The JSE sank deeper into the red by noon on Friday, still following the direction of weaker European markets.
Traders say markets are under pressure as market players are anticipating that US markets will open weaker.
“There is still a lot of negative sentiment in the market,” said a local trader.
Earlier in the day traders pointed out that there are still some concerns about the extent of the US credit crisis.
At noon, the all-share index was 1,51% lower, with resources down 2,30%; platinum miners fell 3,92% and gold stocks were 2,73% lower.
Industrials were down 0,98%, financials lost 0,52% and banks shed 0,51%.
The rand was bid at 8,14 to the dollar from 8,11 when the JSE closed on Thursday, while gold was last quoted at $871,30 a troy ounce from $867,65 when the JSE closed on Thursday.
Platinum was trading at $1 147.50/oz, from a previous close of $1 172.50/oz.
Brent crude was at $101,84 per barrel, from its previous close of $104,60 per barrel.
Dow Jones Newswires reports that the FTSE 100 lost 1,5% at 5117,1, staying well in negative territory on Friday as optimism over completion of the US Treasury’s bailout plan subsides. “With the discussions in Washington on a knife edge it would take either a brave, or a foolhardy trader to go
into the close with a significant open risk on board,” says Simon Denham, head of Capital Spreads in London. Mining stocks are doing particularly badly on the back of a slump in gold overnight and weaker base metals.
Eurasian Natural Resources lost 6,1% and Xstrata fell 4,6%.
In local markets, Anglo American was down R7,40, or 2,39%, to R301,60 with rival BHP Billiton losing R5,33, or 2,48%, to R209,67.
Sasol gave up R1,49 to R356,50.
Gold miner AngloGold was down R6,41, or 3,24%, to R191,59, Gold Fields lost R2,10, or 2,66%, to R76,80 and Harmony was down R1,49, or 1,78%, to R82.
Among platinum miners Lonmin fell R26,63, or 6,52%, to R381,62, Impala Platinum was down R5,55, or 3,27%, to R164,40 and Anglo Platinum plummeted R37, or 4,63%, to R763.
Among other miners African Rainbow lost R3, or 1,69%, to R174. Exxaro lost R3,50, or 3,76%, to R89,50 and Hulamin lost 49 cents, or 2,49%, to R19,21.
Financial services group Old Mutual lost 31 cents, or 2,44%, to R12,37 while Sanlam was up nine cents to R17,49.
Among banks, Standard Bank fell 94 cents, or 1,06%, to R87,96, Nedbank was down 90 cents to R101,10, and Absa lost 20 cents to R109,40.
Among industrials, brewer SABMiller shed R4,83, or 2,83%, to R165,67, Swiss luxury goods group Richemont was down 95 cents, or 2,39%, to R38,85 while Barloworld was up R1,02, or 1,62%, to R64,02 and Imperial gained R1, or 1,60%, to R63,50.
Elsewhere on the JSE, telecommunications group MTN was down R1,80, or 1,65%, to R107,20 while Telkom fell R1,40, or 1,28%, to R108,20.
Poultry producer Sovereign Foods lost eight cents, or 1,46%, to R5,40. Earlier in the day the group this morning reported a diluted headline loss of R102,9 cents per share for the six months to August compared with diluted headline earnings per share of 104,7 cents a year ago. Group revenue was up 28% at R365,2-million. – I-Net Bridge