A combination of the stronger currency and weaker resources stocks dragged the JSE Securities Exchange South Africa (JSE) into the red at noon on Monday.
At 1206 the all-share index was 0,23% weaker, the all-share industrial index slumped 0,24%, the resources index gave up 0,51%, the gold index fell 2,16%, the platinum index shed 0,75% and the banks index was 0,18% in the red. Only the financial index managed gains, adding 0,29%.
“We are in the red across the board, with the exception of financials, as a result of the renewed strength in the rand as well as pressure on resources counters,” a dealer commented.
He added that the market was characterised by very thin volumes.
“Wall Street had exceptionally low volumes on Friday due to the United States power outage and many local players are sitting back and waiting to see what happens on US markets today.”
Dow Jones Newswires reports that US stocks ended flat as the New York Stock Exchange and Nasdaq Stock Market marked the lightest-volume session of the year after a massive blackout crippled the East Coast.
The power outage in the Northeast kept many traders from reaching their desks, which resulted in a sharp drop-off in trading volume.
The South African rand was marginally firmer in quiet noon trade on Monday on the back of a large dollar export order, which dealers say caught the market a bit off-guard.
The currency moved to an intraday best level of 7,26 to the dollar, and was last trading at 7,2988 from a New York close of 7,3426.
Dual-listed resources heavyweight Anglo American was the biggest drag on the bourse at midday, losing R1 to R134,50, although BHP Billiton limited the losses by adding 1,49% or 69c to R47,10.
Gold counters were taking strain on the back of both the firmer currency and the softer bullion price, which was last trading at $361,55 an ounce from a previous close of $363,55 and an intraday high of $364,10.
Gold Fields was 2,91% or R2,81 weaker at R93,90, AngloGold fell 2,17% or R6 to R271 and Harmony shed 50c to R100,50.
Platinum counters were also taking strain, with AngloPlat giving up 1,06% or R3 to R279 and Impala losing R3 to R509.
Among industrial stocks dual-listed luxury goods group Richemont slipped 9c to R13,40, MTN Group lost 1,09% or 20c to R18,10 and Sappi was 65c lower at R94,75.
Financial counters, particularly life assurance groups, dominated the upside.
Dual-listed Old Mutual surged 4,31% or 45c to R10,90, Sanlam added 4c to R7,20 and Liberty Group gained 28c to R49,28.
Also on the upside Tiger Brands added 1,88% or R1,30 to R70,50, Santam picked up 3,90% or R1,50 to R40, Shoprite surged 2,40% or 15c to R6,40 and Comparex jumped 3,27% or 25c to R7,90. — I-Net Bridge