early gains, the JSE was weaker across the board in noon trade on Thursday. The bourse was knocked by the triple whammy of higher-than-expected producer price index (PPI) data, a stronger rand and European markets turning lower.
By 12.07pm, the all-share index slipped 0,47%. Resources retreated 0,64%, the platinum-mining index lost 0,42% and the gold-mining index dipped 0,12%. The all-share industrial and financial indices fell 0,32% and 0,37% respectively, while the banks index was 0,62% in the red.
The rand was bid at 7,04 per dollar from 7,07 when the JSE closed on Wednesday, while gold was quoted at $622,60 a troy ounce from $618,42/oz at the JSE’s last close.
“The JSE has turned red. It has probably got a lot to do with the PPI, which came in higher then expected,” a dealer said. “The market was spooked by that because it means we could see interest rates hiked more aggressively.”
He continued that the stronger rand was also putting a bit of a dampener on the market. Another factor was European markets, which had also gone into the red.
South Africa’s PPI rose by 8,1% year-on-year (y/y) in July from a 7,5% y/y increase in June, Statistics South Africa (Stats SA) said at 11.30am.
The PPI rose 1,7% on a monthly basis after June’s monthly rise of 3%.
On the resources index, London-listed Anglo American lost R2,14 to R312,06 and BHP Billiton weakened 1,02% or R1,40 to R135,20.
Petrochemicals group Sasol eased R1 to R253.
AngloPlat slumped 1,49% or R12,40 to R822,10 and Impala was off R4,99 at R1Â 350,01.
While AngloGold Ashanti shed R1,80 to R325, Harmony was 43c higher at R97,93.
Coal and iron ore miner Kumba was 50c in the black at R144,50 after touching a record high of R144,50.
African Rainbow Minerals leaped 3,51% or R2 to a highest ever R59 after it reported fully diluted headline earnings per share of 223c for the year ended June from 166c a year ago.
Among industrials, Swiss-listed luxury goods group Richemont surrendered 30c to R33,70.
Cellular network operator MTN Group tumbled 2,1% or R1,25 to R58,25 and food group Tiger Brands fell 1,36% or R2,10 to R152.
Furniture retailer JD Group dropped 2,03% or R1,40 to R67,50.
London-listed brewer SABMiller was up a marginal 5c at R139,50 after reaching a record high of R141.
Mittal Steel strengthened 1,33% or R1 to R76.
Construction and engineering group Aveng, which earlier traded at a highest-ever level of R27,49, was 2,66% or 70c to the good at R27. PP Cement was up 1,42% or R5,50 at R393.
Aspen Pharmacare added 1,24% or 41c to R33,50.
On the financial front, FirstRand fell 1,21% or 22c to R18. Standard Bank slipped 39c to R80,11 and Absa surrendered 55c to R103.
Nedbank, however, inched up 39c to R109,50.
London-listed financial services group Old Mutual was 10c softer at R22,10 and health and life insurer Discovery slipped 20c to R21. — I-Net Bridge