The JSE inched off its earlier low levels but remained in the red by noon on Monday with banking counters still leading the decliners as continued negative sentiment weighed on bourses around the world.
The JSE all-share index had eased 0,34%. Resources edged up 0,56%, platinum miners were up 1,42% and gold counters added 2,49%.
Banks fell 4,43%, financials were off 2,57% and industrials edged down 0,30%.
The rand was last bid at 10,31 to the dollar from 10,10 when the JSE closed on Friday. Gold was quoted at $953,10/oz a troy ounce from $960,07/oz at the JSE’s last close, and platinum was at $1 092,50/oz from its previous close of $1 069,50/oz.
“We are still down, but we have managed to pick up from earlier lows. Sentiment overseas is still very negative and that is depressing market prices at the moment,” a local trader said.
“The rand has weakened in line with emerging markets and on risk aversion. It may have also helped some of these direct mining shares. The likes of Exxaro and Kumba are looking positive.
“The banking shares are taking a hit. The volatility remains in the market and we can’t seem to get away from this negative sentiment. The rallies are just not holding and it is difficult to say when this negative sentiment will lift.
“Liberty International is picking up after having been very hard hit and overdone. The rand is also helping them.
“Falls are likely to continue for some time, but share prices could get to levels where bargain hunting will come into the market,” he said.
Dow Jones Newswires reports that the FTSE 100 was down, maintaining its lows after the release of UK CIPS manufacturing PMI. James Knightly, economist at ING Bank said the combination of falling output, weak inflation pressures and very low credit growth continued to suggest that the Bank of England can easily justify cutting rates to 0,50% on Thursday. Meanwhile other data show mortgage approvals remain unchanged in January from December.
US stocks are expected to plummet at the open, breaking through 7 000, as the financial sector continues to take losses, said David Morrison, strategist at GFT.
He called the DJIA to open down 112 points and the S&P 500 down 13 points.
On the JSE, Anglo American was down R1,83, or 1,30%, to R139,45 and BHP Billiton eased 6 cents to R156,34.
Petrochemicals group Sasol gave up R2 to R250.
ArcelorMittal gave up 78 cents, or 1,05%, to R73,17 and Highveld Steel lost R2,85, or 4,03%, to R67,90, but Kumba Iron Ore gained R9, or 5,59%, to R170.
Gold miner AngloGold Ashanti added R9, or 3,03%, to R306,50, Gold Fields was up R2,95, or 2,82%, to R107,45 and Harmony collected 75 cents to R123,50.
Platinum miner Anglo Platinum was up R5,13, or 1,33%, to R391, Impala Platinum put on R1,66, or 1,40%, to R120,25 and Lonmin added R4,68, or 3,30%, to R146,42.
In diversified miners, African Rainbow lost R3, or 2,65%, to R110 and Exxaro was unchanged at R67,50.
Among industrials, brewer SABMiller was barely changed, up 6 cents, to R144,06 while British American Tobacco added R4,25, or 1,67%, to R259,50.
However, Tiger Brands gave up R1,30, or 1,03%, to R125,20, Famous Brands weakened 25 cents, or 1,69%, to R14,50 and Imperial gave up 80 cents, or 1,81%, to R43,50.
Bidvest shed R4,50, or 5,42%, to R78,50. It earlier reported that its diluted headline earnings per share for the half year ended December 31 2008 had dropped 7,5% to 450,4 cents. Its distribution per share was down 13,6% to 190 cents for the period.
Trading profit, however, was reported to have lifted 6,4% to R2,615-billion from a previous R2,458-billion in the same period a year ago.
Banker Standard Bank weakened R3,24, or 4,98%, to R61,76, Nedbank gave up R1,88, or 2,50%, to R73,37, Absa was down R3,49, or 3,92%, to R85,51 and FirstRand fell 55 cents, or 4,56%, to R11,50.
Financial services group Old Mutual was off 22 cents, or 3,62%, to R5,85 and Investec lost 80 cents, or 2,65%, to R29,40.
Sugar group Tongaat-Hulett was down R1, or 1,31%, to R75,50.
Retailer Spar weakened 99 cents, or 1,86%, to R52,30 Lewis lost 90 cents, or 2,47%, to R35,53, Shoprite was down 88 cents, or 1,76%, to R49 and Steinhoff gave up 55 cents, or 4,90%, to R10,67.
However, Woolies added 18 cents, or 1,51%, to R12,08 and Truworths gained 76 cents, or 2,44%, to R31,90.
Liberty International was up R1,50, or 3,13%, to R49,50.
Construction group Group Five collected R1,14, or 4,14%, to R28,65 and WBHO gained R1,41, or 1,66%, to R86,41.
Cement manufacturer Pretoria Portland Cement weakened 49 cents, or 1,65%, to R29,21.
Packaging group Nampak gave up 17 cents, or 1,32%, to R12,73.
Telecommunications group MTN Group gave up 60 cents to R85,40 but Telkom gained R3,10, or 3,13%, to R102,17. — I-Net Bridge