The JSE remained lower across the board at noon on Monday on inflation worries ahead of data releases later in the week. Weaker overseas markets — after a sharp fall in New York on Friday — added to the bearish undertone.
At noon, the all-share index was off 0,72%. Resources fell 0,76%, the gold- and platinum-mining indices gave up 0,25% and 0,99% respectively. Industrials eased 0,46%, financials were down 1,11% and banks shed 1,40%.
The rand was bid at 7,13 to the United States dollar from 7,12 when the JSE closed on Friday, while gold was quoted at $651,40 a troy ounce from $652,80 at the JSE’s last close.
“There’s a lot of nervousness about interest rates and their impact on corporate profits,” a Johannesburg-based trader said.
Investors will be watching the release of the CPI, PPI, money supply and trade data later in the week for clues as to the direction of short-term interest rates.
Banks and financials were the worst hit and the trader said they would remain under downward pressure ahead of the data. Standard Bank was down 1,64%, or R1,70, to R101,70, Nedbank fell 1,16%, or R1,59, to R136, Absa gave up 1,75%, or R2,33, to R130,45 and FirstRand eased 22 cents to R22,84.
Life insurer Old Mutual shed 1,40%, or 35 cents, to R24,60 and Sanlam slipped 1,20%, or 27 cents, to R22,25.
On the resource index, Anglo American fell 1,52%, or R6,60, to R426,20 after brokerage house Cazenove was reported to have downgraded it to “in line”, the trader explained.
But BHP Billiton gained 15 cents to R195,40d after the same brokerage house raised it to outperform.
Among gold counters, Ashanti dipped R1 to R276 and Harmony weakened 59 cents to R104,01 rand.
Platinum miner Anglo Platinum slipped 1,64%, or R21,05, to R1 263,95 and Lonmin receded 1,36%, or R8, to R580.
Aluminium group Hulamin, which debuted on the JSE on Monday, was trading at R33,50 after earlier touching a high of R42.
Elsewhere, media group Naspers was 1,09%, or R2,05, weaker at R186. The company is due to release its year-end earnings on Tuesday.
Heavyweight industrial group Barloworld dropped 1,03%, or R2, to R192. Barloworld is understood to be on the brink of selling its Australian coatings business to Pittsburgh-based PPG Industries, Business Day reported this morning. — I-Net Bridge