South African stocks remained in weak territory at noon on Tuesday in line with negative overseas sentiment as international markets continue to tumble amid the latest financial crisis in the United States.
Buyers continue to be wary of holding on to long-term stocks and are eyeing the US interest-rate decision later in the day, traders said.
“Local markets are still down but we have come off the low trading levels seen this morning [Tuesday],” a local trader said.
“Everyone at the moment is eyeing the US interest-rate decision, which may bring some change in the market,” said the trader.
The trader added that at the moment the market is likely to remain volatile and traders will take it day by day.
At 11.57am, the all-share index was 1,92% lower. Resources were down 3,21%. Gold stocks fell 2,07% while platinum stocks gave up 2,92%. Industrials were down 0,62% and financials lost 1,48%, while banks gave up 1,43%.
The rand weakened slightly and was bid at 8,14 to the dollar from 8,09 when the JSE closed on Monday, while gold was last quoted at $778,25 a troy ounce from $773,03 at the JSE’s last close.
Platinum was trading at $1 121/oz, from a previous close of $1 173,50/oz.
Brent crude was at $91,15 per barrel, slightly down from its previous close of $92,42 per barrel.
Dow Jones Newswires reports that US stock futures pointed to a sluggish start on Tuesday as the focus of the financial crisis shifted from Lehman Brothers to American International Group, with markets on alert for results from Goldman Sachs and a possible interest-rate cut from the US Federal Reserve.
S&P 500 futures slipped six-tenths of a point to 1 195,50 while Nasdaq 100 futures rose 4,75 points to 1 726. Dow industrial futures rose six points.
On the JSE, Anglo American lost R13,50, or 3,84%, to R338,50 and BHP Billiton was down R5,90, or 2,81%, to R204,20.
Sasol fell R14,50, or 4,14%, to R335,50.
Gold miner AngloGold Ashanti lost R4,09, or 2,12%, to R188,91, while Gold Fields was down R1,32, or 2,07%, to R62,51 and Harmony gave up R1,04 or 1,65% to R62,16.
Platinum miner Impala Platinum lost R8,01, or 4,35%, to R175,99, Lonmin fell R4,48, or 1,10%, to R401,80 and Angloplat lost R5 to R800.
Elsewhere on the JSE, Old Mutual lost 46 cents, or 3,45%, to R12,88 while Sanlam fell 62 cents, or 3,43%, to R17,48.
Among banks, Standard Bank gave up 85 cents to R87,15, Absa was down R1,31, or 1,23% to R105,44, while Nedbank lost R1,20, or 1,20%, to R99.
FirstRand was down 32 cents, or 1,93%, to R16,30. On Tuesday the financial-services group reported a 9% decline in headline earnings from R10,854-billion to R9,922-billion for the year ended June. This translated into diluted headline earnings per share of 184,3 cents, which were 5% lower than the 193,7 cents reported last year.
Among industrials, brewer SABMiller lost R4,15, or 2,34%, to R173,20. Barloworld was down R1,10, or 1,65%, at R65,50 while Bidvest gained 25 cents to R115,25.
Telecommunications group MTN group was up 30 cents to R116,90 while Telkom gave up R1 to R127.
Super Group lost 10 cents, or 2,99%, at R3,25. On Tuesday, the supply chain management group reported diluted headline earnings per share of 64 cents for the year ended June 2008 from 104,6 cents a year ago. HEPS were down 40% at 67,1 cents per share. Group revenue was 7% higher at R12,4-billion while operating profit declined to R720,5-million from R848,8-million before.
Also in the news, pharmaceutical group Aspen lost 75 cents, or 1,75%, to R43. The group announced that its subsidiary, Aspen Global, will acquire a further 1% and management control in Indian company Strides Arcolab’s Latin American operations. — I-Net Bridge