The JSE Securities Exchange (JSE) was flat in noon trade on Tuesday as a slightly softer rand offset the negative effect of poor performances of heavyweight dual-listed stocks offshore. With no fresh news to drive the market, volumes were light.
By 11.58am, the all-share and all-share industrial indices were a marginal 0,11% and 0,14% firmer respectively. The resources and gold mining indices were flat, but the platinum mining index jumped 1,81%. Financials picked up 0,26%, but the banks index eased 0,12%.
The rand was quoted at R5,94 per dollar from R5,89 when the JSE closed on Monday, while gold was quoted at $405,30 an ounce from $405,45/oz at the JSE’s last close.
“The market is a bit mixed. The rand is a bit weaker, but there is some negativity coming through from across the water,” a dealer said.
He added that the JSE was battling to find direction and volumes were very light.
The dealer said that gold miner Harmony had come under a bit of pressure on a news report that more than 60% of its recent production came from loss-making mines. The article also carried a forecast that Durban Roodepoort Deep (DRD) was to report a headline loss, so it was also taking strain.
“The rand gold price is around R78 a kilogram and Harmony needs a rand gold price of around R82 rand/kg, so it is just too low for these guys. Gold Fields only needs R67 rand/kg and AngloGold Ashanti R62 rand/kg,” the dealer commented.
Harmony shares were 20 cents softer at R59 after earlier trading as low as R58 — their worst level since December 2001.
DRD was down 2,76% or 40 cents at R14,10, after early trading as low as R14 — also its weakest since December 2001.
“The rest of the golds are looking slightly better — they were smashed yesterday [Monday],” the dealer said.
While Gold Fields touched its weakest since January 2002 when it traded at R54,50, it was last quoted 31 cents firmer at R55,40. AngloGold Ashanti added 50 cents to R191,50.
AngloPlat surged 2,09% or R4,50 to R219,50 and Impala leaped 1,97% or R8,49 to R439,50.
Synthetic fuels group Sasol soared 1,97% or R1,93 to R100,14.
However, BHP Billiton lost 1,09% or 60 cents to R54,25 and Anglo American dipped 25 cents to R123,35.
On the industrial market, Swiss-listed luxury goods group Richemont eased five cents to R15,79.
Steel producer Iscor was 1,67% or 65 cents softer at R38,35 and media group Naspers slipped 25 cents to R42,50.
Furniture retailer JD Group gave up 1,12% or 50 cents to R44 and Edcon dropped R1,40 to R158,60.
However, services group Bidvest jumped 1,29% or 68 cents to R53,29 and London-listed beverages group SABMiller was 30 cents stronger at R79,50.
Brand management group Barloworld was 48 cents better at R67,60 and pulp and paper producer Sappi climbed 32 cents to R95,11.
Cellular network operator MTN Group was up 15 cents at R27,50.
On the financial front, banks were marginally weaker, with Standard Bank dipping eight cents to R42,71, FirstRand falling two cents to R9,98, Absa surrendering 21 cents to R50,80 and Nedcor easing 15 cents to R56,15.
Liberty Group lost 40 cents to R48,60.
London-listed Old Mutual, however, rang up 1,65% or 18 cents to R11,08 and Sanlam was six cents stronger at R8,46.
Investment company Remgro rose 32 cents to R75,20.
Financial services group Alexander Forbes advanced 2,94% or 30 cents to R10,50 and investment holding company VenFin rallied 1,18% or 23 cents to R19,65.
It was announced before the opening that Alexander Forbes will buy back the £100-million exchangeable bonds held by VenFin, ahead of the maturity date of the bonds in September 2005, the companies said on Tuesday. — I-Net Bridge