The JSE remained weak on Friday morning on profit taking and weaker precious metal prices as Asian and European markets also came under pressure despite the more than 2% gain in the Dow overnight.
By 12.02pm, the JSE’s all-share index had fallen 1,75%, weighed by platinum miners, which were off 4,23%, resources which gave up 3,57% and gold stocks, which lost 1,57%.
Financials were down 2,27% and banks lost 1,97%. However, industrials were up 0,21%.
The rand was bid at 9,98 to the dollar from 9,96 when the JSE closed on Thursday, while gold was last quoted at $726,68 a troy ounce from $755,48/oz at the JSE’s last close.
The platinum price was at $799/oz, falling 2,20% from Thursday’s close of $817/oz. Brent crude was at $61,01 from its previous close of $63,71.
Markets in Asia ignored the over 2% gain on Wall Street and reacted to the decision to cut interest rates. Japan’s Nikkei gave up 5% after the Bank of Japan cut interest rates by less than what was expected. European markets were subsequently lower.
“Markets are still down on profit taking ahead of the weekend,” a local trader said.
“It seems as though the markets are stalling and traders are taking profits ahead of the weekend,” said the trader.
“There is nothing much to read into these falls, they are not too surprising. It was expected after the recent rallies,” he explained.
The trader noted however that there does seem to be some buying in certain stocks.
“The likes of Murray & Roberts, Naspers, Telkom and TigerBrands are up,” he said.
“However there is still a lot of volatility in the market.”
In the UK, the FTSE 100 index was last down 1,60%. Other European shares were also lower, as were Asian shares and US stock futures as this week’s interest-rate cut inspired rally ran out of steam, Dow Jones Newswires reports.
US stocks are expected to open lower, dragged down by weaker markets in Europe and Asia as well as a bit of month-end profit taking, says Martin Slaney, trader at GFT Global Markets.
He calls the DJIA to open down 100 points at 9 080,69, and the S&P 500 down 10,8 at 943,3.
On the JSE, resources giant Anglo American was down R11,63, or 4,90%, to R225,87 and BHP Billiton lost R6,79, or 4,05%, to R161,05.
Petrochemical giant Sasol gave up R4,25, or 1,51%, to R278.
Highveld Steel edged up 75 cents, or 1,27%, to R60 and Kumba Iron Ore was up R1 to R128.
Gold miner Harmony came off R3,69, or 4,78%, to R73,57 and Goldfields was down R1,69, or 2,41%, to R68,36.
However, AngloGold Ashanti gained R1 to R181.
Among platinum miner Anglo Platinum fell R18,20, or 4,35%, to R399,80, Impala Platinum gave up R5,80, or 5,30%, to R103,70 and Lonmin gave up R5,71, or 3,09%, to R178,89.
African Rainbow was down R9,50, or 8,72%, to R99,50 while Exxaro was up R2, or 3,23%, to R64.
Among industrials, brewer SABMiller was down R2,56, or 1,65%, to R153 and British American Tobacco was off R8,81, or 3,15%, to R271,18.
However Tiger Brands was up R2,92, or 2,23%, to R133,92 and Bidvest added R2,87, or 2,87%, to R102,87.
Among bankers Standard Bank was down R1,91, or 2,47%, to R75,39, Absa lost R2,04, or 2,06%, to R96,96 and Nedbank fell R3,13, or 3,29%, to R92.
Construction group Aveng was off 87 cents, or 1,93%, to R44,23 but Murray & Roberts added R1,60, or 2,45%, to R67.
Telecommunications group Telkom was up R1,29, or 1,22%, to R107,41 and MTN Group added R1,50, or 1,46%, to R103,90. – I-Net Bridge