The JSE Securities Exchange (JSE) was deep in the red in noon trade on Thursday, in line with world markets. However, gold stocks managed to eke out gains after being hammered earlier in the week.
By 11.57am, the all-share index was down 0,96%. Industrials and financials fell 0,69% and 0,42% respectively, while the banks index weakened 0,47%. Resources retreated 1,56%, but the gold mining index climbed 0,56% and the platinum mining index picked up 0,46%.
The rand was quoted at R6,07 per dollar from R6,11 when the JSE closed on Wednesday, while gold was quoted at $395,55, little changed from its level at the JSE’s last close.
“The market isn’t looking great. Resources are all down big time in London — guys there say this is on the Dow, which was up when United Kingdom markets closed, but ended sharply weaker. The FTSE is down quite sharply,” a dealer said.
He added that the rand was slightly firmer, which also added to the negative picture.
The dealer said that despite the gold price being fairly low, gold stocks were still up modestly after being hammered earlier in the week. The index was down more than 5% on Monday.
London-listed diversified resources group Anglo American plunged 3,05% or R3,87 in morning trade to R123,15 and BHP Billiton tumbled 2,24% or R1,25 to R54,60.
However, gold miner Harmony jumped 1,62% or R1,01 to R63,40, Gold Fields climbed 50 cents to R58 and AngloGold Ashanti ticked up R1,05 to R195.
Impala Platinum improved four rand to R461 and AngloPlat inched up 25 cents to R227,25.
On the industrial market, London-listed beverages group SABMiller slipped 68 cents to R79,20, but its 73,5% subsidiary ABI soared 2,55% or two rand to R80,50 after earlier trading at a best-to-date R80,51.
ABI shares rocketed 14% on Wednesday in the wake of an announcement by SABMiller that it is investigating proposals that may lead to it making an offer to ABI minorities. It indicated it was considering offering R78 a share, attaching a R3,2-billion price tag to the offer.
There has been speculation that SABMiller might take out ABI minorities since it sold its 21% stake in Edcon earlier this month.
The dealer said that the performance of ABI shares suggested that there was a view in the market that there might be room to negotiate on SABMiller’s offer.
Swiss-listed luxury goods group Richemont dropped 1,34% or 22 cents to R16,20 and pulp and paper producer Sappi shed 1,04% or one rand to R95.
Hospital group Netcare slid 2,49% or 11 cents to R4,31.
Media group Naspers slipped 2,03% or 89 cents to R43 and London-listed IT group Dimension Data dived 3,45% or 11 cents to R3,08.
Cellular network operator MTN Group ticked up 10 cents to R27,70.
Financials to fall included Standard Bank, which was 1,12% or 49 cents in the red at R43,20, and RMB Holdings, which surrendered 1,18% or 19 cents to R15,91.
London-listed Old Mutual lost six cents to R11,42 and investment holding company VenFin slumped 1,51% or 30 cents to R19,60.
Nedcor, however, bounced 1,47% or 85 cents to R58,85 and Sanlam was three cents stronger at R8,61. — I-Net Bridge