Resources led the downside as the JSE extended losses by noon on Monday in what a trader said was a session with “very little direction”.
The JSE all-share index had fallen 1,27%. Resources were down 2,47% and platinum counters lost 2,48%. However, gold miners collected 0,94%.
Banks weakened 0,46%, financials were off 0,67% and industrials eased 0,23%.
The rand was last bid at 9,05 to the dollar, from 8,93 when the JSE closed on Friday. Gold was quoted at $872,13/oz a troy ounce from $867,95/oz at the JSE’s last close, and platinum was at $1 184,50/oz from its previous close of $1 204,50/oz.
“We are not seeing any direction out there at the moment. We are seeing a bit of profit taking after the market’s recent moves,” the trader said.
“Gold shares were down last week and now we are seeing some buying at the current low levels.
“Shares have had some big runs and the market has had some big moves. Now we are seeing some consolidation and profit taking,” he said.
Dow Jones Newswires reports that the FTSE 100 gave up early session gains amid a lack of economic and corporate data to provide the direction, said traders.
“The markets appear to be in limbo,” noted Chris Hossain, sales manager at ODL Securities. “If we are to see a sustained bout of buying, we need to see consistent positive economic news flow, which simply can’t be guaranteed,” he added. Mining stocks come under pressure as base metals prices trade lower.
The FTSE 100 was last down 1,23%.
US stocks are expected to fall at the open, as investors pull back and consolidate recent gains ahead of a big week of earnings, said David Morrison, trader at GFT.
He called the DJIA to open down 61 points at 8 070 and the S&P 500 down 7,5 at 862,1.
“Disappointing earnings could trigger a harder sell off and a wake-up call to say we’re a long way from recovery,” he says. “Few are betting on the market rallying strongly from here, but it remains a possibility.”
Back in Johannesburg, Anglo American shed R9,15, or 5,01%, to R173,50 and BHP Billiton was off R6,49, or 3,50%, to R179.
Petrochemicals group Sasol lost R2,50 to R265,50.
ArcelorMittal was up R1,05, or 1,22%, to R87,05.
Gold miner AngloGold Ashanti was up R2,30 to R274, Gold Fields added R1,14, or 1,23%, to R93,56 and Harmony collected 88 cents, or 1,17%, to R76,38.
Among platinum miners, Anglo Platinum was down R16,45, or 3,38%, to R470,55, Impala Platinum lost R3,34, or 2,04%, to R160,66 and Lonmin fell R11,08, or 6,09%, to R171.
In diversified miners, African Rainbow added R4, or 3,57%, to R116.
Elsewhere on the JSE, brewer SABMiller shed R2,20, or 1,56%, to R138,51 and Remgro gave up R1,11, or 1,48%, to R73,89.
However, Tiger Brands gained R1,98, or 1,45%, to R138,98.
Among banks, Absa lost R1,04, or 1,02%, to R100,46, and all the other banks were flat.
Sanlam weakened 21 cents, or 1,30%, to R15,98 and Investec was off 69 cents, or 1,63%, to R41,52.
Retailer Woolies weakened 30 cents, or 2,40%, to R12,20 and JD Group was down 65 cents, or 1,93%, to R33.
However, Lewis was up 50 cents, or 1,19%, to R42,50, Foschini firmed 80 cents, or 1,70%, to R47,80 and Shoprite added 60 cents, or 1,13%, to R53,70.
Liberty International shed R4,41, or 7,07%, to R58.
Construction group Aveng collected 48 cents, or 1,70%, to R28,78 and Murray & Roberts added 63 cents, or 1,51%, to R42,28.
Telecommunications group MTN Group collected 14 cents to R106,54, but Telkom gave up 75 cents to R107,25. — I-Net Bridge