The JSE remained in negative territory by noon on Tuesday taking direction from weaker European markets but a weak local currency prevented the bourse from falling deeper into the red.
By noon, the JSE all share index had lost 1,35%, with resources easing 0,59%. However, platinum miners edged up 0,74% and gold miners gained 3.64%.
Banks gave up 2,89%, financials were down 2,40%, and industrials shed 1,66%.
The rand was last bid at 10,22 to the dollar, from 10,01 when the JSE closed on Monday. Gold was quoted at $962,70/oz a troy ounce from $941,35/oz at the JSE’s last close, and platinum was at $1 080/oz from its previous close of $1 062,50/oz.
“We are down, continuing on yesterday’s falls and moving with weak European markets,” a local trader said.
“As emerging markets continue to be sold off, the rand has weakened and that is in turn cushioning us from big falls. The market wants to see new lows before new buyers can come in. We are very close to new lows on the Dow.
“The gold price is up and it’s looking very good. This will pass like we have seen before. If we do see new lows, we will see the market rally again,” he said.
Dow Jones Newswires reports that the FTSE 100 edged lower slightly following CPI data for January. GFT Global Markets’ market strategist David
Morrison said that CPI at -0,7% on the month versus -0,4% in Dec and +3% on the year came in higher than the expected level of 2,7%. “Despite a collapse in the price of oil, prices have remained stubbornly high with the fall in sterling being blamed for higher import prices,” he said. “Any relief that deflation is not taking hold must be tempered by this unexpectedly high inflation number, which does not bode well for the future, and would suggest a rapid rethink from the BOE on quantitative easing and further rate cuts,” he added.
The FTSE 100 was last down 1,49%.
US stocks are expected to plummet at the open, playing catchup to the global sell-off, said Martin Slaney, trader at GFT Global Markets.
He called the DJIA to open down 187 points and the S&P 500 down 22,5 points.
Back in Johannesburg, resources giant Anglo American gave up R1,93, or 1,05%, to R181,77 and BHP Billiton was down R2,34, or 1,32%, to R174,75.
Petrochemicals group Sasol shed R9,99, or 3,65%, to R264.
Paper group Sappi weakened 93 cents, or 3,36%, to R26,75.
ArcelorMittal shed R3,71, or 4,68%, to R75,49, Kumba Iron Ore sank R9,20, or 5,51%, to R157,75 and Highveld Steel lost R1,95, or 3,31%, R57.
Among gold miners, AngloGold Ashanti firmed R11,51, or 3,92%, to R305,50, Gold Fields was up R3,80, or 3,39%, to R115,79 and Harmony was up R3,80, or 3,25%, to R120,70.
Platinum miner Anglo Platinum (AMS) collected R8, or 1,97%, to R415 but Lonmin was off R4,61, or 2,85%, to R157,33.
In diversified miners, African Rainbow weakened R6,49, or 5,05%, to R122 and Exxaro was down R3, or 4,35%, to R65,95.
Among industrials, brewer SABMiller gave up R2,84, or 1,82%, to R153, Barloworld lost R1,45, or 3,92%, to R35,55, Remgro shed R1,60, or 2,13%, to R73,40, Bidvest weakened R1,95, or 2,07%, to R92,25 and Imperial fell 60 cents, or 1,12%, to R52,90.
Among banks, Standard Bank was down R2,20, or 3,17%, to R67,30, Nedbank lost R2,50, or 2,94%, to R82,50, Absa gave up R2,22, or 2,34%, to R92,73 and FirstRand shed 24 cents, or 1,72%, to R13,68.
Old Mutual lost 29 cents, or 3,82%, to R7,31, Mutual & Federal was down R1, or 6,67%, to R14 and Investec shed R1,75, or 4,86%, to R34,25.
African Bank was down 78 cents, or 2,91%, to R26,07.
Sugar group Illovo gave up R1,04, or 3,83%, to R26,11 but Tongaat-Hulett was up R1, or 1,45%, to
Media group Naspers weakened R3,28 rand, or 2,05%, to R156,72.
Woolies weakened 35 cents, or 2,72%, to R12,50, Pick n Pay was off 63 cents, or 1,97%, to R3,37.
Massmart lost R2,10 rand, or 2,72%, to R75 and Mr Price shed 83 cents, or 3,32%, to R24,15.
Group Five was down 44 cents, or 1,52%, to R28,55 and Murray & Roberts lost 99 cents, or 2,51%, to R38,40.
Cement manufacturer Pretoria Portland Cement fell 90 cents, or 2,90%, to R30,10.
Liberty International gave up R1,14, or 2,14%, to R52,05.
Packaging group Nampak weakened 26 cents, or 1,92%, to R13,25.
Among telecommunications groups, MTN Group eased 84 cents to R92,16 and Telkom fell R2,64, or 2,31%, to R111,66.
Comair weakened 10 cents, or 5,56%, to R1,70. The
group earlier reported sharply lower diluted headline earnings per share of 7,9 cents for the six months to December 2008 from 13,4 cents a year ago, as earnings were pressured by the record-high fuel prices in the first quarter.
No interim dividend was declared as it is company policy to consider one dividend annually.
Attributable earnings declined by 47% to R32-million and revenue declined to R1,607-billion from a previous R1,258-billion. – I-Net Bridge