The JSE Securities Exchange South Africa (JSE) was flat in noon trade on Thursday after a choppy morning during which the rand dictated the bourse’s direction. Volumes were solid, with more than R1,25-billion worth of shares changing hands by noon.
At 11.57pm the all-share index was flat (+0,02%). The all-share industrial index was a marginal 0,13% weaker, while financials eased a neither-here-nor-there 0,09%. The platinum mining index plunged 1,9% on the back of a softer platinum price, while the banks index was 0,45% weaker. Resources inched up 0,17%, while the gold mining index jumped 0,83%.
The rand was trading at R7,41 to the dollar from R7,38 when the JSE closed on Wednesday, while gold was quoted at $379,40 an ounce from $379,05/oz at the JSE’s last close.
“It’s a rand play story again,” a dealer said.
The JSE opened weaker on the back of the rand’s rally late on Wednesday as well as softer world markets, then spiked as the rand weakened, only to surrender its gains before creeping up slightly again.
“We have seen good volumes going through the market. There are massive volumes in Richemont and BHP Billiton,” the dealer continued.
London-listed diversified resources group BHP Billiton was 24 cents softer at R50,40 and Swiss-listed luxury goods group Richemont was up five cents at R15,21.
London-listed diversified resources group Anglo American added one rand to R138,20.
AngloGold advanced 1,38% or four rand to R294,00 and Gold Fields gained 1,07% or R1,12 to R106,10. Harmony, however, was 29 cents in the red at R113,20 and ARMgold was down 40 cents at R82,60.
The dealer explained that with ARMgold to be removed from the Top 40 index on Monday because of its merger with Harmony, a lot of futures players were caught short ARMgold stock and long the futures, so they had to buy ARMgold to close their positions. At the same time, they were long Harmony stock, which they were therefore selling.
He said that ARMgold would be replaced in the futures baskets by PPC Cement, which joins the Top 40 index on Monday.
“That is the reason why the gap between Harmony is not closing,” the dealer explained.
In terms of the merger, Harmony will acquire ARMgold shares from ARMgold shareholders by issuing two fully paid-up Harmony shares for every three ARMgold shares held.
Other advances on Thursday included synthetic fuels group Sasol, which surged 1,28% or R1,15 to R91,15.
Telecommunications utility Telkom leapt 1,64% or 69 cents to R42,70 and pulp and paper producer Sappi was 65 cents stronger at R101,65.
Remgro climbed 50 cents to R59,70.
On the downside, Impala Platinum fell 1,62% or R9,50 to R575,60 and AngloPlat shed 2,55% or R7,25 to R277,00.
Mining house Kumba retreated 3,13% or R1,25 to R38,70 after its strong run in recent days on the news that the Competition Tribunal had given Anglo American the green light to increase its stake in the company.
On the financial index, Standard Bank slipped 1,32% or 43 cents to R32,05.
Among industrials, MTN Group lost 1,19% or 21 cents to R3,35 and London-listed IT group Dimension Data was 4,01% or 14 cents weaker at R3,35. — I-Net Bridge