The JSE was lower at midday on Thursday as investors worried about global growth after US Federal Reserve chairwoman Janet Yellen’s testimony to Congress.
At 12pm the all share was down 1.87% at 47‚372.90 points and the blue-chip top 40 index had lost 2.33%. The gold index gained from the general unease in markets‚ gaining 9.09%. Banks and financials led the losses‚ falling 3.62% and 2.70% respectively. Industrials were down 1.90% while platinums gained 0.77%.
The price of spot gold shot up 1.67% to $1‚217.05/oz buoyed by dollar weakness and the search for safe-haven assets.
European stocks were faring no better.
By noon (CAT)‚ the London FTSE 100 had dropped 2.48%‚ the Paris CAC 40 was down 3.59% and the German DAX 30 had tumbled 2.91%.
Accendo Markets’ head of research‚ Mike van Dulken‚ said the weakness in the markets stemmed from Ms Yellen’s "warning on current financial market turbulence and suggesting further rate hikes could be delayed‚ which added to already raised anxiety about the health of the global economy to hold back risk sentiment".
Among individual shares on the JSE‚ Assore slid 6.67% to R92.20.
In gold shares‚ AngloGold Ashanti climbed 8.92% to R179.72‚ Gold Fields surged 9.57% to R68.15 and Harmony rallied 10.28% to R41.08.
Standard Bank fell 4.68% to R105.81‚ Nedbank dipped 3.63% to R178.52 and Barclays Africa was down 4.86% at R137.
After releasing its interim results earlier in the session‚ Woolworths plunged 7.94% to R85.88. In its outlook‚ the company said conditions were expected to become more difficult going into the second half of its financial year.
"Increasing interest rates in SA will add further pressure on local consumers. Our response is to ensure that we offer our customers value and quality across our brands‚ products and services‚ as well as focus on costs and efficiencies‚" the company said.
- TMG Digital/BDlive
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