The JSE continued to lose momentum in morning trade on Monday and was deep into the red by noon, still moving in line with weak global markets.
At 11.56am, the JSE’s all-share index had fallen 3,28%, weighed down by platinum stocks, which fell 6,61%, and resources, which lost 5,23%. However, gold miners were up 3,50%.
Banks came down 3,86% and financials gave up 2,85%, while industrials were down 1,64%.
The rand was bid at 11,22 to the dollar from 10,98 when the JSE closed on Friday, while gold was last quoted at $714,50 a troy ounce from $726,15/oz at the JSE’s last close. Platinum was at $756/oz, down 4,97% from Friday’s close of $795,50/oz. Brent crude was at $59,56 from its previous close of $62,05.
The local bourse opened 0,73% stronger but, as predicted by traders, it gave up strength and slipped into negative territory in early trade as the JSE continued to take direction from weaker global markets.
Asian stocks were sharply weaker after Wall Street closed more than 3% lower on Friday, and European stocks have also posted strong losses.
“The JSE is in the red, but not as deep in the red as some of the global markets,” a local equities trader said.
“There is still a lot of negativity. The amount of selling is putting markets under pressure,” said the trader.
He added that after taking a major knock last week, gold stocks have firmed as buyers start perceiving them as once again being a “safe haven”.
Dow Jones Newswires reports that European stocks stay pinned deep in negative territory amid growing recession worries. German business sentiment data also does little to improve overall mood.
The FTSE was last down 4,74% and other European shares were also much lower, with United States stock futures pointing to another day of heavy losses on Wall Street.
US stocks are seen sliding at the open as recession fears continue to plague investor sentiment.
Earlier in Asia, Hong Kong’s Hang Seng Index ended down 12,7% — its lowest closing level since May 2004 — and in Tokyo, the Nikkei gave up 6,36%.
On the JSE, Anglo American was down R15,40, or 7,44%, to R191,65 and BHP Billiton lost R7,73, or 5,37%, to R136,10.
Paper and packaging group Mondi gave up R2,50, or 6,36%, to R36,80 and Sappi shed R1,14, or 2,07%, to R53,86.
ArcelorMittal gave up R8,50, or 9,88%, to R77,50 and Highveld Steel lost R1,84, or 2,99%, to R59,80.
Petrochemical giant Sasol fell R18,55, or 7,57%, to R226,50.
Among gold miners, AngloGold added R3,97, or 2,48%, to R163,97, Gold Fields was up R3,11, or 5,76%, to R57,11 and Harmony firmed R3,50, or 5,30%, to R69,50.
Platinum miner Anglo Platinum fell R23,01, or 5,88%, to R367,99, Impala Platinum declined R6,15, or 6,40%, to R90.
Among other miners Exxaro gave up R4,25, or 7,94%, to R49,25 and African Rainbow lost R6,90, or 6,91%, to R93.
Elsewhere on the JSE, brewer SABMiller was down R2,03, or 1,46%, to R136,97, Bidvest lost R8,05, or 8,58%, to R85,75 and Barloworld came down R1,67, or 3,49%, to R46,23.
Famous Brands was unchanged at R12. The company earlier reported a 7% increase in diluted headline earnings per share to 78 cents for the six months ended August from 73 cents a year ago.
An interim dividend of 36 cents was declared, up 9% from the previous year.
Among bankers First Rand was down 56 cents, or 4,61%, to R11,59, Standard Bank shed R3,25, or 4,46%, to R69,65 and Absa fell R2,20, or 2,56%, to R83,80.
Investec lost R2,52, or 5,73%, to R41,48 and RMB Holdings was down R1,39, or 6,98%, to R18,51.
Among retailers Steinhof was down 90 cents, or 6,92%, to R12,10, Truworths fell R1,30, or 5,10%, to R24,20 and Foschini lost R1,26, or 4,10%, to R29,45.
Shoprite lost 15 cents to R44,23. Earlier the group advised that sales for the three months ended September rose by 25,9%, identical to the rate of growth recorded in the same period last year.
Among telecommunication groups, MTN Group was up R3,55, or 4,80%, to R77,55 but Telkom was down R2,56, or 2,72%, to R91,44. — I-Net Bridge