The JSE was awash with red in noon trade on Wednesday, against the backdrop of lower commodity prices and uncertain world markets. News that the corruption case against former deputy president Jacob Zuma had been thrown out of court saw the bourse come under further pressure initially but these losses were short lived.
By 12.03pm, the all share index shed 1,17%. Resources retreated 1,84%, with the gold and platinum mining indices tumbling 2,39% and 2,09% respectively.
Industrials lost 0,5%, financials fell 0,99% and the banks index was 1,4% in the red.
The rand was bid at 7,43 per dollar from 7,34 when the JSE closed on Tuesday, while gold was quoted at $576,05 a troy ounce from $580,69/oz at the JSE’s last close.
”The market came off immediately after the Zuma news, but it has put on about 120 points since then,” a dealer said.
He continued that the bourse was nevertheless softer across the board.
”The market is very uncertain. There is not enough action going through — volumes on the cash market are fair, but one would have expected more the day
before futures closeout,” he commented.
The dealer said that commodity prices were looking very stodgy and this was definitely a drag on the JSE.
”World markets are not giving us a lot of direction. There is a lot of nervousness ahead of tonight’s US rate decision.”
In morning trade, London-listed diversified resources group Anglo American lost 1,54% or R4,56 to R291,19 and BHP Billiton lost 1,86% or R2,36 to R124,25.
Petrochemicals group Sasol slid 2,07% or R4,89 to R231,01.
AngloGold Ashanti dropped 3,48% or R10 to R277, Gold Fields fell 1,68% or R2,21 to R128,99 and Harmony surrendered 2,26% or R2,02 to R87,55.
AngloPlat was off 2,16% or R15,60 to R705,40, while Impala was 2,14% or R25,70 lower at R1 174,30.
Among industrials, Swiss-listed luxury goods group Richemont rose 19 cents to R35,43.
Hospital group Netcare strengthened 1,13% or 14 cents to R12,53 and generic medicine manufacturer Aspen bounced 20 cents to R34,60.
Brand management group Barloworld slumped 2,82 or R3,65 to R125,75, services group Bidvest shed 2,18% or R2,50 to R112 and transport and logistics group Imperial gave up 1,49% or R1,95 to R129,05.
Mittal Steel was 2,05% or R1,71 softer at R81,79.
PP Cement weakened 2,9% or R11,10 to R372,15.
Retailer JD Group dropped 1,77% or R1,15 to R63,80.
On the financial front, Liberty Group gave up 3,39% or R2,45 to R69,90. Sanlam was 1,61% or 26 cents softer at R15,85.
Banking group FirstRand fell 1,33% or 24 cents to R17,80, Standard Bank slipped 1,58% or R1,26 to R78,70, Nedbank surrendered 1,24% or R1,36 to R108,34 and Absa eased 76 cents to R99,74. – Reuters