adminthe year if the country’s economic outlook improved sufficiently.
At 9.41am, the all share index was down 1,74 percent at 40 074,54 points, with the blue-chip top 40 index losing 1,84 percent to 35 722,1 points. Gold and bank indices shed 2,49 percent and 2,16 percent respectively, while resources gave up 1,86 percent.
“It is ironic that confirmation of a better economy should hit the stock market, because a better economy means better company earnings, but it is a case of investors getting used to a potential reduction in bond-buying by the Fed and therefore higher bond yields,” Stanlib Wealth Management portfolio manager Paul Hansen said.
US Federal Reserve chairman Ben Bernanke said on Wednesday night that his committee saw the downside risks to the outlook for the economy and the labour market as having diminished since the US’ autumn, adding that inflation over the medium term was anticipated to be at or below its 2 percent target.
Leading European markets were weaker in early trade, as were their Asian counterparts. London’s FTSE 100 index lost 1,19 while Hong Kong’s Hang Seng dropped 2,58 percent.
Among individual shares on the JSE, BHP Billiton was down 2,4 percent to R276,04 and Amplats retreated 2,09 percent to R303,56. Gold Fields was down 4,03 percent to R55,44 and ArcelorMittal SA lost 3,22 percent to R30,39.
FirstRand was down 3,08 percent to R27,36 and Sanlam dropped 3,73 percent to R43,32. — Businessday.
Online Reporter