The JSE sank deeper into the red by noon on Monday as a result of resource and gold stocks coming under pressure as a lack of market confidence and recession fears continued to
impact on bourses around the world.
The local bourse followed Asian markets lower after they fell in reaction to a nearly 4% decline on Wall Street on Friday.
By 11.59am, the JSE’s all-share index had fallen 3,35%, with the downside being led by resources which lost 5,13% and gold stocks which had shed
3,87%. However, platinum miners edged up 0,26%. Banks were off 2,36%, financials fell 1,90% and industrials gave up 2,34%.
The rand was last bid at 10,05 to the dollar from 9,99 rand when the JSE closed on Friday, while gold was last quoted at $746,30 a troy ounce from $744,05/oz at the JSE’s last close.
The platinum price was at $850,50/oz from its previous close of $830,50/oz and Brent crude was at $53,50 from $54,24 before.
“Resources and gold stocks are leading the downside. It does however seem like there is a bit of buying coming into the market,” a local trader said.
“There is still some uncertainty out there and market participants will have to wait and see what unfolds in the next day or two,” he added, pointing out that the locally markets will still watch what happens abroad.
Dow Jones Newswires reports that European stocks were a little lower on Monday as investors exhibited caution while absorbing the outcome of the weekend’s Group of Twenty meeting as well as news that Japan has become the latest economy to fall into recession.
On the JSE, resources giant Anglo American fell R13,27, or 6,50%, to R190,90 and BHP Billiton gave up R9,34, or 6,49%, to R134,53.
Sasol lost R12,99, or 5,20%, to R237.
Paper and packaging group Sappi plummetted R23,70, or 38,85%, to R37,30 and Mondi gave up R2,17, or 6,72%, to R30,13.
ArcelorMittal was down R4,02, or 5,74%, to R65,98, and Kumba Iron Ore shed R8,10, or 5,68%, to R134,50 and Highveld Steel lost R1,67, or 2,82%, to R57,50.
Gold miner AngloGold Ashanti weakened R11, or 6,15%, to R168, Harmony lost R3,56, or 5,33%, to R63,19. However, Goldfields edged up four cents to R64,54.
Among platinum miners Anglo Platinum was down R4,93, or 1,10%, to R445 but Impala Platinum added 86 cents to R114,11 and Lonmin was up R1,85, or 1,30%, to R143,71.
SABMiller lost R4,55, or 3,09%, to R142,75, Imperial was off 79 cents, or 1,59%, to R49. Tiger Brands fell R5,76, or 4,20%, to R131,24. The food group said earlier that it is considering making a cash and share offer for AVI of R24 per share, implying a total equity value for AVI of R8-billion.
This represents a 62% premium to AVI’s share price and to the 30-day volume weighted average trading price.
Barloworld edged down 49 cents, or 1,01%, to R48. The brands management group earlier reported headline earnings per share from continuing operations of 760,2 cents for the year ended in September, up 13%from 672 cents a year ago. Diluted HEPS from continuing operations rose to 750,4 cents from 659,7 cents before. The HEPS from continuing operations excludes the BEE charge (net of tax).
Standard Bank was off R2,02, or 2,70%, to R72,73. Nedbank gave up 95 cents, or 1,11%, to R85, Absa lost R1,05, or 1,15%, to R90,05and First Rand gave up 40 cents, or 2,88%, to R13,50.
Financial services group Old Mutual was off 17 cents, or 2%, to R8,33, African Bank gave up R1,02 rand, or 4,11%, to R23,78 and RMB Holdings shed 87 cents, or 3,78%, to R22,13.
Woolworths was down 35 cents, or 3,03%, to R11,20 and furniture group JD Group lost 99 cents, or 3,9%, to R28,23. The group reported a 51% decline in diluted headline earnings per share from 609,8
cents to 298.3 cents for the year ended
Among construction groups Group Five weakened R1,70, or 6,03%, to R26,50, Murray & Roberts lost R3,42, or 7,12%, to R44,58 and Pretoria Portland Cement shed R1,15, or 3,98%, to R27,72.
Telecommunications group MTN Group gave up R2,79, or 2,51%, to R108,20 and Telkom was down R1 to R110. The group earlier reported headline earnings per share of 745,2 cents for the six months ended September — up 0,4% from 742,3 cents a year ago. – I-Net Bridge