The JSE Securities Exchange South Africa (JSE) was weaker, but near its intraday best level, at midday on Monday, helped by a weakening rand and a higher gold price, but hindered by softer world markets. Volumes were fairly light.
At 12.02pm, the all-share index was down 0,47%. The all-share industrial index lost 1,04% in morning trade, while the financial and banks indices fell 0,83% and 1,36% respectively. Resources ticked up 0,18%, with the gold mining index jumping 2,45% and the platinum mining index climbing 0,43%.
The rand was trading at R6,33, little changed from when the JSE closed on Friday, but about eight cents weaker than when the bourse opened, while gold was quoted at $408,12 an ounce from $402,50/oz at the JSE’s last close.
A dealer said that despite the strength in gold shares, their performance was disappointing.
“With the gold price where it is, gold shares should have really taken off. The rand is also weakening. But gold shares are basically where they were in New York on Friday,” he asserted.
He added that there might still be a push for gold counters.
Commenting in the rest of the market, the dealer noted that world markets were down and this weakness had followed through to the JSE.
“It is very, very quiet. The JSE updated systems this morning and a lot of guys had problems. It also seems to be the start of the silly season.”
Gold miner Harmony led the market’s upside and was 3,66% or R3,50 stronger at R99. Gold Fields gained 2,32% or R1,90 to R83,80 and AngloGold advanced 1,9% or R5,70 to R305,70.
Impala Platinum was up 1,69% or nine rand at R543. Platinum earlier briefly broke above the $800/oz level for the first time since February 1980.
Media group Naspers N shares notched up 5,18% or R2,23 to R45,25.
On the downside, Swiss-listed luxury goods group Richemont retreated 2,75% or 43 cents to R15,22. Cellular network operator MTN Group was 2,5% or 71 cents weaker at R27,69 and telecommunications group Telkom slipped 2,16% or R1,40 to R63,50.
Standard Bank slumped 2,81% or R1,11 to R38,39 and microlender ABL dived 13,85% or R1,35 to R8,40. However, this weakness was to be expected as ABIL went ex-dividend of R1,31.
London-listed diversified resources group Anglo American was down 90 cents at R134 and BHP Billiton was 40 cents softer at R51. — I-Net Bridge