The JSE Securities Exchange South Africa (JSE) was awash with red at midday on Monday, with weak world markets and a robust rand taking their toll on local stocks. While weakness was most pronounced on the Top 40 index, selling was seen almost across the board, with advancers outnumbering decliners on the all-share index by more than three to one.
At 11.55am, the all-share and all-share industrial indices were 1,48% and 1,12% weaker respectively. Resources retreated 2,14%, with the platinum mining index losing 1,23%. Financials fell 0,68%, the banks index eased 0,38%, but the gold mining index ticked up 0,39%.
The rand was trading at R6,71 per dollar from R6,74 when the JSE closed on Friday, while gold was quoted at $397,85 an ounce from $396,95/oz at the JSE’s last close.
“The market is looking terrible. The Dow was down on Friday, the Hang Seng and Nikkei were down sharply this morning and we have followed suit,” a dealer said.
He continued that European markets and United States futures were also under pressure.
“The gold price is looking good — it looks like it wants to test $400/oz and we might see this today — but the strong rand is keeping gold shares in check,” the dealer commented.
Gold traded as high as $399,55/oz on Monday morning.
While Harmony was up 1,68% or R1,70 at R102,75, AngloGold and Gold Fields were flattish.
London-listed diversified resources group Anglo American, however, tumbled 2,8% or R4,10 to R142,30 and BHP Billiton plunged 4,18% or R2,20 to R50,40.
Synthetic fuels group Sasol slipped 1,78% or R1,61 to R89.
AngloPlat was down 1,58% or R4,50 at R281 and Impala was off 1,08% or R6,50 at R593,50.
On the industrial market, Swiss-listed luxury goods group Richemont was 2,02% or 33 cents softer at R15,98. London-listed beverages group SABMiller weakened 1,47% or 93 cents to R62,50 and pulp and paper producer Sappi shed 1,38% or R1,22 to R87,50.
On the financial front, London-listed Old Mutual was 2,41% or 28 cents in the red at R11,34.
Banking group FirstRand fell 1,11% or nine cents to R8,01 and Nedcor was down 65 cents at R73,35.
However, Absa added 15 cents to R39,30 on expectations of good results to be released next week.
The top performer on the all-share index was South Africa’s largest microlender, African Bank Investments Limited (Abil), which rocketed 4,97% or 41 cents to R8,66 after trading as high as R8,70 — its best level since January 2002 — earlier in the morning.
“Abil is shooting up because of the dividend. People were expecting the 56 cents final dividend, but Abil is also giving a special dividend of one rand,” the dealer explained.
Before the opening, Abil reported a 34% increase in headline earnings per share to 140,4 cents for the year ended September 30 from 104,4 cents a year ago. A final dividend of 31 cents per share was declared, making a total ordinary dividend of 56 cents per share. In addition a special dividend of 100 cents per share was approved.
The I-Net Bridge consensus forecast was for Heps of 140 cents per share and a dividend of 54 cents. — I-Net Bridge