The JSE stayed weaker at noon on Wednesday as poor global market sentiment continued to keep local equities under pressure.
By noon local time the JSE all share index had lost 0.86 percent, with resources 1.37 percent lower. Platinum miners shed 1.87 percent, but gold miners were up 0.49 percent. Banks fell 0.49 percent, financials were 0.63 percent in negative territory and industrials gave up 0.52 percent.
The rand was bid at R7.68/$ from R7.61/$ at the JSE's last close. Gold was quoted at $1 188.21 a troy ounce from at $1 192.88/oz at the JSE's previous close, while platinum was at $1 505.50/oz from $1 507.50/oz at the JSE's last close.
A local trader said the local market is taking its cue from its global counterparts, which were experiencing a sell-off on concerns over the global economic recovery.
The trader said investors are cautious in anticipation of the start of the US earnings reporting period.
Dow Jones Newswires reports that Asian stocks largely declined on Wednesday after weak US data refuelled worries about the strength of the global economic recovery while technology shares across the region fell, unimpressed by Samsung Electronics' forecast of a record operating profit.
"Equity markets are pricing in a very pessimistic or 'worst case' view of global economic growth, more so than the bond markets," said IG Markets institutional dealer Chris Weston.
European stocks also fell, taking their cue from the weak Asian session, after US stocks failed to hold on to initial strong gains on Tuesday as fears about global growth continued to dent sentiment.
"Disappointing data and also the uncertainties around what will be (or not be) disclosed around the stress tests seem to have kept risk takers on the back foot," said Deutsche Bank in a strategy note.
Traders said another round of disappointing US data in the form of Tuesday's Institute for Supply Management non-manufacturing figures has reignited fears that the US economy is losing steam, adding to worries about the global recovery.
"Concerns over the growth outlook for the US have resurfaced and are unsurprising in light of the slew of weaker-than-expected data points of late," said Goodbody Stockbrokers.
"By all accounts, activity is entering the third quarter on a weaker footing," it added.
On the JSE, Anglo declined R4.77 or 1.75 percent to R267.54, BHP Billiton lost R2.83 or 1.38 percent to R201.75, and Sasol gave up R5.34 or 1.90 percent to R276.26.
Platinum miner Anglo Platinum shed R15 or 2.03 percent to R725, and Lonmin decreased R3.46 or 1.85 percent at R161.05.
Aquarius Platinum plummeted R3.08 or 8 percent to last trade at R34.92. The world's fourth-largest platinum producer has suspended its Marikana operations following five fatalities following a fall of ground accident on Tuesday evening.
Aquarius said the investigation into the cause of the accident would commence on Wednesday afternoon. This is the second accident reported by Aquarius this month.
Among gold miners, AngloGold Ashanti picked up R1.16 to R313.
Diversified miner Exxaro was down R1.96 or 1.80 percent to R107.14 and Kumba fell R5.49 or 1.64 percent at R329.31.
Among industrials, Bidvest lost R1.60 or 1.25 percent to R126.40.
Telecommunications group MTN lost 69 cents to R105.51.
In the banking sector, Nedbank shed R3.30 or 2.56 percent to R125.70, and Absa dropped 20 cents to R126.50.
Financial services group Sasfin declined 10 cents to R37.10. The group said on Wednesday that it expected that headline earnings for the 12 months ended June 2010 will be between 20 percent to 40 percent lower when compared with the previous corresponding period in 2009.
Construction entity Group Five added 11 cents to R34.59. Earlier its said it expects fully diluted headline earnings per share to be between 5 percent -15 percent higher at 533 cents per share to 584 cents per share for the year ended June 2010, from 508 cents previously.
It expects fully diluted earnings per share to be between 40 percent - 50 percent lower at 243 cents per share to 292 cents per share, from 486 cents previously.
Media giant Naspers gained R4 or 1.51 percent to R268.25.
In the pharmaceuticals sector, Aspen gave up 22 cents to R76. Aspen Global Incorporated, a subsidiary of Aspen, said it had submitted a confirmed offer to acquire Australian group Sigma Pharmaceuticals Limited.
Aspen is offering a cash price per Sigma share of A$0.55 which implies an equity value of A$648 million based on 1 178.6 million Sigma shares outstanding. - I-Net Bridge
