Resources and weaker world markets kept the JSE in the red by noon on Wednesday as negative sentiment from a disappointing US stimulus package continued to weigh on global bourses. A recovery in gold stocks failed to push the local bourse into positive territory.
By noon, the JSE all-share index had given up 1,96%, with resources falling 2,42% and platinum miners easing 0,20%. However, gold miners gained 4,44%.
Banks were off 3,12%, financials gave up 2,48% and industrials lost 1,04%.
The rand was last bid at 9,88 to the dollar, from 9,67 when the JSE closed on Tuesday. Gold was quoted at $916,90/oz a troy ounce from $912,15/oz at the JSE’s last close, and platinum was at $1 043/oz from its previous close of US$1 032/oz.
“We are following the falls in world markets. Also, locally we had some big moves recently and now everyone is taking profits,” an equities trader said.
“The stimulus package gave no firm direction and there are still concerns about the state of the global financial system.
“People are running towards the gold market as some kind of safety. Gold shares are holding firmly on the back of that.”
He noted that the rand had weakened on the back of this global uncertainty with “risk averse investors pulling out of emerging markets”.
“It’s pretty quiet out there and everyone is waiting for the budget this afternoon,” he added.
Dow Jones Newswires reports that the FTSE 100 edged marginally lower following the release of the UK unemployment rate data which show a rise to a nine-year high in January.
The claimant count is smaller than market consensus estimates notes a trader. The trader added that he thought that the FTSE would remain in a tight range. Volumes are light as investors continue to display their disappointment in the lack of detail in the US financial rescue package, announced late on Tuesday.
The FTSE 100 was last down 0,29%.
US stocks are expected to open higher on a dead-cat bounce, following Tuesday’s steep sell-off, said Martin Slaney, trader at GFT Global Markets.
He called the DJIA to open up 52 points and S&P 500 up 5,8 points.
On the JSE, resources giant Anglo American lost R12,50, or 5,96%, to R197,10 and BHP Billiton was down R7,69, or 4,01%, to R184,31.
Petrochemicals group Sasol shed R10,40, or 3,62%, to R276,60.
Paper group Sappi weakened R1,48, or 4,95%, to R28,40 and rival Mondi lost 96 cents, or 3,31%, to R28,04.
ArcelorMittal was down R3,85, or 4,57%, to R80,40. The group earlier reported a 65% rise in headline earnings to R9,5-billion for the year ended December 2008 from R5,7-billion a year ago.
This translated into headline earnings per share of R21,20 from R12,84 a year ago. A final cash dividend of 365 cents per share was declared, up from 196 cents a year ago, bringing the total dividend payout for the year to 707 cents from 2007’s 429 cents.
The group said the substantial increase in headline earnings was on the back of higher global steel prices in early 2008, a significantly improved income contribution from the Coke & Chemicals business, and higher gains on foreign exchange transactions and financial instruments.
Highveld Steel was off R2, or 3,39% to R57 but Kumba Iron Ore was up R1,99, or 1,13%, to R177,99.
Among gold miners AngloGold Ashanti added R11,84, or 4,32%, to R285,90, Gold Fields collected R6,10, or 5,79%, to R111,50 and Harmony gained R3,40, or 3,02%, to R115,85.
Platinum miner Anglo Platinum fell R5, or 1,08%, to R460.
In diversified miners, African Rainbow weakened R3,38, or R2,66%, to R123,57 and Exxaro eased 50 cents to R72,50.
Among industrials, brewer SABMiller gave up R3,10, or 1,90%, to R160, Remgro weakened R1,49, or 1,99%, to R73,50 and British American Tobacco lost R2,85, or 1,07%, to R263.
Banker Standard Bank was off R2,18, or 2,84%, to R74,66, Nedbank lost R1,55, or 1,66%, to R91,70, Absa gave up R2,17, or 2,13%, to R99,70 and FirstRand weakened 60 cents, or 3,95%, to R14,60.
Old Mutual gave up 40 cents, or 4,62%, to R8,25, Investec weakened R1,84, or 4,60%, to R38,14, RMB Holdings shed 92 cents, or 3,83%, to R23,12 and African Bank was down 80 cents, or 2,83%, to R24,90.
Sugar group Illovo weakened 75 cents, or 2,92%, to R24,90.
Retailer Woolies was off 16 cents, or 1,16%, to R13,64, Truworths lost 43 cents, or 1,19%, to R35,57 and Massmart weakened fell R1,91, or 2,34%, to R79,59.
Spar Group added R1,03, or 1,89%, to R55,50. It earlier advised that it experienced a solid trading period for the quarter ended December 2008, with turnover growing 26,1% to R8,1-billion on the similar period in 2007. The group said it would release its financial results for the six months ending March 2009 on or about May 6.
Liberty International was down R2,47-rand, or 4,34%, to R54,50.
Poultry producer Country Bird weakened 11 cents, or 5,12%, to R2,04. The group earlier reported that its diluted headline earnings per share for the six months ended December 2008 were down 29% to 18,43 cents from 25,78 cents for the previous comparative half year.
It said that revenue at R1,106-million was up 33% from the R832 466 reported in 2007.
Packaging group Astrapak put on 20 cents, or 3,08%, to R6,70.
Construction group Aveng was down 48 cents, or 1,72%, to R27,35, Murray & Roberts lost 64 cents, or 1,47%, to R42,86 and WBHO gave up R1,94, or 2,04%, to R93,05.
Among telecommunications groups, MTN Group shed R1,10, or 1,13%, to R96,20 and Telkom eased 20 cents to R112,05. — I-Net Bridge