The JSE slipped into weaker territory by noon on Wednesday as negative sentiment seeped back and weighed on global markets. The local bourse reverted to taking direction from weaker Asian markets, which lost momentum in the wake of a weaker close in the Dow overnight.
Earlier, the local bourse was firmer, supported by impressive gains in resources and platinum stocks.
By noon, the JSE’s all-share index had fallen 1,46%, led down by resources, which had lost 2,17% and gold miners, which gave up 1,37%.
However, platinum stocks edged up 0,87%. Banks were 0,66% weaker, financials lost 1,13% and industrials shed 0,82%.
The rand was last bid at 10,44 to the dollar from 10,24 when the JSE closed on Tuesday, while gold was last quoted at $730,75 a troy ounce from $733,67/oz at the JSE’s last close.
The platinum price was at $831/oz, up 2,28% from its previous close of $812,50/oz and Brent crude was at $54,57 from $55,71 before.
“We saw a spike earlier today [Wednesday] that was just because markets were recovering from yesterday’s losses. Resources were up on the back of the rand,” a local trader said.
“Now we see that the negative sentiment in global markets has seeped back in and locally we are moving in line with that,” he said. “Locally we saw also that retail sales are down and that can’t be helping market sentiment at all,” he added.
Dow Jones Newswires reports that European stock bourses have turned negative Wednesday, and United States stock futures are also in the red. This is impacting on the carry trades as risk aversion rises.
In London, the FTSE 100 was last down 0,38%.
Earlier the Nikkei closed down 1,29% and the Hang Seng was down 1,9%.
Here at home, resources giant Anglo American was off R6,76, or 3,04%, to R215,50 and BHP Billiton gave up R3,55, or 2,18%, to R159,40.
Sasol lost R7,02, or 2,64%, to R258,99.
Kumba Iron Ore lost R3,40, or 2,51%, to R132 and Highveld Steel was down 98 cents, or 1,56%, to R62.
Among gold miners Goldfield shed R1,98, or 2,98%, to R64,51 and Harmony gave up R1,36, or 2%, to R66,64.
Platinum miner Impala Platinum was up R2,40, or 2,14%, to R114,40 but Lonmin fell R4,90, or 2,93%, to R162,59.
Elsewhere on the JSE, brewer SABMiller lost R1,10 to R144,47, Imperial lost R1,50, or 2,97%, to R49 and Barloworld was down R1,60, or 2,94%, to R52,90.
However, British American Tobacco added R5,24, or 2%, to R267.
Banker FirstRand was down 20 cents, or 1,44%, to R13,65 and Nedbank edged down 84 cents to R85,26.
Among retailers Spar was off 52 cents, or 1,01%, to R51. The group earlier reported a 29,9% increase in headline earnings per share from 312,3 cents to R405,7 cents per share for the 12 months ended September. The attributable profit for the period was up 30.3% to R681,6-million.
Mr Price was barely changed to R22,70. The group earlier reported an 11% increase in diluted headline earnings per share to 86 cents for the six months ended September from 77,5 cents a year ago.
Nu Clicks gave up 45 cents, or 3%, to R14,55.
Among construction groups Aveng shed R1,80, or 5,02%, to R34,05, Group Five lost R1,24, or 3,57%, to R33,50 and Murray & Roberts was down R1,96, or 3,54%, to R53,45.
Telecommunications group MTN Group was off R4, or 3,60%, to R107 and Telkom was down R1,75, or 1,61%, to R107.
IT company Dimension Data edged down six cents, or 1,19%, to R5. The company earlier reported that its earnings per share before exceptional items for the full year to September 30 had increased to 7,4 US cents from a previous 5,6 cents. Earnings per share were reported up by 28,3% to 7,7 US cents. — I-Net Bridge