JSE flat after weak opening

A weaker rand offset the JSE’s earlier losses on Tuesday and the bourse was flat by midday. The JSE initially opened weaker following an overnight drop on Wall Street.

At noon, the JSE’s all-share index was barely changed (+0,02%).

The gold mining index climbed 0,62%, and resources lifted 0,24%, while the platinum mining index was 0,18% better. Industrials were off 0.05%, financials gave up 0,4%, while banks lost 1,72%.

The rand was bid at 6,98 to the US dollar from 6,81 when the JSE closed on Monday, while gold was quoted at $820,95 a troy ounce from $829,80/oz at the

JSE’s last close.

One trader said that the market didn’t really react much to local GDP data, but was rather looking at what the rand was doing.

“The weaker rand is supporting the local market,” he said, adding that it was holding up Anglo American and BHP Billiton.

“But in the short-term, the JSE could continue on the downside, and if the US shows weakness later, the guys will want to get out,” he said.

“Everyone is concerned about the rand. There are possible interest rate hikes, but yet the rand is weakening,” he explained.

Among gold counters, AngloGold Ashanti was four cents in the black at R315,01 and Goldfields climbed R1,74, or 1,46%, to R120,79.

Resources group Anglo American inched up 45 cents to R418, while BHP Billiton advanced R2,38, or 1,08%, to R222,78, but Sasol fell R3,98, or 1,15%, to R343,02.

Among platinum counters, Anglo Platinum rose R11,53, or 1,27%, to R922,53, but Impala Platinum was off R1,35 to R226,65.

Diversified industrial group Barloworld shed 24 cents to R118,82 but Remgro improved R3, or 1,55%, to R196. Just after the market closed on Monday, Remgro reported a rise in diluted headline earnings per share from 659,8 cents to 827,7 cents for the six months ended September.

Brewer SABMiller edged up 43 cents to R185,45.

Elsewhere, media and entertainment group Naspers pulled back R4,12, or 2,3%, to R174,88. It earlier reported a rise in diluted headline earnings per share to 448 cents for the six months ended September from 415 cents a year ago. Avusa, previously known as Johncom, was 90 cents lower at R98,90.

Fixed line operator Telkom retreated R3,26, or 1,98%, to R161,50 and mobile operator MTN Group declined R1,55, or 1,27%, to R120,20.

Among banks, Absa was down R3, or 2,4%, to R122, and Standard Bank dipped R1,18, or 1,11%, to R105,14. - I-Net Bridge