The JSE remained in the red by noon on Wednesday, still moving in line with international markets, which began to fall after the Dow lost more than 2,5% overnight followed by falls in Asian and European markets on Wednesday morning.
Among sectors that weighed on the local bourse were resources and platinum, which had both lost more than 5% by noon.
The JSE opened 2,54% lower and within minutes had extended its losses to more than 3,5%.
Traders maintained that the market was down on poor sentiment from abroad.
At noon, the JSE’s all-share index was 3,73% weaker as platinum stocks shed 5,7% and resources lost 5,51%. Banks came down 3,67% and financials fell 3,58%. Gold miners gave up 2,80% and industrials were down 1,95%.
The rand was bid at R10,88 to the dollar from R10,55 when the JSE closed on Tuesday, while gold was last quoted at $757,13 a troy ounce from $771,25/oz at the JSE’s last close. Platinum was at $852/oz, falling 3,78% from Tuesday’s close of $885,50/oz. Brent crude was at $67,22 from its previous close of $69,72.
“Global markets are down, the JSE is just moving in line with those,” a local trader said.
He added that the rand, which was very volatile and weak, was not doing much for the local bourse.
The rand earlier in the day was trading at its worst level since the end of April 2002, according to I-Net Bridge data.
Dow Jones reports that the FTSE 100 fell by 3% to 4 101,29, near the session low of 4 096,1, falling deeper into the red as recessionary fears take hold.
“This is a market driven by sentiment,” said one trader, while another noted United States futures are sliding.
The mining sector was one of the worst performers as metal prices soften, with Vedanta losing 11% and Kazakhmys down 10%.
Other European shares declined, while US stock futures pointed to an uncertain start on Wall Street a day after worries about earnings and the economy pressured stocks to a downbeat close.
US stocks were expected to fall at the open on Wednesday over concerns that corporate earnings would disappoint, said Martin Slaney, trader at GFT Global Markets.
He called the DJIA to open down 103 points at 8 930 and the S&P 500 down 10,5 at 944,5.
“Today we have some blue-chip household names reporting and traders are wary of buying into stocks ahead of these,” he said, adding that commodity stocks would see some pressure given the recession-fearing sell-off in the underlying commodities.
On the JSE, Anglo American fell R11,42, or 4,61%, to R236,51 and BHP Billiton gave up R12,10, or 6,93%, to R162,40.
Highveld Steel gave up R5,50, or 6,67%, to R77 while ArcelorMittal lost two rand, or 2,20%, to R89.
Sasol gave up R13, or 4,68%, to R265.
Paper and packaging group Mondi dropped R2,74, or 6,53%, to R39,25.
Among gold miners, AngloGold lost R5,03, or 2,42%, to R203,17, Gold Fields gave up R2,07, or 2,96%, to R67,94 and Harmony shed R2,88, or 3,58%, to R77,62.
Platinum miner Anglo Platinum lost R33,99, or 6,81%, to R465,01, Impala Platinum came down R5,82, or 4,93%, to R112,19 and Lonmin fell R16,02, or 6,82%, to R219.
In other miners, African Rainbow was down R5,97, or 4,12%, to R139,03 and Exxaro lost R1,90, or 2,96%, to R62,30.
Among industrials, brewer SABMiller was down R4,48, or 2,68%, to R162,96 and Bidvest fell R3,90, or 3,90%, to R96,10.
Among bankers, Absa fell R5,87, or 6,50%, to R84,38, Standard Bank came down R3,46, or 4,62%, to R71,44, Nedbank shed R2,56, or 3,03%, to R81,94 and FirstRand was down 17 cents, or 1,31%, to R112,77.
Among telecommunications groups, MTN Group fell R3,28, or 3,40%, to R93,22 and Telkom was down R3,53, or 3,35%, to R101,97.
In the news, investment holding company Reinet was down R1,50, or 7,89%, to R17,50.
It was announced on Wednesday that private hospitals group Netcare Limited had been removed from the JSE’s blue-chip index to make way for Reinet Investments. Netcare will be added to the mid-cap index, replacing junior miner Simmer and Jack, which moves to the small-cap index.
Staffing solutions and BPO services provider Adcorp Holdings was unchanged at R23. The group reported 125,5 cents in diluted headline earnings per share for the interim period to August compared with 37,7 cents the same time a year ago. An interim dividend of 62 cents was declared, up 13% on the same period last year. Revenue rose to R2,2-billion from R1,7-billion and normalised operating profit increased to R106-million from an operating loss of R501 000. — I-Net Bridge