The JSE Securities Exchange South Africa (JSE) was drifting in the red at midday on Thursday as a strong rand took its toll on a market from which buyers were absent.
Volumes were extremely light, with just more than R400-million-worth of shares changing hands.
At 12.08pm, the all-share and all share industrial indices were 0,36% and 0,43% weaker respectively. Financials fell 0,65%, while the banks index was down 0,58%. Resources retreated 0,17%, the gold mining index was flat (-0,08%), but the platinum mining index inched up 0,25%.
The rand was trading at R7,32 to the dollar from R7,34 when the JSE closed on Wednesday, while gold was quoted at $371,75 an ounce from $371,10 at the JSE’s last close.
A dealer said that the JSE had seen a very slow morning.
“We had a positive start after the good performance of gold stocks in the United States overnight, but with the rand’s strength, the market has come back a bit. Precious metals prices are also a bit lower,” he commented.
Platinum, at $708,50/oz, was about $4,50 weaker than at the JSE’s last close.
The dealer added that London-listed diversified resources group BHP Billiton was stronger after reporting better-than-expected results before the opening.
BHP Billiton shares were trading at R46,90, up 46 cents from their previous close.
The group reported basic earnings per share of 30,9 US cents for the year to June 2003 from 31,0 US cents before.
Analysts surveyed by I-Net Bridge had expected 30,3 US cents with forecasts ranging from 28,9 US cents to 33 US cents.
The dealer continued that Impala Platinum’s results also exceeded market expectations — basic headline earnings per share for the year to June came in at 5 140 cents, down from 6 877 cents previously.
Analysts polled by I-Net Bridge had expected the company to declare headline earnings per share of 5 030 cents.
Impala shares were up R1,50 at R552,50 after trading as high as R564,00.
Retailer Pepkor rocketed 5,15% or 36 cents to R7,35 after the company on Wednesday reported a 57% decline in its headline earnings per share (HEPS) for the year ended June 30 2003, to 54 cents from 124,7 cents a year earlier. The group declared a final dividend of 21 cents per share, for a total dividend for the year of 34 cents, up 42% on the 24 cents declared in 2002.
Other shares to advance on Thursday morning included brand management group Barloworld, which was 36 cents better at R59,76.
Standard Bank was 10 cents stronger at R32,70.
ABI advanced 2,50% or R1,50 to R61,50.
AngloGold eked out a 30 cent gain to trade at R278,30 and Harmony inched up 30 cents to R103,30. Gold Fields, however, dipped 20 cents to R97,60.
Swiss-listed luxury goods group Richemont retreated 1,32% or 19 cents to R14,21 and pulp and paper producer Sappi was 2,38% or R2,25 weaker at R92,25.
London-listed diversified resources group Anglo American was off 91 cents to R133,99.
FirstRand fell seven cents to 7,58 rand and Absa was 35 cents in the red at R35,75.
The dealer said that the JSE was still trying to digest economic data released earlier in the week, particularly CPIX figures released on Tuesday and PPI on Wednesday.
The Labour Day holiday in the US on Monday was also likely to contribute to low volumes for the rest of the week.
Data released on Tuesday showed South Africa’s CPIX inflation (headline inflation excluding mortgage costs), the measure used by the Reserve Bank for inflation targeting purposes, was up 6,6% year-on-year (y/y) for metro and other areas in July 2003 compared with 6,4% in June. CPIX was up 1,1% month-on-month (m/m) compared with a 0,3% decline m/m in June.
CPIX was expected to ease to a median of 6,2% y/y from June’s 6,4% y/y, The range of forecasts was from 5,6% y/y to 6,4% y/y.
South African producer prices for all commodities rose 1,5% in the 12 months to end July from a 2.3% increase for the 12 months to end July, Statistics South Africa said on Wednesday. On the month, they were up 0,4% in July on an actual unadjusted basis from a rise of 1,4% in June.
South Africa’s July producer price index (PPI) was expected to increase by a median of only 1,4% y/y, according to an I-Net Bridge survey of private sector economists. The range of forecasts was from -0,8% y/y to 1,8% y/y. — I-Net Bridge