NOT even a holiday in the US could slow down the pain felt on the JSE yesterday as dramatic news of a potential debt default in Dubai whacked riskier markets.
Some analysts said that Dubai’s problems could weigh on the global recovery, to which SA is very closely hinged.
A weak Asia did not help matters locally either. The Nikkei lost 58 points to 9383 and Hong Kong shares were among the region’s worst- performing as selling pressure on Chinese banks continued for a third day on persistent fears they may need to raise funds to meet potential tougher regulatory requirements.
At 5pm, the JSE was off by a sickly 464 points, or 1,69%, with resources leading the pack with a loss of 1,87%.
Golds were up by 0,87% as another record was breached but platinums fell 0,87%.
Industrials lost 1,46%, while banks gave up 1,69% and financials dropped 1,74%.
A local trader said the US holiday was keeping volumes down but there was concern in markets around the world of a debt bubble bursting in Dubai. (PPI) registered deflation of -3.3% year-on-year (y/y) in October from -3.7% y/y in September, Statistics South Africa (Stats SA) data yesterday showed.
The PPI decreased 0.1% on a monthly basis after September's monthly decrease of 3.2%.
The PPI was expected to have decreased at 3.1% y/y according to a survey of 10 leading economists by I-Net Bridge, with forecasts ranging from -2.8% to -3.7% y/y.
Media giant (NPN) yesterday reported headline earnings per share of R6,48 for the six months ended September 30, up 36% from R4,76 earlier.
Fully diluted core HEPS of R6,34 were reported, from R4,70 earlier.
Earnings per ordinary share were at R4,24, from R10,15 earlier, with diluted EPS of R4,15, from R10,02 previously.
Revenue was up to R13,5bn, a rise of 6% from R12,65bn earlier. The group made an operating profit of R1,93bn, from R1,66bn previously. The share closed down R4,15, or 1,44%, at R283,85.
Global resources giant (BIL) said yesterday that it planned to invest about 10bn in capital and exploration expenditure during the 2010 financial year. The share closed R5,83, or 2,48%, lower at R228,90.
Among the heavyweights, (AGL) lost R10,01 , or 3,04%, to R318,99, (SOL) was down R5, or 1,66%, to R297 and Compagnie Richemont (CFR) shed 48c, or 1,92%, to R24,50.
Iron Ore (KIO) lost R10,18, or 3,84%, to R255 and (EXX) was down by R2,81, or 2,92%, to R93,49.
(WSL), the AltX- listed coal logistics company, said yesterday that it expected its headline earnings per share to decrease by between 60% and 75% in the six months to end- September. The company said its earnings per share were expected to decrease by between 40% and 55%.
The share was down 7c to 74c by the close.
Among the miners, (GFI) was up 160c, or 1,45%, to R111,60 , while Harmony (HAR) added 249c, or 3,06%, to R83,99.
Junior gold producer Simmer & Jack Mines ( , SIM) yesterday said it had launched a high court application seeking to stop Xelexwa Investment Holdings and its joint provisional liquidators from convening a meeting to remove the directors of its company.
Among industrials (SAB) receded by R2 to R218, (BVT) lost 176c, or 1,48%, to R117, (BAW) was off by 195c, or 3,87%, to R48,50 and (BTI) was R3,60, or 1,53%, lighter at R231.
Mobile carrier (VOD) lost 180c, or 3,03%, to R57,70.
Trade union Solidarity yesterday urged (TKG) to halt the retrenchment of what it estimated to be 4000 temporary and contract workers and called on the telecommunications group to follow the correct Section 189 process.
Telkom ended the day down 6c to R38,69.
Meanwhile, (AMS) was down by R8,10, or 1,07%, to close the day at R746,50. I-Net Bridge
(LON). In terms of the wage agreement, employees will receive a wage increase of 9.5%, backdated from October this year. lost seven , or 3.15%, to 215.
Among the banks, (ASA) stood out as it reduced by 3.40 , or 2.66%, to 124.20.
In news, short-term insurer (SNT) said yesterday overall underwriting conditions remain challenging, although it has achieved an improvement in margins during the second half to date. The company said in an operational update that the absence of very large industrial claims in the corporate business unit during this period contributed largely to this improvement. Its share bucked the trend to end up two , or 2.11%, at 97. On the retail front, Truworths (TRU) was in the red by 160c, or 3.76%, at 41.
Foods (ARL), meanwhile, also stood out with a 3.40 loss, or 3.24%, to 101.50.
Construction stock Murray and Roberts (MUR) also had a tough day as it lost 2.40 , or 4.71%, to 48.60.
The JSE Thursday approved the transfer of Resource's (PAN) listing from AltX to the gold mining sector of the main board of the JSE.
The move will take effect from the commencement of business on Tuesday, 1 December 2009. Accordingly, the JSE will become the company's dual primary regulator. It ended down just one cent at 90c.