The JSE continued to linger in the red at midday on Thursday, burdened by the sell-off on global markets.
By noon, the JSE all-share index had lost 1,43% to 29 872,5 points. The platinum and gold mining indices retreated 2,52% and 1,03% respectively, while resources gave up 1,9%. Banks pulled back 1,44%, financials dropped 1,18% and industrials were 0,99% lower.
The rand was bid at 6,72 to the US dollar from 6,68 when the JSE closed on Wednesday, while gold was quoted at $810,60 a troy ounce from $814,55/oz at the JSE’s last close.
“We saw the US market close off a long way away from where it was when the JSE ended yesterday [Wednesday], and that has followed through to markets in the East,” said a local trader.
In Asia, the Hang Seng lost 2,72% and the Nikkei fell 2,48%.
“This weakness has followed through to European markets,” added the trader.
By midday South African time, the UK’s FTSE 100 had given up 1,32%.
“The JSE has just followed suit, and it’s back below the 30 000 level on the Alsi, which is a bit of a concern,” he said.
The trader added that the market was very confusing, saying that it didn’t make sense, as the volatility was exceptionally high. “There is so much nervousness around,” he said.
“It seems though that general retailers are starting to find a bit of stability after being under a lot of pressure. Shoprite, Woolworths and Truworths are all up,” he added.
By midday on the JSE, retailer Shoprite had lifted 50 cents, or 1,18%, to R43, while Truworths improved 45 cents, or 1,68%, to R27,20 and Woolworths inched up ten cents to R15,05.
However, Woolworths had been replaced by construction group Aveng in the JSE’s Top 40 index. It now moves to the mid cap index, and according to the JSE, the changes will apply on Tuesday December 18 2007. At noon, Aveng was 51 cents softer at R64,99.
Elsewhere, brewer SABMiller dipped R2,35, or 1,28%, to R180,60 and diversified industrial group Barloworld was off R3, or 2,75%, to R106. The trader said that Barloworld was down on profit taking.
Platinum miner Anglo Platinum dropped R22,98, or 2,32%, to R967,02 and Impala Platinum was R7,08, or 2,9% lower, at R237,42.
Melbourne-based resource group BHP Billiton was down R4,20, or 1,85%, to R222,80, Anglo American fell R11, or 2,41%, to R445 and Sasol eased R1,51 to R338.
Gold miner AngloGold Ashanti was off R2 to R296 and Harmony gave up R2,55, or 3,55%, to R69,25.
Among banks, Firstrand lost 44 cents, or 2,01%, to R21,40 and Standard Bank weakened R1,74, or 1,6%, to R107,16.
Shareholders of the Industrial and Commercial Bank of China have approved its acquiring a 20% stake in Standard Bank for around R36,7-billion. Standard Bank shareholders have already given a thumbs-up to the deal. – I-Net Bridge