The JSE had recovered some of its earlier losses by midday on Friday, but was still over half a percent in the red. It had been down as much as 0,93% for the day.
By noon on the JSE, the all-share index was 0,55% lower. The gold- and platinum-mining indices pulled back 2,42% and 1,17% respectively, while resources lost 0,46%. Industrials were down 0,67%, banks fell 0,74% and financials were 0,51% weaker.
The rand was bid at 6,83 to the United States dollar, from 6,85 when the JSE closed on Thursday, while gold was quoted at $828,50 a troy ounce from $826,35/oz at the JSE’s last close.
World markets were lower on troubling news that Pakistani opposition leader and former prime minister Benazir Bhutto was assassinated at a campaign rally in Pakistan, which has raised the possibility of political instability.
According to media reports, a suicide attacker detonated a bomb seconds after Bhutto was shot. She was killed ahead of Pakistan’s parliamentary elections that were scheduled for January 8 and just a few weeks after a state of emergency was lifted in Pakistan, according to the reports.
“We did follow through on Wall Street, which reacted to the story that Bhutto got assassinated. The oil price also went higher on the news, which is quite concerning for inflationary pressures, but the JSE has come off its lows that we saw this morning,” said a local equities trader.
But he said that the news was starting to settle in, and normal economics was beginning to take over the market again.
He added that after the JSE’s recent uptake, a bit of profit-taking was coming in.
“The JSE is not looking bad after its recent strong moves on the upside, but I think we will start to see a real trend when everyone comes back from holidays in a week or two,” he said, adding that it was generally quiet around this time of the year.
By midday on the JSE’s resources index, Anglo American was down R2,55 to R422,50, but BHP Billiton picked up R1 to R214 and Sasol gained R1 to R354.
Gold miner AngloGold Ashanti gave up R10,19, or 3,42%, to R287,81 and Harmony slumped R2,53, or 3,44%, to R71.
Anglo Platinum fell R8 to R1 077 and Impala Platinum retreated R3,80, or 1,52%, to R246,20.
In the building and construction sector, PPC was R2,05, or 4,28% weaker, at R45,85, but Raubex gained R2, or 4,44%, to R47.
Brewer SABMiller dipped 69 cents to R196, while Swiss-based luxury goods group Richemont eased 27 cents to R46,98.
Banking group FirstRand pulled back 24 cents, or 1,14%, to R20,76 and Standard Bank was R1 lower at R104,50. — I-Net Bridge