The JSE fell into negative territory by noon on Thursday as market participants took profits on the back of continued market uncertainty both locally and abroad.
The JSE all-share index had fallen 1,01%, with resources easing 0,74%. However, platinum miners added 2,39% and gold miners firmed 3,96%.
Banks were off 2,40%, financials shed 1,71%, and industrials gave up 1,12%.
The rand was last bid at 10,01 to the dollar, from 9,90 when the JSE closed on Wednesday. Gold was quoted at $943,55/oz a troy ounce from $924,65/oz at the JSE’s last close, and platinum was at $1,079/oz from its previous close of $1,067/oz.
“There is still a lot of uncertainty in world markets. There are still questions regarding the US stimulus package,” an equities trader said.
“The Dow is showing signs of uncertainty and Eastern markets were down earlier. Locally we followed through on continued profit-taking.
“The direct mining shares are seeing some upward moves. That is where the action is at the moment.
“Gold stocks are really looking good on the back of a strong gold price and now a weaker rand as well. Platinum shares are also doing well.
“Locally, we are still absorbing the budget. The general sentiment in the world is worrying and is weighing on global markets. Resources have seen some big swings recently. The downward movement is almost expected. They will probably get to levels where some buying will seep back in,” he added.
Dow Jones newswires reports that European stocks were sharply lower on Thursday. Risk aversion was back with a vengeance as investors focused once again on grim economic prospects and the continuing passage of the $789-billion economic stimulus plan through the United States Congress.
The FTSE 100 was last down 1,06%.
On the JSE, resources giant Anglo American gave up R7,86, or 4,01%, to R188,23 and BHP Billiton lost R4,39, or 2,37%, to R180,70.
Petrochemicals group Sasol weakened R3,99, or 1,45%, to R272,01.
Paper group Sappi fell 86 cents, or 3,04%, to R27,39 and rival Mondi lost 85 cents, or 3,04%, to R27,15.
Highveld Steel was down R1,95, or 3,20%, to R59 and Kumba Iron Ore weakened R1,05 to R173,94.
Among gold miners, AngloGold Ashanti firmed R10,13, or 3,51%, to R299,13, Gold Fields was up R5,05, or 4,59%, to R115,10 and Harmony put on R5, or 4,33%, to R120,50.
Platinum miner Anglo Platinum added R4 to R450 and Impala was up R4,25, or 3,26%, to R134,50.
In diversified miners, African Rainbow put on R1 to R125 and Exxaro collected R2,55, or 3,70%, to R71,55.
First Uranium Corporation was unchanged at R25,10. It earlier announced that it had completed its previously announced bought deal private placement of 20,5 million units of the company at a price of C$3,00 per unit, for gross proceeds of $61,5-million.
First Uranium will use the gross proceeds to fund the continued development of the Ezulwini Mine and the expansion of the Mine Waste Solutions tailings recovery operation and for general corporate purposes, it said.
Among industrials, brewer SABMiller was off R4,66, or 2,89%, to R156,84, Tiger Brands lost R3,29, or 2,44%, to R131,60 and British American Tobacco weakened R3,65, or 1,39%, to R258,50.
Among banks, Standard Bank fell R2,13, or 2,87%, to R72,17 and FirstRand weakened 50 cents, or 3,37%, to R14,35.
Old Mutual gave up 35 cents, or 4,32%, to R7,76 and RMB Holdings shed 25 cents, or 1,08%, to R22,85.
Sugar group Illovo was up 92 cents, or 3,60%, to R26,45 but Tongaat Hulett was down R2,78, or 3,97%, to R67,22.
IT company Business Connexion Group was unchanged at R3,62. It earlier reported a 35% decline in diluted headline earnings per share to 9,4 cents for the six months ended November 2008 from 14,4 cents a year earlier.
Headline earnings were impacted by a payment of R15,8-million secondary tax on companies on the special dividend of 60 cents per share declared for the financial year ended May 2008, as well as the one-off revitalisation programme costs.
Recruitment agency Kelly Group was unchanged at R4,60. It said earlier that in line with expectations, group revenues for the first quarter were up 13% from the same time last year.
Retailer Foschini shed 64 cents, or 1,33%, to R47,40, Nu Clicks gave up 24 cents, or 1,52%, to R15,50 and Mr Price weakened 45 cents, or 1,75%, to R25,20.
Liberty International shed R2,39, or 4,28%, to R53,46.
Construction group Aveng added 40 cents, or 1,43%, to R28,40 but Group Five lost 80 cents, or 2,52%, to R31.
Cement manufacturer Pretoria Portland Cement fell 90 cents, or 2,74%, to R32.
Among telecommunications groups, MTN Group was down R1,74, or 1,77%, to R96,31 but Telkom added 80 cents to R113,05. — I-Net Bridge