South African stocks drifted lower by midday on Monday, weighed by negative sentiment in overseas markets in what is expected to a choppy week due to a heavy line-up of global economic news and data.
By noon, the all-share index was down 0,15%. The gold mining index was off 1,99%, the platinum mining index fell 1,20% but resources inched up 0,20%.
Banks fell 1,74%, financials tumbled 1,77% and industrials eased 0,28%.
The rand was bid at 8,02 to the US dollar from 7,99 when the JSE closed on Friday, while gold was quoted at $903,55 a troy ounce from $903,97/oz
at the JSE’s last close.
After posting decent gains in early deals on a weaker rand, the local bourse had drifted into the red by mid-morning as it tracked weakening European markets, traders said.
“We are in for a volatile week. It’s a heavy week on the international front in terms of economics data,” a Johannesburg-based trader said.
All eyes are expected to be on the United States’s Federal Open Market Committee this week, which is slated to announce its interest rates decision on Wednesday. Most market players are expecting the Fed chief Ben Bernanke to take a tough stance on inflation.
Other economic data scheduled for release this week in the US include revised GDP, Existing & New Home Sales, Core PCE Index and Consumer Confidence & Sentiment.
Traders said commodity prices — a major input for the resource-heavy JSE — were unlikely to make any significant moves ahead of US interest rates decision.
On the resource index, Anglo American was up R8,84, or 1,64%, at R547,84 and BHP Billiton edged up 31 cents to R298,50.
Sasol climbed R9,29, or 2,06%, to R460,05.
Gold miner AngloGold Ashanti fell R6,45, or 2,69%, to R233,30, Gold Fields lost R1,52, or 1,73%, R86,50 and Harmony shed 98 cents, or 1,10%, to R87,72.
Elsewhere, industrial giant Barloworld weakened 52 cents to R82,48, Imperial Holdings eased 99 cents, or 1,89%, to R51,51 but brewer SABMiller strengthened 97 cents to R179,02.
Among banks and financials, Absa was down 88 cents, or 1,04%, to R83,50, Standard Bank sank R1,40, or 1,84%, to R74,60 while life insurer Old Mutual tumbled 50 cents, or 3,03%, to R15,99
and rival Sanlam lost 35 cents, or 2,02%, to R16,95. – I-Net Bridge