Resource heavyweights Anglo American and BHP Billiton forced the JSE to turn around from its positive start, dragging it lower by midday on Thursday.
At noon, the broader all-share index shed 0,44% as resources lost 2,07%. The platinum- and gold-mining indices pulled back 1,14% and 0,27% respectively. But industrials gained 0,67%, banks rose 0,89% and financials were 1,47% higher.
The rand was bid at 6,99 to the United States dollar from 6,89 when the JSE closed on Wednesday, while gold was quoted at $880,15 a troy ounce from $891,03/oz at the JSE’s last close.
“The market is still very nervous, and with the US dollar recovering against the euro, there has been a bit of pressure put on Anglo and Billiton, even though the rand is weaker. But we might see a little bit of buying come into this market again,” said a local equities trader.
Resource group Anglo American was down R13,90, or 3,66%, to R366,10 at midday, while Melbourne-based BHP Billiton gave up R6,24, or 3,2%, to R188,70 but Sasol recovered R2 to R323,50.
He also said that world markets were higher, and slightly firmer Dow futures indicated the possibility of a good start on Wall Street later on Thursday. But he said that this was all disconnected with the JSE, which was down at midday.
“It is a bit of a mixed market, with buying interest coming in for some of the shares. If the overseas markets start to rally, we might see the JSE pick up again, but it’s a lot of these mining stocks that are dragging us down,” he said
Among platinum counters, Anglo Platinum pulled back R25, or 2,27%, to R1 077 and Lonmin was R11,43, or 2,49%, lower at R448,44.
Gold miner AngloGold Ashanti shed 50 cents to R324 and Goldfields climbed R1,77, or 1,55%, to R116,02.
Among industrial stocks, brewer SABMiller slipped R2,99, or 1,75%, to R167,82. It said earlier that its worldwide beer volumes grew 7% in the third quarter and financial performance was in line with its own expectations.
Sugar maker Illovo declined 85 cents, or 3,53%, to R23,25 after saying that headline earnings per share and earnings per share for the year to March 31 2008 were expected to be only marginally above last year.
Elsewhere, retailer Mr Price eased five cents to R19,75. It reported that sales increased by 14,6% in the quarter ended December, with comparable sales growing 5,2%.
Clothing and food retailer Woolworths was 44 cents, or 3,05%, weaker at R14 after reporting in a trading update that it increased sales by 16,1% for the 26 weeks to December 23, compared with the same period last year.
Nu Clicks was unchanged at R13,82. It increased sales by 13,1% for the four months ended December 2007.
Among financial and bank shares, Investec improved R1,63, or 2,8%, to R59,79 and Standard Bank collected R2,50, or 2,67%, to R96.
Insurer Old Mutual rose 71 cents, or 3,5%, to R21,01. — I-Net Bridge