The JSE was awash in red in noon trade on Friday in line with global markets after the US Federal Reserve's surprise decision to raise its discount rate which has soured risk appetite and placed downward pressure on commodity prices.
A softer rand helped to pare some of the losses however.
At noon, the JSE all share index was 1.04 percent lower, with resources down 1.82 percent, gold mining shares lost 1.75 percent and platinum miners fell 0.73 percent.
Banks and financials declined 0.60 percent and 0.55 percent respectively, while industrials lost 0.50 percent.
The rand was bid at R7.68/$ from R7.63/$ shortly before the JSE closed on Thursday.
Gold was quoted at $1 108.60/oz from $1 117.57o/z at the JSE's last close, and platinum was at $1 506.50/oz, from $1 529.50/oz at the bourse's previous close.
"There's weakness across the board on Friday. Some of the retailers are looking positive however."
"We're just following world markets, which have weakened after the US Fed's surprise decision last night to raise its discount rate."
"This has put commodity prices under pressure so resource stocks in particular are feeling it," a local equities trader said.
Dow Jones Newswires reports that European stocks were trading slightly lower on Friday as a whole, but off initial lows, with investors less negative on the Federal Reserve's move to increase the discount rate than Asian peers, focusing increasingly on the road to recovery for the world's largest economy.
Initially, markets opened sharply lower, while the dollar jumped higher and commodity prices declined.
"This is simply the first step towards normality not towards tightening," said Standard Chartered.
After an initial negative reaction markets were well off lows, and by 10:55 SA time, the pan-European Stoxx 600 index was down 0.2 percent at 248.7.
London's FTSE 100 index gained 0.2 percent to 5 333.2, Frankfurt's DAX index was down 0.1 percent at 5 676.1, and the CAC-40 index in Paris was 0.1 percent lower at 3 745.9.
"The markets haven't reacted quite as badly as one might expect after the surprise action taken by the Fed last night," said Angus Campbell, head of sales at London Capital Group.
"Investors remain focused on earnings and they've impressed."
"A small rise in the Fed's discount rate will do little to dampen investor sentiment," he added.
Meanwhile, Asian shares mostly declined on Friday as the US Federal Reserve's decision to raise its discount rate pushed the dollar higher but hurt investor sentiment and commodity prices, with Hong Kong stocks falling the most.
Regional stocks were tentative in early trading, but the fall accelerated as shares tied to the economic cycle declined and gold prices fell amid rising expectations that a hike in the Fed's main policy rate could follow sooner than many had anticipated.
"The timing is not good. Although this is a sign of the US economic recovery, the Fed's hiking of the discount rate can give a short-term shock to the market that has been under downward pressure [from early this year] due to concerns over China's tightening moves," said Bae Sung-young at Hyundai Securities.
"The Fed's move will certainly revive [concerns in equity markets] that the global tightening moves may come earlier than expected."
Japan's Nikkei fell 2.1 percent to 10,123.58 and Hong Kong's Hang Seng Index slid back below the 20 000-point level, ending 2.6 percent lower at 19 894.02.
Australia's S&P/ASX 200 dropped 0.4 percent, South Korea's Kospi fell 1.7 percent and in afternoon trading, India's Sensex slid 0.8 percent lower.
Markets in China, Taiwan and Vietnam remained closed for the Lunar New Year holidays.
Dow Jones Industrial Average futures were down 94 points in screen trade.
On Thursday, the Fed raised the rate it charges banks for emergency loans by a quarter percentage point to 0.75 percent, a move that was signaled for some time, but which investors believed was badly timed.
On the JSE, Anglo American shed R8.40, or 2.83 percent, to R288.50 and BHP Billiton dropped R4.30, or 1.79 percent, to R235.68.
Sasol declined R3.10, or 1.10 percent, to R278.40.
Resources giant Anglo American on Friday reported a 53.5% drop in full year earnings per share to 2.02 US cents for 2009 from 4.34 US cents in 2008.
This was due to its attributable profit that fell to $2.4 billion in the 12 months to end December 2009 from $5.2 billion in the 12 months to end December 2008.
Revenue dropped 25.3% to $24.6 billion from $33 billion while operating profit of $5.0 billion was reported for 2009 from $10.1 billion in 2008.
Anglo American's underlying earnings were $2.6 billion from $5.2 billion the year before. Net debt stood at $11 billion at end December 2009.
Platinum miner Anglo Platinum wavered R5 to R741, and Impala Platinum lost R2.22, or 1.13 percent, to R194.
Among gold counters, AngloGold Ashanti dropped R6.10, or 2.13 percent, to R280, GoldFields moved R1.23, or 1.32 percent lower, to R91.97, and Harmony slipped R1.11, or 1.55 percent, to R70.47.
Junior gold producer Simmer & Jack Mines (Simmers) was off a cent - or 0.78 percent - at R1.28.
The mine on Friday reported December quarter production of 29 040 ounces, which is 13 percent lower than the 33 301 ounces reported in the September quarter.
This was as a consequence of the shaft rationalisation process at Buffelsfontein and the shift in focus to profitable ounces.
This translated into gold revenue of R238 million for the 3 months to end December 2009, compared to R247 million in the previous quarter.
Unit cash costs declined 4 percent from R266 345 a kilogram to R254 972 a kilogram. The group was unchanged at R1.29.
Kumba Iron Ore fell R3, to R341 and diversified miner Exxaro gave up 7 cents to R109.63.
ArcelorMittal shed 10 cents to R111.90.
Industrial group BAT, on the other hand, gained 55 cents to R260.05.
Banker Nedbank dropped 53 cents to R122.57, and Absa wavered 8 cents to R133.69, while Standard Bank was off 43 cents at R108.12.
Financial services group Old Mutual dropped 14 cents, or 1.08 percent, to R12.83.
Construction's Group Five dropped 85 cents, or 2.56 percent, to R32.40 and Murray & Roberts shaved off 196 cents or R4.70 to R39.74.
Media group Naspers N declined R3.74, or 1.34 percent, to R275.56.
Among telecoms groups, MTN was 126 cents or 1.13 percent worse off at R110.49.
Among retailers, Truworths was UP 52 cents or 1.16 percent at R45.47 and Mr Price was 56 cents or 1.48 percent at R38.40. - I-Net Bridge
