After spending most of the morning in the black, the JSE Securities Exchange South Africa (JSE) drifted into the red just before noon on Tuesday on the back of futures-related selling and European markets coming off their highs. Gold stocks, which were weaker on the back of a lower bullion price and poor performance by their ADRs in the United States overnight, also weighed on the local bourse.
At 11.58am, the all-share index was down 0,29%. Financials fell 0,25%, with the banks index surrendering 0,49%. Resources retreated 0,52% and the gold mining index gave up 1,29%, but the platinum mining index gained 0,45%. The all-share industrial index was flat (-0,02%).
The rand was trading at R6,72 per dollar from R6,65 when the JSE closed on Monday, while gold was quoted at $392,12 an ounce from $395,13/oz at the JSE’s last close.
“The market traded better for most of the morning, but we are seeing some futures guys coming in and selling the market and while European markets are still up, they are coming off their highs,” a dealer said.
He said that with gold trading as low as $388/oz in the US overnight, gold ADRs, particularly Gold Fields, had come under a bit of pressure there.
Gold Fields was down 1,69% or R1,50 on the JSE at R87,50, while AngloGold was down 1,69% or R5 at R290. Harmony, however, was unchanged at R99,80.
London-listed diversified resources group Anglo American dipped 30 cents to R140,20, while synthetic fuels group Sasol slumped 2,45% or R2,16 to R86,10.
Impala Platinum led the upside, jumping R5,45 to R591.
On the industrial market, London-listed IT group Dimension Data was up 4,74% or 18 cents at R3,98.
Before the opening, the group reported a loss per share before goodwill amortisation and exceptional items of 2,7 US cents per share for the year ended September 30 from earnings per share of 2,3 US cents a year ago.
“I wouldn’t read too much into Didata’s performance. It might be recovering after its thumping yesterday,” the dealer commented.
Pulp and paper producer Sappi was 80 cents stronger at R87,80 and media group Naspers notched up 1,15% or 40 cents to R35,11.
London-listed beverages group SABMiller, however, shed 13 cents to R61,87.
Retailer JD Group was down 1,79% or 70 cents at R38,50.
While the group was due to report its results before the opening, this was delayed until December 8.
The group instead issued a trading update in which it said it expects its headline and respective earnings per share for the year to August to be substantially higher than in 2002, which is in line with analysts expectations.
“JD Group is down on a combination of profit taking and the trading statement. This was inline with expectations, but the fact that the results have been delayed has caused a stir in the market,” the dealer commented.
On the financial front, banking group Nedcor fell 1,52% or R1,05 to R68, after losing over 6,5% on Monday, when it said in a trading update that core earnings for the second half of the year to December 31 2003 would be materially lower than analysts’ forecasts.
Standard Bank was 2 cents softer at R34,95 and Absa was off 13 cents at R39,85. — I-Net Bridge