South African stocks remained deep in the red at noon on Tuesday in tandem with overseas markets on inflation worries amid the soaring price of crude oil.
At 12.03pm, the all-share index was down 1,68%. Resources fell 1,59%, while the gold- and platinum-mining indices gave up 2,58% and 0,88% respectively.
Banks weakened 2,86%, financials tumbled 1,74% and industrials fell by the same margin.
The rand was bid at 7,92 to the dollar from 7,84 when the JSE closed on Monday, while gold was quoted at $884,45 a troy ounce from $895,65/oz at the JSE’s last close.
Traders said the crude oil price needed to retreat all the way to $100/barrel to ease growing concerns about global inflation after United States Federal Reserve chairperson Ben Bernanke hinted that his next monetary policy direction will be to raise interest rates.
In his speech in Boston, Bernanke said recent energy price gains had raised inflation risks and that the Fed “will strongly resist” any erosion in long-term expectations for prices.
“Commodity prices are at artificial levels right now. They need to correct by about 20% for me to be a buyer again,” one trader said.
On the resource index, Anglo American was off R2,39 to R513 and BHP Billiton was down R8,19, or 2,78%, to R286.
Sasol fell R6,43, or 1,35%, to R469,01.
Gold miner AngloGold Ashanti was down R6,32, or 2,29%, to R269,67, Gold Fields tumbled R2,15, or 2,17%, to R97,05 and Harmony dropped R3,90, or 4,03%, to R92,90.
Among platinum miners, AngloPlat was down R3,96 at R1 335,04 and Impala Platinum shed R3 to R307.
Industrial giant Barloworld gave up R1,79, or 1,99%, to R88,21, services group Bidvest was down R1,39, or 1,28%, to R107,50 and luxury goods group Richemont was 98 cents, or 2,02%, lower at R47,52.
Brewer SABMiller dropped R4,05, or 2,05%, to R193,25. It said earlier that it had agreed to buy Russian Brewer LLC Vladpivo for about $69-million.
Among banks and financials, Standard Bank dipped R2,29, or 2,81%, to R79,10, FirstRand slipped 35 cents, or 2,47%, to R13,83, Nedbank lost R3,09, or 3,24%, to R92,21 and Absa weakened R3,25, or 3,72%, to R84,05.
Life insurer Old Mutual was down 18 cents, or 1,04%, to R17,10 and Sanlam sank 30 cents, or 1,59%, to R18,60.
Also in the news, tile maker Ceramic Industries was 50 cents weaker at R79,50. It said earlier that it would sell a 10% stake to staff, empowerment partners and community organisations in a black economic empowerment deal. — I-Net Bridge