SOUTH AFRICAN stocks were 454 points weaker by noon today, led lower by resources and precious metal stocks amid profit taking and consolidation after the market's recent big runs.
In noon trade, the JSE all share index had lost 1.74%. Resources shed 2.19%, and platinum and gold producers declined 1.05% and 2.27% respectively.
Banks gave up 1.76%, financials were down 1.23% and industrials weakened 1.49%
The rand was bid at R7.92/$ from R7.85/$ when the JSE closed yesterday. Gold was quoted at $1,058.42 a troy ounce from $1,060.05 at the JSE's last close, and platinum was at $1,333.50/oz, from $1,331/oz at its previous close.
"We have been overdone, the market has had a very big run and it's been overdue that we see profit taking," a trader said.
"There are still economic indicators out, especially in the US, but I think all that has already been discounted and there is a feeling that things have run very hard.
"There is foreign selling in our market. The selling is fairly broad based. The gold shares are under pressure despite a steady price. The market is tiring and it's consolidating. The dollar is recovering again. There is profit taking, the markets have had big runs," he said.
"There are shares that are looking good. The share prices have been low and they are starting to pick up," he added.
Dow Jones Newswire reported that the FTSE 100 was firmly in the red on Tuesday, with risk aversion showing its face again, petering out overnight as Asian equities fell, noted Lloyds Banking Group. The strengthening global economy in 4Q, (following upbeat global manufacturing data on Monday) has not led to a sustainable bid for risk, says Lloyds. "The price action most likely reflects the negative sentiment that is building in equities and the expectation that data may deteriorate over the coming quarters," it added.
Also, UK construction PMI index falls to 46.2 in October from 46.7 in September, lower then consensus forecast of 47.2. "The improvement has not materialised yet, and construction activity remains in contraction territory," said Newedge Group.
The FTSE 100 had last lost 1.91%.
Back in Johannesburg, Anglo American plc lost R6.48, or 2.21%, to R286.52 and BHP Billiton shed R6.81, or 3.15%, to R209.30.
Petrochemicals group Sasol declined R1.15 to R292.35.
Paper group Sappi was off 60 cents, or 2.08%, to R28.21 and Mondi gave up 53 cents, or 1.20%, to R43.57.
Highveld Steel was down R2.50, or 3.97%, to R60.50, ArcelorMittal gave up R2.70, or 2.58%, to R102.10 and Kumba Iron Ore shed R7.40, or 3.23%, to R221.35.
AngloGold Ashanti was off R5.10, or 1.70%, to R295, Gold Fields declined R2.79, or 2.74%, to R99 and Harmony fell R2.54, or 3.22%, to R76.31.
Platinum miner Anglo Platinum weakened 65 cents to R651, Impala Platinum was R2.50, or 1.46%, lower at R168.50 and Lonmin shed R8.25, or 4.20%, to R188.
Among industrials on the JSE, brewer SABMiller was down R6.58, or 3.14%, to R202.85 and Imperial weakened 79 cents, or 1.01%, to R77.80, but Barloworld was up 97 cents, or 1.91%, to R51.72.
Banker Standard Bank lost R1.50, or 1.55%, to R95, Nedbank was down R1.74, or 1.50%, to R114.26, Absa fell R3.35, or 2.73%, to R119.15 and FirstRand weakened 30 cents, or 1.74%, to R16.95.
Sugar group Illovo lost R1.11, or 3.11%, to R34.60. It earlier said in a trading update that its headline earnings per share (HEPS) and earnings per share (EPS) for the six months ended September 30 are expected to be between 25% and 30% higher than those of the previous corresponding period.
Operating profits for the period are anticipated to increase by around 35%.
Illovo said its results are generally impacted by production volumes, domestic market sales, the level of the rand compared to other currencies, and by the world price of sugar.
Among retailers, Truworths was down R1.42, or 3.23%, to R42.58, Lewis declined R1.75, or 3.27%, to R51.70 and Mr Price declined R1.10, or 3.19%, to R33.35.
Telecommunications group MTN Group gave up R1.10 to R113.51, Telkom weakened 41 cents to R42.40 and Vodacom edged down 42 cents to R52.45.
