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Johannesburg - The JSE added to earlier losses at noon on Wednesday, with resources counters leading the downside. Both resources and platinum indexes dropped more than 2%, helping pull the all share index more than 300 points lower.
European and Asian shares showed weaker undertones, worsening negative sentiments on the local market, a trader said.
By 12:06 local time the JSE all share index was down 1.04%, with platinum miners slipping 2.56% and resources falling 2.04%. Gold miners remained flat (-0.04%). Industrials dropped 0.56% and banks shed 0.24%, while financials were flat (-0.04%).
The rand was bid at 6.73 to the dollar from 6.69 at the JSE's close on Tuesday. Gold was quoted at US$1 383.86 a troy ounce from US$1 388.91/oz at the JSE's previous close, while platinum was at $1 735.00/oz from $1 756.50/oz before.
Commodity prices pulled resources stocks lower, a trader said. The dollar's strengthening against a basket of currencies added to the weakness in commodities, the trader said.
Dow Jones Newswires reports that European stocks fell on Wednesday, with some traders unconvinced that the world economy is truly on the road to recovery.
Metals and mining stocks led the declines after commodity prices fell in the US and Asia. In London, the FTSE 100 fell 0.31%.
"We remain respectful of the firming in US growth expectations seen of late," said Lloyds Bank, following the publication of the minutes of the latest Federal Open Market Committee meeting. "However, a failure to secure self-supporting data momentum has scope to see the impacts of a potentially premature rise in rates left open to question."
Asian stock markets were mostly lower on Wednesday, with resource stocks losing ground due to weakness in gold and oil prices on Tuesday.
Japan's Nikkei Stock Average lost 0.17%, but in Hong Kong, the Hang Seng was 0.38% firmer. Regional resource-related stocks were broadly lower after weaker gold and oil prices on Tuesday.
