The JSE retained its weak tone at noon on Monday, in line with overseas markets amid renewed concerns about the health of the United States economy.
At 11.56am, the all-share index was off 1,51%. Resources fell 2,48%, while the gold-mining and platinum-mining indices gave up 1% and 3,47% respectively. Industrials fell 0,72%, financials shed 0,86% and banks dropped 1,35%.
The rand was bid at 6,85 to the US dollar from 6,80 when the JSE closed on Friday, while gold was quoted at $755,65 a troy ounce from $759,95/oz at the JSE’s last close.
Investors worldwide continued to flee from equities after a series of bad-earnings results from subprime housing market-exposed companies in the US cast doubt on the health of that country’s economy, traders said.
“Poor results from the US companies that are exposed to the housing market suggest that it’s too early to say the worst of subprime crisis is behind us,” said Makwe Masilela, a trader at Nehawu Securities.
The mood on the local bourse is expected to be dented throughout the session, sentiment being that Wall Street is poised to resume its downward trend.
Dow Jones Newswires reports that the Dow Jones Industrial Average is expected open down 107 points at 13 415 and the S&P 500 down 11,6 at 1489.
On the JSE’s resource index, Anglo American fell 2,74%, or R12,13, to R431 and BHP Billiton gave up 2,63%, or R6,69, to R247,50.
Petrochemicals group Sasol shed 2,07%, or R6,89, to R326,10.
Among gold miners, AngloGold Ashanti was down 1,22%, or R3,64, to R294,31 and Gold Fields weakened 1,03%, or R1,26, to R120,75.
Leading platinum counters were the worst casualties among the blue chips stocks with Anglo Platinum tumbling 4,25%, or R46,89, to R1 055,11 and Impala Platinum slumping 3,76%, or R8,92, to R228,01.
Industrial stocks did not escape the selling pressures. Brewer SABMiller edged down 51 cents to R199,49, industrials brands group Barloworld retreated 1,77%, or R2,27, to R126,20 and food and beverage group Famous Brands slipped 1,67%, or R30, to R17,70.
Among banks, Standard Bank dipped 1,89%, or R2, to R104; Nedbank fell 1,36%, or R1,87, to R135,13; Absa lost 1,34%, or R1,70, to R124,75; and FirstRand was 1,06%, or 25 cents, softer at R23,42. — I-Net Bridge