South African stocks remained in the red by noon on Thursday as investors took profits after US retail sales sparked a sell off in international markets.
By noon, the JSE all-share index had lost 1,16%, with resources down 2,08%. Platinum counters gave up 1,28% and gold miners were off 3,77%.
Banks slipped 1,81%, financials weakened 1,07%, and industrials eased 0,13%.
The rand was last bid at 8,54 to the dollar from 8,48 when the JSE closed on Wednesday. Gold was quoted at $923,08/oz a troy ounce from $926,85/oz at the JSE’s last close, and platinum was at $1 106/oz, from $1 097/oz at its previous close.
“We are still weak on the markets. There is a sell off after the US retail sales yesterday,” a trader said.
“There is profit taking in the market. At the moment the indices are eyeing the initial jobless claims in the US and are hoping to get direction from there.
“In the short term, the trend is downwards, markets are in a consolidatory phase. Gold stocks are down sharply, they ran so hard earlier this week and now everyone is taking profits. The gold price has also retreated as the dollar strengthened overnight.
“The rand is weak and it is cushioning our market. If it wasn’t for the rand we would have been fallen much more,” he said.
Dow Jones Newswires reports that the FTSE 100 was flat attempting to push forward but lacking direction to make any meaningful headway, traders
said. The battle between momentum of optimism and consolidation continues, with the markets trading between gains and losses in a directionless
session, said Joshua Raymond, strategist at City Index.
“We have started to see investors picking up financials and mining stocks at their lowest, having fallen more than 12% during the week,” said Raymond.
Anglo American was down R3,51, or 1,85%, to R186,49 and BHP Billiton weakened R1,25 to R178,75.
Petrochemicals group Sasol fell R11,90, or 4,08%, to R280,10.
Sappi lost 86 cents, or 3,49%, to R23,78 but rival Mondi was up R1,14, or 4,06%, to R29,25.
ArcelorMittal declined R2,50, or 2,82%, to R86.
Among gold miners, AngloGold Ashanti shed R9,19, or 2,88%, to R310,22, Gold Fields gave up R4,77, or 4,43%, to R102,93 and Harmony lost R4,82, or 5,18% to R88,18.
Platinum miner Anglo Platinum was off R2,98 to R474,02, Impala Platinum was down R2,82, or 1,70%, to R163,18 and Lonmin fell R3,09, or 2,05%, to R147,91.
Diversified miner African Rainbow was down R3,59, or 2,85%, to R122,51 and Exxaro gave up R1,80, or 2,47%, to R71, but Hulamin was up 24 cents, or 2,28%, to R10,75.
Elsewhere on the JSE, brewer SABMiller eased 30 cents to R158. The group earlier reported a 4% decline in adjusted headline earnings per
share to US 137,5 cents for the year ended March 2009 from 143,1 cents a year ago.
Barloworld lost R1, or 2,67%, to R36,50, Tiger Brands was down R2,37, or 1,82%, to R127,88, British American Tobacco shed R2,81, or 1,26%, to R221 and Imperial declined 70 cents, or 1,33%, to R51,90.
Among banks, Standard Bank was down R1,95, or 2,42%, to R78,55, Nedbank lost R1,73, or 2,01%, to R84,27 and FirstRand weakened 23 cents, or 1,77%, to R12,77.
Financial services group Old Mutual was up 15 cents, or 1,80%, to R8,50 but Sanlam lost 18 cents, or 1,05%, to R16,92.
Sugar group Illovo weakened 79 cents, or 2,97%, to R25,81.
Naspers added R3,07, or 1,61%, to R193,40 while Kagiso Media was off 15 cents, or 1,23%, to R12.
Among retailers, Truworths was down 50 cents, or 1,45%, to R34,06, Pick n Pay lost 90 cents, or 2,81%, to R31,15, JD Group shed R1,03, or 2,97%, to R33,62 and Foschini gave up R1,18 or 2,58%, to R44,62.
Construction Aveng gave up 38 cents, or 1,29%, to R29,12, Murray & Roberts lost 77 cents, or 1,70%, to R44,52 and WBHO fell R2,49, or 2,42%, to R100,21.
ICT group Datatec added 10 cents to R15,30. It earlier reported underlying earnings per share of 33,1 US cents for the year ended on February 2009 from 47,3 US cents a year ago.
Revenue rose to $4,2-billion from R4-billion in 2008, while earnings before interest, tax, depreciation and amortisation (Ebitda) declined to $126-million from $151-million. Cash generated from operations rose to $195-million from 2008’s $77-million.
The capital distribution per share of 12 US cents was unchanged from 2008.