The JSE Securities Exchange South Africa (JSE) slipped into the red at the opening on Tuesday, as a firmer currency weighed on heavyweight rand hedge stocks. Early volumes were boosted by telecommunications utility Telkom (TKG), which finally made its debut on the bourse.
By 0918, the all share and all share industrial indices were down 1,17% and 1,08% respectively. Financials were 0,30% weaker. Resources retreated 1,69% in early trade, with the gold mining index losing 0,99% and the platinum mining index dipping 0,46%. The IT index shed 0,89%.
The rand was trading at 7,9180 to the dollar from 8,0300 when the JSE closed on Monday, while gold was quoted at $350,40 an ounce, up $5 from the JSE’s last
close.
A dealer said that Telkom’s listing had been quite well received by the market.
“People didn’t know what to expect. Telkom shares are up from the listing price, but have started easing back a bit,” she said.
After listing at R28, Telkom reached an intraday high of R29,20 and was trading at R28,35 at 0932. 2,7-million shares had traded, making Telkom by far the most active share in terms of volume as well as value traded.
The dealer said on the whole, the JSE had had a pretty negative start.
“The rand is quite a bit stronger and all the dual-listed and resources stocks are down,” she said.
She said that even the higher gold price was not helping gold shares as the rand was having more of an impact there. London-listed diversified resources group Anglo American (AGL) led the downside of the market, falling 2,18% or R2,60 to R115,40.
BHP Billiton (BIL) was 2,60% or R1,10 weaker at R41,15. On the gold mining index, Harmony (HAR) was under pressure and shed 2,10% or R2,30 to R107,10.
Swiss-listed luxury goods group Richemont (RCH) led decliners on the industrial index and was 3,06% or 41 cents weaker at R13.
On the financial index, London-listed Old Mutual (OML) was down 1,45% or 15 cents at R10,20 and Remgro (REM) was 2,40% or R1,40 weaker at R57.
Leading the upside of the market was Steinhoff (SHF), which climbed 1,85% or 10 cents to R5,50. On Monday, Steinhoff reported headline earnings per share of 52 cents compared with 43 cents per share for the previous comparable half-year–a 21% increase. – I-Net-Bridge