South African stocks sank deeper into the red by noon on Thursday with precious metal stocks and resources still leading the downside and market players taking profits for the second consecutive session.
By 11.55am, the JSE all-share index had fallen 2,23%, with resources giving up 3,12%, gold miners losing 3,43% and platinum counters shedding 5,26%.
Banks weakened 2,44%, financials gave up 1,52% and industrials were off 1,60%.
The rand was last bid at 9,61 to the dollar, from 9,39 when the JSE closed on Wednesday, while gold was last quoted at $841,88 a troy ounce from $852,77/oz at the JSE’s last close.
Platinum was at $989/oz from its previous close of $969,50/oz.
“We are tracking international markets after the Dow fell yesterday on the back of the bad news out of there last night,” a local trader said.
“There is still profit taking after the good gains we had at the end of December.
“The rand is weaker and is cushioning our falls,” the trader said.
“Precious metal shares predicted higher prices and that is why they rallied the last few days. Now there is just profit taking.”
On the JSE, resource giant Anglo American was down R5,51, or 2,26%, to R237,94 and BHP Billiton weakened R5,15, or 2,67%, to R187,90.
Petrochemicals giant Sasol shed R10,93, or 3,50%, to R301,57.
Paper group Sappi weakened R1, or 2,23%, to R43,80 but Mondi added 49 cents, or 1,37%, to R36,19.
ArcelorMittal shed R2,72, or 2,83%, to R93,28 and Highveld Steel was off R1, or 1,54%, to R64. Among gold miners, AngloGold Ashanti dropped R10,51, or 4,13%, to R244, Gold Fields was down R3,41, or 3,70%, to R88,64 and Harmony weakened R1,70, or 1,68%, to R99,30.
Platinum miner Anglo Platinum shed R29,75, or 5%, to R565,25, Impala Platinum fell R8,50, or 5,63%, to R142,50 and Lonmin gave up R4,10, or 2,60%, to R153,40.
In diversified miners, African Rainbow was off R4,20, or 3,37%, to R120,50 and Exxaro lost R1,75, or 2,36%, to R72,50.
Zambia Copper Investments was unchanged at R10,50. The group earlier reported a 98% fall in its interim headline earnings following the sale of its primary asset, a 28,4% holding in KCM Copper Mines. It sold the stake to India’s Vendanta Resources in April after a bitter dispute over the value of the asset. While the proceeds of the sale skewed finance income, which came in at $2,7-million for the six months to September 2008 from $221 000 for the same six months of 2007, the company’s profit
for the period fell 98% to $698 000 from $32,6-million.
The group also warned that its JSE listing faces suspension.
It became a cash shell after the sale of KCM, and while it has completed a share buyback, thereby halving its shareholder base, it has yet to produce
a new business plan or make further investments.
ZCI chairperson Thomas Kamwendo said as a pure cash shell without any significant investments, the company’s continued listing on the JSE and by
extension on the Euronext in Paris, was dependent on the JSE listings requirements and deadlines imposed by the South African exchange.
Elsewhere on the JSE, brewer SABMiller added R1,92, or 1,16%, to R166,92 and British American Tobacco was up R5,92, or 2,39%, to R253,92.
However, Barloworld was off 50 cents, or 1,10%, to R45, Remgro lost R2,95, or 3,88%, to R73,05 and Bidvest weakened R1,64, or 1,57%, to R102,50.
Among banks Standard Bank was off R3,01, or 3,54%, to R81,99, Nedbank weakened R1,99, or 2,05%, to R95 and FirstRand was off 28 cents, or 1,77%, to R15,57.
Financial services group Old Mutual lost 10 cents, or 1,20%, to R8,25 and RMB Holdings was down 55 cents, or 2,20%, to R24,45.
Media group Naspers gave up R8,86, or 5,52%, to R151,64 and Avusa lost 25 cents, or 1,37%, to R18,01.
Among retailers, Truworths lost R1,62, or 4,43%, to R34,98, Massmart weakened R3,67, or 4,24%, to R82,96 and Shoprite was off R2,35, or 4,15%, to R54,22.
Construction group Group Five gave up R1,51, or 4,12%, to R35,16 and cement manufacturer Pretoria Portland Cement lost 59 cents, or 1,97%, to R29,41.
MTN Group shed R3,48, or 3,11%, to R108,52 and Telkom weakened R1,29, or 1,13%, to R113,21. – I-Net Bridge