The JSE continued its fall at midday on Friday, taking its cue from world markets, which were retreating further as international credit worries weighed heavily.
At midday, the JSE all-share index had dipped 3,18%, with resources tumbling 4,01%, the gold mining index losing 3,01% and the platinum mining index falling 3,11%. Financials eased 3,68% and banks were 4,30% lower, while industrials were off 1,93%.
The rand was bid at 7,17 to the US dollar from 7,01 when the JSE closed on Wednesday, while gold was quoted at $663,65 a troy ounce from $676,10/oz at
the JSE’s last close.
South African markets were closed on Thursday for a holiday, when subprime woes came back to haunt global markets.
“International markets had a huge pull back yesterday [Thursday], especially the US as subprime issues have now started to bother everyone. This spilled over to us this morning, with investors really nervous about holding onto their stocks. A huge global sell-off is being seen today,” said a local equities trader.
On Thursday the Dow ended down 2,83% and Asian markets also weakened sharply on Friday morning. The Nikkei ended down 2,4% and Hong Kong’s benchmark Hang Seng slid 2,9%, before trade was suspended because of a typhoon. Australian
shares shed 3,5%. In London the FTSE was last down 2,4%.
On the JSE, Anglo American was R12,15, or 3%, lower at R392,85 and BHP Billiton dipped 5,82%, or R11,69, to R189,12. Sasol shed R11,44, or 4%, to R274,56.
Among gold miners, Anglogold Ashanti pulled back 1,84%, or R5,01, to R266,99. Gold Fields was down 4,04%, or R4,45, to R105,60 and Harmony was off 2,84%, or R1,99, to R68.
Anglo Platinum was down 1,98%, or R18, to R892, and Impala Platinum was off 4,02%, or R8, to R191. Lonmin dipped 2,57%, or R12,33, to R468,19. However, Northan was up 20 cents to R51,70.
Highveld Steel was also a bright spot, adding R1,11, or just over 1%, to R100.
Paper and Pulp producer Sappi eased R3,93, or 3,57%, to R106,14, but Mondi edged up 10 cents to R64,50 and Mondi climbed 95 cents, or 1,44%, to R67.
PPC fell R1,79, or 4,09%, to R42 and diversified industrials group Barloworld pulled back R3,11, or 2,59%, to R116,78 and Imperial weakened 3,51%, or R4,99, to R137.
Remgro dipped R4,99, or 2,7% to R179,50.
Brewing giant SAB Miller was R3,50, or 1,89% lower, at R182.
In retailers, Massmart weakened R2,19, or 2,6% to R82,19 and New Clicks was unchanged at R14,55. Mr Price was off 1,11%, or 30 cents, to R26,70, but Foschini was up 41 cents to R60,46.
Media group Naspers lost R4,60, or 2,71%, to R165,40 and Caxton retreated R1,50, or 8,33% to R16,50.
Among financial stocks, Investec gave up R6,80, or 7,79%, to R80,50 and Investec was off R6,91, or 7,92%, to R80,29.
Fixed-line operator Telkom, was R4,70, or 2,71%, lower at R169 and MTN group lost R2,90, or 2,82% to R100,05.
Banking group Standard Bank was off R4,90, or 4,57%, to R102,30, Absa was off R6,50, or 4,59%, to R135, while Nedbank was R4,02 weaker, or 2,88%, at R135,48. FirstRand gave up R1,06, or 4,47% to R22,64.
Life assurance group Old Mutual Plc gave up R1,34, or 5,59%, to R22,65. The group earlier reported steady profits with underlying strong growth for the six months ended June. It increased its interim dividend by 10% to 2,3 pence per share (32,59 SA cents) and its adjusted earnings per share were steady at 8,2 pence.
The London and Cape Town based insurer reported that its net client flows were £11,8-billion, while Life APE was up 10% to £859-million — up 17% at constant exchange rates. The company reported that South African sales are up 21% as sales force productivity grows. Corporate sales were said to be flat.
Investment performance was strong in US and Europe, and recovering in South Africa. Funds under management increased 11% to £263-billion.
Santam retreated R5,80, or 5,23%, to R105. – I-Net Bridge