THE JSE continued to lose momentum in morning trade today and was deep into the red by noon, still moving in line with weak global markets. The all share index had fallen 3,28%, weighed down by platinum stocks, which fell 6,61%, and resources, which lost 5,23%. However gold miners were up 3,50%.
Banks came down R3,86% and financials gave up 2,85%, while industrials were down 1,64%.
The rand was bid at R11,22 to the dollar from R10,98 when the JSE closed on Friday, while gold was last quoted at $714,50 a troy ounce from $726,15/oz at the JSE’s last close. Platinum was at $756/oz, down 4,97% from Friday’s close of $795,50/oz. Brent crude was at $59,56 from its previous close of $62,05.
The local bourse opened 0.73% stronger but, as predicted by traders, it gave up strength and slipped into negative territory in early trade as the JSE continued to take direction from weaker global markets.
Asian stocks were sharply weaker after Wall Street closed over 3% lower on Friday, and European stocks have also posted strong losses.
"The JSE is in the red, but not as deep in the red as some of the global markets," a local equities trader said.
"There is still a lot of negativity. The amount of selling is putting markets under pressure," said the trader.
He said that after taking a major knock last week, gold stocks have firmed as buyers start perceiving them as once again being a "safe haven".
Dow Jones Newswires reports that European stocks stay pinned deep in negative territory amid growing recession worries. German business sentiment data also does little to improve overall mood.
The FTSE was last down 4,74% and other European shares were also much lower with US stock futures were pointing to another day of heavy losses on Wall Street.
US stocks are seen sliding at the open as recession fears continue to plague investor sentiment. Spreadbettor CMC Markets calls the DJIA around 220 points lower at 8158,95 and the S&P 500 index down 20 at 856,77, Dow Jones Newswires said.
Earlier in Asia, Hong Kong’s Hang Seng Index ended down 12,7% - its lowest closing level since May 2004 - and in Tokyo, the Nikkei gave up 6,36%.
