JSE, world markets sharply lower

The JSE remained sharply weaker by midday on Wednesday, in line with other world markets, which were also experiencing a bumpy ride.

At noon, the JSE’s all-share index was 2,97% in the red. The gold- and platinum-mining indices slumped 4,09% and 4,07% respectively, while resources were off 3,27%. Banks retreated 2,88%, financials dipped 2,4% and industrials were down 2,84%.

The rand was bid at 6,91 to the United States dollar from 6,75 when the JSE closed on Tuesday, while gold was quoted at $883,03 a troy ounce from $911,85/oz at the JSE’s last close.

“The JSE is down — everything across the board has been smashed because of overseas markets,” said a local equities trader.

Disappointing results on Tuesday from Citigroup and weaker US December retail sales data led to a sharp sell-off on Wall Street overnight, and it fuelled fears of a possible US recession.

Wall Street’s DJIA lost 2,17%, the Nasdaq fell 2,45% and the S&P 500 pulled back 2,49%. In the United Kingdom on Wednesday, the FTSE 100 eased 0,78%, but in Asia, the Hang Seng slumped 5,37% and the Nikkei retreated 3,35%.

The trader said that there was a general rotation out of equities. He added that the gold-mining sector was down the most on the JSE as a result of a lower gold price and profit-taking. Gold shares have recently rallied on a higher gold price.

At noon, resource group Anglo American was off R7,20, or 1,86%, to R379, BHP Billiton fell R6,30, or 3,15%, to R194 and Sasol tumbled R18,67, or 5,49%, to R321,33.

Gold miner AngloGold Ashanti was R15,10, or 4,49% weaker, at R321 and Goldfields lost R4,61, or 3,91%, to R113,39.

Platinum-mining group Anglo Platinum gave up R48, or 4,07%, to R1 132, Impala Platinum declined R11,04, or 4,17%, to R253,97 and Lonmin slipped R20,80, or 4,38%, to R453,80.

Building and construction group Basil Read was down R1,40, or 5,13%, to R25,90 and Raubex Group tumbled R4, or 9,64%, to R37,50.

Brewer SABMiller shed ten cents to R172,90, retailer Pick n Pay fell R1,56, or 4,51%, to R33, while Shoprite lost R1,70, or 4,35%, to R37,40. It earlier reported in a trading update that its turnover for the six months ended December 31 2007 increased by 21,8% to R23,3-billion.

Fixed-line operator Telkom gave up R4,62, or 3,48%, to R127,98 and MTN Group retreated R4, or 3,39%, to R114.

Banking group Absa decreased 48 cents, or 2,63%, to R17,80 and Standard bank dipped R3,21, or 3,38%, to R91,79. — I-Net Bridge

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.


The recovered remain cautious

People who have survived Covid-19 are not going through life carefree. They are still taking all the preventative measures

Lockdown relief scheme payouts to employees tops R14-billion

Now employers and employees can apply to the Unemployment Insurance Fund for relief scheme payments

Press Releases

Covid-19 and Frontline Workers

Who is caring for the healthcare workers? 'Working together is how we are going to get through this. It’s not just a marathon, it’s a relay'.

PPS webinar Part 2: Small business, big risk

The risks that businesses face and how they can be dealt with are something all business owners should be well acquainted with

Call for applications for the position of GCRO executive director

The Gauteng City-Region Observatory is seeking to appoint a high-calibre researcher and manager to be the executive director and to lead it

DriveRisk stays safe with high-tech thermal camera solution

Itec Evolve installed the screening device within a few days to help the driver behaviour company become compliant with health and safety regulations

Senwes launches Agri Value Chain Food Umbrella

South African farmers can now help to feed the needy by donating part of their bumper maize crop to delivery number 418668

Ethics and internal financial controls add value to the public sector

National treasury is rolling out accounting technician training programmes to upskill those who work in its finance units in public sector accounting principles

Lessons from South Korea for Africa’s development

'Leaders can push people through, through their vision and inspiration, based on their exemplary actions'

Old Mutual announces digital AGM

An ambitious plan to create Africa’s biggest digital classroom is intended to address one of the continent’s biggest challenges — access to education

The best local and international journalism

handpicked and in your inbox every weekday