South African stocks came off the day’s lowest levels but remained in negative territory by midday on Thursday with precious metals counters leading the downside as prices continued to come under pressure on the back of the strong US dollar.
However, a muted response from resources helped limit the JSE’s downside.
The JSE all-share index had given up 0,79%, resources eased just 0,57%, platinum counters lost 2,07% and gold miners gave up 2,79%.
Banks were off 2,26%, financials weakened 1,79% and industrials eased 0,68%.
The rand was last bid at R10,15 to the dollar, from R10,14 when the JSE closed on Wednesday. Gold was quoted at $812,78 a troy ounce from $821,15/oz at the JSE’s last close, and platinum was at $909/oz from its previous close of $933/oz.
“There is no positive news out there,” a local trader said. “There are fresh fears about the global banking crisis and the worry is that the global economic recession could last longer than initially thought.”
“We are tracking international markets and resources and platinum counters are coming under a lot of pressure.”
“Dow futures have turned negative and we are likely to remain low for the rest of the day,” she added.
Dow Jones Newswires reports that European stocks remain weak after data from Eurostat confirms the euro zone’s annual inflation rate dropped to 1,6% in December 2008 from 2,1% in November 2008 — the first time it has fallen below the ECB’s target since August 2007.
Asian shares crumbled under heavy selling pressure with resource and financial stocks being hit the hardest on a retreat in commodity prices and a tumble on Wall Street overnight.
Japan’s Nikkei 225 finished down 4,9% and Hong Kong’s Hang Seng lost 3,4%.
Losses in London were also less pronounced, with the FTSE last down just 0,12%.
On the JSE, Anglo American was up R2,51, or 1,29%, to R196,95 and BHP Billiton (BIL) added R2,10, or 1,21%, to R175.
Petrochemicals giant Sasol fell R11,13, or 3,78%, to R283,57.
Highveld Steel shed R4,07, or 6,83%, to R55,50 and ArcelorMittal gave up R2,35, or 2,90%, to R78,65.
Among gold miners, AngloGold Ashanti weakened R5,11, or 2,10%, to R238,30, Gold Fields lost R3,70, or 4,34%, to R81,50 and Harmony was down R2,01, or 2,11%, to R93,24.
Platinum miner Anglo Platinum fell R9,80, or 1,99%, to R482 and Impala Platinum was down R2,70, or 2,21%, to R119,30.
However, Lonmin was up R2,20, or 1,75%, to R128.
In diversified miners, African Rainbow shed R1,15, or 1,14%, to R99,70 and Hulamin lost 15 cents, or 1,16%, to R12,80, but Exxaro was up R1,45, or 2,15%, to R68,75.
Brewer SABMiller collected R1,23 to R158,70. The group said earlier that lager volumes for the third quarter were 1% ahead of the prior year, and 2% ahead for the year-to-date.
On an organic basis, lager volumes for the third quarter declined 1%, and are in line with the prior year on a year-to-date basis.
Releasing its latest trading update for the quarter ended December 2008, the group said consumer demand has been affected by the current global economic slowdown, and has continued to weaken in many of the group’s markets.
Barloworld gave up R1,39, or 3,56%, to R37,61, Bidvest shed R4,11, or 3,97%, to R99,38 and Imperial weakened R2,16, or 3,63%, to R57,34.
However, Remgro was up 75 cents, or 1,02%, to R74,27.
Among banks, Standard Bank lost R2,05, or 2,46%, to R81,20, Nedbank gave up R1,74, or 1,76%, to R97,26, Absa shed R3,15, or 2,86%, to R107 and FirstRand Bank was off 50 cents, or 3,18%, to R15,20.
Financial services group Old Mutual lost 23 cents, or 2,77%, to R8,07 and Sanlam gave up 17 cents, or 1,02%, to R16,50.
Media group Avusa weakened 60 cents, or 3,23%, to R18 and Caxton was off R4,30, or 2,73%, to R153,20.
Retailer Truworths fell 85 cents, or 2,40%, to R34,60. The retailer said earlier that it anticipates that both basic and headline earnings per share for the 26-week trading period to December 28 2008 will be between 12% and 17% higher than those reported for the 27-week period to December 30 2007.
Woolies was down 41 cents, or 3,11%, to R12,79, Spar lost R1,39, or 2,45%, to R55,26 and Nu Clicks fell 54 cents, or 3,22%, to R16,22.
Construction group Aveng lost 95 cents, or 3,13%, to R29,40, Group Five was off R1,04, or 2,99%, to R33,70 and Murray & Roberts gave up R1,75, or 3,72%, to R45,25.
Cement group Pretoria Portland Cement weakened 59 cents, or 2,07%, to R27,86.
ICT group Datatec recovered its earlier sharp losses and was last down just 3 cents at R16,02.
Earlier the shares declined 9% after the group reported that trading in the first four months of the second half of the financial year has been “relatively resilient” when compared with the overall market conditions, albeit below the board’s prior expectations at the interim results published on October 15 2008.
Releasing its interim management statement, the group said revenues and gross profit margins have held up relatively well despite the sharp deterioration in economic activity in most markets.
“The board remains confident that Datatec is well positioned to deliver a satisfactory financial performance for the full year in the context of the current environment and expects the group to achieve revenues of approximately $4,3-billion for the financial year to February 28 2009,” the group said.
Datatec also said that it expects, based on current exchange rates, that earnings per share and headline earnings per share for the year ended February 2009 will be between 25 and 29 US cents compared with 45 US cents in 2008, and that underlying earnings per share will be between 31 and 35 US cents compared with 47 US cents in 2008.
Among telecommunications MTN eased six cents to R96 and Telkom was down R3,10, or 2,71%, to R111,40.
It was announced earlier that MTN SA and Neotel had signed a joint agreement to co-build the planned national long-distance fibre-optic network. The network will cover a distance of 5 000km, connecting the major centres across South Africa. — I-Net Bridge