The JSE remained weaker at midday on Tuesday in line with global markets which have been spooked by the potential impact of the outbreak of swine flu.
The JSE all-share index was down 2,34%, led lower by a 4,27% slump in resources and a 4,08% fall in platinum miners. Industrials were off 1,11% and financials eased 0,32%. However gold miners were up 1,05% despite a weaker bullion price, and banks were flat (-0,04%).
The rand was last bid at 8,85 to the dollar, from 8,83 when the JSE closed last Friday. Gold was quoted at $897,87/oz a troy ounce from $907,05/oz at the JSE’s last close, and platinum was at $1 099/oz, from $1 177.50 its previous close.
Dow Jones Newswires reports European stocks were weaker, weighed down by concerns over the global impact of the swine flu outbreak and the health of the banking system, following a Wall Street Journal report which indicated Bank of America and Citigroup may need to raise more capital.
In London the FTSE100 is currently off 1,82%.
US stocks are seen falling at the open, with the focus on the Wall Street Journal report, while uncertainty over swine flu lingers in the background, says David Morrison, strategist at GFT.
He calls the DJIA to open down 75 points at 7 950 and the S&P 500 down 11,5 at 846.
On Monday the Dow ended down 51,29 points, or 0,64%. In Asia overnight, the Nikkei closed down 2,67% and the Hang Seng Index was off 1,9%.
A local equities trader said that the JSE was seeing some profit taking after the big moves of the past few weeks. The local bourse is taking its lead from global markets, where sentiment has been affected by the swine flu outbreak. Globally sectors most affected are airlines, hospitality and tourism.
The local trader added the gold shares were holding up well despite the weaker bullion price, but platinum shares were under pressure as the price of the white precious metal fell.
Among resources stocks, Anglo American eased R10,75, or 5,87%, to R172,25 and BHP Billiton lost R12, or 6,5%, to R173.
Petrochemicals group Sasol was down R11, or 4,1%, to R257.
Mondi was down one rand, or 3,85% at R25, while Mondi was off 96 cents, or 4,58%, at R20.
Among gold miners, AngloGold Ashanti added R2,91, or 1,01%, to R291,50, Gold Fields firmed R1,30, or 1,3%, to R101,30 and Harmony was up 60 cents to R86,60.
Platinum miner Anglo Platinum was off R10,98, or 2,44%, to R439,01 and Impala Platinum shed R7,51, or 4,7%, to R151,70.
Aquarius Platinum shed R3,10, or 8,8%, to R32,10. It said earlier that it has received an irrevocable undertaking to vote in favour of the acquisition of Ridge Mining in respect of R18,423-million Ridge shares held by Gold Mountains International Mining Company — a wholly owned subsidiary of Zijin Mining Group.
On 26 March 2009 Aquarius and Ridge Mining announced the possible acquisition of Ridge by Aquarius.
Among industrials, brewer SABMiller was down R2,73, or 1,94%, at R137,75 and British American Tobacco lost R6,14, or 2,96%, to R201,05.
However Bidvest added 80 cents to R88,20 and Imperial gained 29 cents to R53,39.
Banker Nedbank rose 10 cents to R85,52, Standard Bank was unchanged at R80 and Absa collected eight cents to R94,63.
Financial services group Old Mutual shed 7 cents to R7,63.
Telecommunications group MTN Group collected 41 cents to R110,61 and Telkom firmed R3,45, or 3,04%, to R116,95. The trader said Telkom was well supported ahead of the unbundling and listing of Vodacom on May 18.
In the news, Datatec was up 30 cents, or 1,9%, to R16. It earlier reported that it has disposed of its 55% stake in African Legend Indigo to focus on growing its Westcon distribution business in South Africa. The divestment follows a strategic review of South African assets.
Liberty International was off R6,50, or 11,2%, to R51,50. It announced on Monday that it plans to raise gross proceeds of approximately £500- to £600-million by means of a firm placing and a placing and open offer of new ordinary shares.
It also reported that headline occupancy levels at 31 March 2009 have remained high at 98,5%, from 98,7% at the end of December 2008.
Releasing an interim management statement, the group said estimated footfall at Capital Shopping Centres’ centres in 2009 has continued to show encouraging strength with its 12 completed centres recording an increase of over 3% in the year to date.
A local trader said earlier the share price was adjusting to the capital raising deal, which is a complicated one. — I-Net Bridge