The JSE remained under pressure at noon on Wednesday as weaker metal prices weighed on heavily weighted resource stocks, while investors digested the slightly above forecast inflation data.
At noon, the all-share index was off 1,37%. Resources gave up 2,38% and the gold- and platinum-mining indices were down 0,84% and 1,69% respectively. Industrials shed 0,53%, financials dipped 0,66% and banks dropped 0,32%.
The rand was bid at 7,20 to the United States dollar from 7,16 when the JSE closed on Tuesday, while gold was quoted at $642,15 a troy ounce from $644,05 at the JSE’s last close.
“Resources are down sharply due to sustained weaknesses on the metal prices. There’s still a lot of jumpiness about interest rates in the country and overseas,” a Johannesburg-based trader said.
He added that the he did not expect the market to show noticeable reaction to the inflation data that was released as it was more or less in line with expectations.
Statistics South Africa reported on Wednesday that the May CPIX (consumer price index excluding mortgage rate changes) — a key inflation measure — rose 6,4% year-on-year, slightly above the 6,3% the market had expected.
Investors would receive another dose of inflation data in the form of PPI on Thursday and money supply and trade data on Friday for further clues on interest-rates outlook.
On the resource index, Melbourne-based resource group BHP Billiton slumped 3,40%, or R6,79, to R193,05 and Anglo American was down 2,79%, or R11,90, to R414.
Synfuels producer Sasol eased R1,83 to R259,19.
Among gold counters, Gold Fields dropped 2%, or R2,30, to R112,42. It said earlier that, through its unit Gold Fields Exploration BV, it has upped its stake in exploration company Gold Quest by 2,43% to 10,85%.
Newly listed aluminium group Hulamin dipped 2,56%, or 87 cents, to R33,12 and Tongaat was down 1,90%, or R1,80, to R93.
Among banks, Standard Bank edged up 70 cents to R100,70 but Nedbank fell 1,48%, or R1,98, to R132,01.
Life insurer Old Mutual gave up 19 cents to R24,37 and Sanlam pulled back 1,40%, or 31 cents, to R21,91.
Grocery retailer Pick ‘n Pay gained 1,13%, or 39 cents, to R34,89, but Spar dipped 2,26%, or R1,22, to R52,70. — I-Net Bridge