The JSE retreated into negative territory by noon on Wednesday weighed by resources and continued concern over global economies.
By 12.01pm, the JSE all-share index had fallen 1,44%, with resources shedding 2,71%, platinum counters falling 2,92% and gold miners weakening
1,26%.
Banks were flat (up 0,01%), financials eased 0,29% and industrials edged down 0,74%.
The rand was last bid at 9,96 to the dollar when the JSE closed on Tuesday. Gold was quoted at $825,60 a troy ounce from $826,35/oz at the JSE’s last close and platinum was at $963/oz from its previous close of $941/oz.
“We are still not out of the woods,” an equities trader said.
“With earnings season in America and a lot of worry over company earnings, the volatility is back with us again. At the moment the market is stuck with no direction. We are just drifting. There is concern that things overseas, particularly in the US, are slow to pick up,” he said.
“Now that people are back at their desks, some have decided to take some money off the table. The market will need to consolidate before going forward,” he added.
Anglo American was down R7,66, or 3,65%, to R202 and BHP Billiton weakened R5,74, or 3,15%, to R176,50.
Petrochemicals giant Sasol lost R4,48, or 1,48%, to R298,02.
Paper group Sappi was off R1,70, or 4,30%, to R37,80 and Mondi was down 40 cents, or 1,14%, to R34,60.
Highveld Steel shed R2, or 3,23%, to R60 and Kumba Iron Ore gave up R1,54, or 1,05%, to R144,46.
Gold miner Gold Fields lost R1,60, or 1,87%, to R83,90 and Harmony weakened R1,60, or 1,65%, to R95,40.
Platinum miner Anglo Platinum fell R10,59, or 2,01%, to R516,91, Impala Platinum was off R4, or 3,10%, to R125 and Lonmin weakened R8,84, or 6,34%, to R130,66.
It was announced that Impala Platinum, Northam Platinum and Mvelaphanda Resources had called off their proposed merger. The companies earlier issued
a joint statement saying that the current global economic climate as well as the ongoing volatility in commodity and equity prices made it difficult for the parties to agree on exchange ratios.
Northam Platinum was down R1,95, or 7,65%, to R23,55. The miner earlier advised that its earnings and headline earnings per share would be between 39,7% and 49,7% lower in the six months to December 2008. It said in a statement to the JSE that its interim earnings and headline earnings per share are estimated to be between 100 and 120 cents.
This compares with the 199 cents per share reported for the same period a year ago.
Mvelaphanda was off R5,75, or 22,77%, at R19,50.
In diversified miners, African Rainbow shed R8,95, or 7,85%, to R105 and Exxaro was down R1,21, or 1,71%, to R69,74.
Among industrials, SABMiller gave up R3,22, or 1,99%, to R158,78 and British American Tobacco lost R2,29 to R258 and Barloworld weakened 55 cents, or 1,30%, to R41,80.
Standard Bank edged up 13 cents to R84,14 and the other banks were flat.
Sugar group Illovo added 78 cents, or 3,16%, to R25,48.
Media group Caxton was off 30 cents, or 2,50%, to R11,70 and Naspers lost R2,20, or 1,35%, to R160,50.
Among retailers Woolies was up 25 cents, or 1,90%, to R13,40 but Lewis lost 55 cents, or 1,13%, to R48 and Steinhoff gave up 35 cents, or 2,95%, to R11,50.
Mr Price added 89 cents, or 3,42%, to R26,89. The group earlier said that during the third quarter (October, November and December) of the financial year ending March 2009 it recorded sales growth of 20,3%, with December up 21,4%. Comparable sales, which include sales of expanded and relocated stores in like-for-like locations, grew by 15,3% (17,5% in December).
Construction group Murray & Roberts was down 88 cents, or 1,82%, to R47,52 and Aveng lost 45 cents, or 1,45%, to R30,65, but Group Five added 38 cents, or 1,08%, to R35,70.
Cement group Pretoria Portland Cement gained 79 cents, or 2,85%, to R28,50.
Telecommunications group MTN Group eased 60 cents to R100 but Telkom firmed R1,23, or 1,05%, to R118,23. – I-Net Bridge