South African stocks remained weak at noon on Thursday in line with overseas markets, but a rally among miners helped soften the blows as gold continues to lead the commodities stampede.
By noon on the JSE, the all-share index was 0,82%, or 239,2 points, weaker at 29 050,940, after dipping more than 350 points just after the opening. Banks fell 1,77%, industrials weakened 1,31% and financials lost 1,50%. Resources edged down 0,10% but the gold- and platinum-mining indices surged 4,65% and 2,05% respectively.
The rand was bid at 6,85 to the US dollar from 6,80 when the JSE closed on Wednesday, while gold was quoted at $866,07 a troy ounce from $846,05/oz at the JSE’s last close.
Although commodity prices are strong enough to lift the bourse, local investors’ paths are largely dictated by the downbeat sentiment overseas, where bad United States manufacturing data and rampant oil price re-sparked fears that the US economy might slip into recession.
“Unfortunately, world markets, especially Wall Street, set the agenda for us, and at the same time high commodity prices provide buying opportunities,” one trader said.
A while ago, gold hit a fresh record high of $866/oz as a rising oil price — flirting with $100 per barrel — stirred up global inflation fears and encouraged investors to pile into the metal, seen as a safe haven, traders said.
In reaction, AngloGold Ashanti soared 4,83%, or R14,40, to R312,90, Gold Fields was up 4,93%, or R5, to R106,97, and Harmony rallied 3,76%, or R2,65, to R73,48.
Platinum stocks reversed earlier losses as white metal prices followed the gold price’s strength, while resource heavyweights were off earlier lows, also supported by the commodities stampede.
Platinum miner Anglo Platinum added 1,97%, or R20,49, to R1 075 and Impala Platinum gained R2,10 to R245,17.
Resource heavyweight Anglo American was down 2%, or R8,40, at R418,89, after earlier dipping as low as R408. Rival BHP Billiton lost 1,42%, or R2,98, to R210,30, recouping nearly R6 lost early in the session.
Away from the miners, industrial heavyweight Barloworld lost 3,02%, or R3,10, to R103 and brewer SABMiller was down 71 cents to R194.
Among banks, Standard Bank shed 1,58%, or R1,60, to R101,40 and Nedbank dropped 1,78%, or R2,49, to R138,95. — I-Net Bridge