The JSE wobbled between weakness and strength in morning trade and was in the red at noon on Wednesday, driven mainly by mining stocks that are still trying to find some stability in a volatile market.
“There is buying in some banks. The market, however, will still continue to be at the mercy of overseas stocks,” a local trader said.
At noon, the all-share index was 0,63% lower. Resources were down 0,91%. Gold and platinum shares were down 1,12% and 1,97% respectively. Industrials lost 0,49% and financials gave up 0,34%, while banks were down 0,04%.
The rand was at 8,01 from 7,93 when the JSE closed on Tuesday, while gold was last quoted at $775,87 a troy ounce from $781,02 at the JSE’s last close.
Platinum was trading at $1 207,50/oz, from the previous close of $1 254/oz. Brent crude was at $100,67 per barrel, from its previous close of $101,69.
“The interest-rate-sensitive stocks still remain in favour at the moment but there is still fear that interest rates may go up,” added the trader.
Dow Jones Newswires reports that the FTSE 100 lost 0,2% to 5 405, coming off lows, but still in the red. The UK’s July trade deficit is slightly better than expected. Sentiment is still dented, with concern over the future of investment bank Lehman Brothers sending banks lower.
The newswire quotes a trader saying: “All the conditions that existed before the Fannie Mae/Freddie Mac bail-out on Sunday are still alive and well today [Wednesday].”
On the JSE, Anglo American remained unchanged at R309,50 and BHP Billiton was down R2,57, or 1,32%, to R191,93.
Sasol gave up R2,30 to R345.
Gold miner AngloGold Ashanti shed R1,43 to R174,01, while Goldfields lost 95 cents, or 1,61%, to R58.
Platinum miner AngloPlat eased R24, or 3,01%, to R773 and Impala Platinum dipped R1,99, or 1,03%, to R192.
Elsewhere on the JSE, Old Mutual gave up 36 cents, or 2,55%, to R13,74. This is after the financial-services group’s shares lost more than 6% in early trade after it announced the resignation of chief executive Jim Sutcliffe, as well as an expected $135-million write-down on Fannie and Freddie exposure.
Sanlam inched up two cents to R18,32.
Among industrials, brewer SABMiller was up 79 cents to R169,79 while consumer food brands maker Tiger Brands lost 85 cents to R144,10.
Richemont lost R1,04, or 2,31%, to R43,96. Earlier in the day the Swiss-based luxury goods group said that for the five-month period to end August, cumulative sales across all of its business areas grew by 11% at actual rates or 18% at constant exchange rates.
Among banks, Standard Bank lost 18 cents to R92,70, Absa was down R1,40, or 1,22%, to R113,10, while Nedbank gained R1,76, or 1,70% to R105,46.
MTN group lost 76 cents to R117,60 and Telkom gave up R1,67, or 1,27%, to R129,33. — I-Net Bridge