The JSE Securities Exchange South Africa (JSE) was a sea of red in noon trade on Tuesday on the back of a stronger rand and weaker world markets. Shares at the top end of the market, as expected, were hardest hit and only eight shares on the Top 40 index were in the black.
By 12.09pm, the all-share index was down 1,04%. Resources retreated 1,42%, with the gold and platinum mining indices plunging 1,67% and 2,15% respectively. The all-share industrial index surrendered 0,79%, financials fell 0,57% and the banks index dipped 0,19%.
The rand was trading at R7,17 to the dollar from R7,22 when the JSE closed on Monday, while gold was quoted at $386,30 an ounce from $383,75/oz at the JSE’s last close.
“The JSE is trading lower again, in line with European markets as well as Wall Street’s performance overnight. The firmer rand is also spoiling the party somewhat,” a dealer said.
The dealer noted that the rand had moved firmer after CPIX data was released at 11.30am, although currency traders attributed the local movement’s strength more to negative sentiment towards the dollar than the data itself.
“Resources in particular have come under a bit of pressure. We are hostage to the vagaries of the currency,” the dealer continued.
London-listed diversified resources group Anglo American was down 1,44% or R2 at R136,61 and BHP Billiton was 1,11% or 55 cents softer at R48,80.
Gold miner Harmony tumbled 2,84% or R2,35 to R111, while Impala Platinum slumped 2,59% or R14,49 to R546,01.
Decliners on the all-share industrial index included Swiss-listed luxury goods group Richemont, which was 2,14% or 31 cents weaker at R14,15.
Pulp and paper producer Sappi shed 1,01% or R1 to R97,80 and telecommunications group Telkom took a 1,38% or 60 cent knock to trade at R42,80.
London-listed financial services group Old Mutual lost 1,79% or 20 cents to R11 and Sanlam slipped 1,61% or 12 cents to R7,33.
Banking group FirstRand was down 1,04% or eight cents at R7,60.
“ABI is one of the top performers. It said in a trading update that its interim earnings would be materially higher, which means up to 30%. Its parent company, SAB, is lagging somewhat and is down half a percent,” the dealer commented.
ABI shares were up 1,9% or R1,12 at R60,17, but London-listed beverages group SABMiller was 30 cents lower at R54,70.
Other shares to advance included banking group Nedcor, which notched up 1,73% or R1,23 to R72,24.
Retailer Metcash was up 1,49% or three cents at R2,05.
South Africa’s CPIX inflation (headline inflation excluding mortgage costs) was up 6,3% year-on-year (y/y) for metro and other areas in August 2003 compared with 6,6% in July, Statistics South Africa said.
CPIX was up 0,4% month-on-month (m/m) compared with a 1,1% rise m/m in July.
CPIX is the inflation measure targeted by the Reserve Bank for purposes of inflation targeting. — I-Net Bridge