After opening in the positive on Friday, the JSE during morning trade slipped back into the red as United States stock futures continued to slide in a volatile and uncertain market.
The local bourse seemed to be taking direction from the negative sentiment coming out of the US markets.
The JSE opened 1,5%, or 301 points, higher but slipped and by noon was displaying losses of more than 2%.
“Local markets are under pressure because of the lower US futures,” a trader said. “The markets are still very volatile and it’s still quite difficult to say which way they will go.”
At 11.59am, the JSE’s all-share index had lost 2,15%. Resources lost 1,79%, platinum miners fell by 5,66% and gold stocks shed 2,01%.
Industrials were 2,05% lower, banks came down 2,51% and financials were off 2,75%.
The rand continued to weaken and was bid at R10,39 to the dollar from R10,47 when the JSE closed on Thursday, while gold was last quoted at $799,55 a troy ounce from $797,35/oz at the JSE’s last close. Platinum was at $869/oz, down 0,85% from its overnight close of $884,50/oz.
Dow Jones reports that London shares moved higher on Friday morning, paced by oil producers and banks, with the move adding to a week of sharp volatility. The British FTSE 100 index rose by 133,29 points, or 3,5%, to 3 996,17. Other European shares advanced as well.
The roller-coaster ride in markets looked set to continue on Friday, with US stock futures pointing to a sharply lower start after the big push made in the last session.
S&P 500 futures dropped by 27,4 points to 913,60 and Nasdaq 100 futures dropped by 40,5 points to 1 282,5. Dow industrial futures dropped 243 points.
On Thursday, US stocks closed with big gains, as initial losses on data releases showing drops in factory output were reversed by bargain hunters at the close.
The DJIA climbed by 401 points, the Nasdaq Composite rose by 89 points and the S&P 500 added 38 points.
US stocks were expected to fall at the open as traders took profits from Thursday’s rally with expectations that the colossal swings would continue, said Martin Slaney, head of derivatives at GFT Global Markets.
The DJIA was called to open down 136 points at 8 843 and the S&P 500 down 18,6 at 927,83.
“US housing starts data [12.30pm GMT] and consumer confidence figures [1.55pm GMT] are likely to signal that the economy is continuing to erode. The housing market is seen as the root of all evil, and there remains little scope for optimism,” Slaney said.
In local markets, resource giant Anglo American was down R2 to R207,99 and BHP Billiton lost R5,20, or 3,53%, to R142.
Sasol fell R2,44 to R243,56.
Among gold miners, Gold Fields gave up R2,01, or 2,79%, to R69,99 and Harmony was down R3,90, or 4,29%, to R87,10.
Platinum miner Anglo Platinum dropped R38,85, or 7,08%, to R510,15, Impala Platinum came down R7, or 5,65%, to R117 and Lonmin gave up R11,35, or 5,02%, to R214,65.
Among industrials, brewer SABMiller was down R2,60, or 1,67%, to R153,25, Bidvest lost R5,50, or 5,67%, to R91,50 and Barloworld shed R3,32, or 5,91%, to R52,88.
Banker Standard Bank was down R1,30, or 1,68%, to R76,21, Nedbank gave up R3,47, or 3,94%, to R84,53, and FirstRand was off 51 cents, or 3,55%, to R13,87.
Financial group Old Mutual fell 70 cents, or 7,29%, to R8,90 and Sanlam lost 89 cents, or 5,39%, to R15,61.
Telecommunications group MTN Group was down R1,72, or 1,79%, to R94,28 while Telkom came off R6,10, or 5,65%, to R101,80. — I-Net Bridge