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Johannesburg - The JSE consolidated on Friday morning as investors await international economic news that can influence future developments in the local market.
By midday on Friday all the major indices were down. The losses were initially quite modest, but by midday the intraday graphs were heading distinctly downwards.
Imara SP Reid said in its daily Market Snapshot that marginal profit taking was to be expected after the brisk advances of the past few days, which pushed the All-share index past the 54 000 mark for the first time on Thursday.
By midday the index was hovering just above 54 000 on 54 007 points, 0.47% lower than Thursday’s new record of 54 262 points. At that stage the Top 40- index, which was also on a high on Thursday, was 0.52% softer at 47 755 points.
Analysts said investors are waiting for the latest US inflation figures, which will be announced later on Friday. This can give new indications of what could happen to US interest rates as well as the dollar, which is currently under some pressure. Any rise in interest rates and a strengthening of the dollar will have a severe impact on emerging markets.
Equity markets in Britain, France and Germany also fell sharply on concerns about slow progress in bailout negotiations between Greece and international creditors, over a deal that would unlock funds for Greece and prevent a default.
READ: Greece may have blown best hope of debt deal
German government bond yields fell to historic lows after the Financial Times reported that the International Monetary Fund rebuffed an informal request by Greek officials to delay loan repayments.
Greek Prime Minister Alexis Tsipras told Reuters on Thursday he was "firmly optimistic" his government would reach an agreement with foreign creditors.
Credit rating agency Standard & Poor's downgraded Greece late on Wednesday, and the country's short-term bond yields soared to 27%.
By midday the Resources index on the JSE lost 0.80%, while the Industrial index traded 0.54% lower and the Financial index was 0.23% softer.
The Resources index was also hit by the stronger rand which traded at R11.91 at midday, as it means mining groups will receive less for their exports which are all priced in dollars.
READ: Rand softens, US inflation in focus
BHP Billiton [JSE:BIL] traded 1.02% lower at R261.66 and Anglo American [JSE:AGL] lost 1.33% to trade at R182.83.
The top platinum shares continued their recovery from record lows. Anglo American Platinum [JSE:AMS] was 2.36% higher at R302.98 at midday, while Impala Platinum (Implats) [JSE:IMP] gained 1.33% to trade at R63.08. Implats has gained more than 5.5% over the past seven days. The platinum price was 0.65% higher on Friday morning at $1 166.75 per ounce.
Sasol’s [JSE:SOL] strong run came to an end on Friday morning when the share price dropped 2.88% to R465.09, after gaining more than 15% over the past week. The share price dropped when crude oil prices fell on Friday, after the Organisation of the Petroleum Exporting Countries said that its output surged in March, adding to a global glut.
READ: Brent crude oil prices fall as OPEC output soars
"It seems Saudi Arabia has not had enough of low oil prices," Singapore-based Phillip Futures said.
The oil price recovered because of a drop in US shale oil production, but it seems that Saudi Arabia wants to keep prices low longer to flush out more opposition from alternative sources of oil production.
Naspers [JSE:NPN], which recovered more than 4% on Thursday after serious profit-taking earlier in the week, lost ground again on Friday morning when the share traded 2.81% lower at R1 888.60.
