The JSE Securities Exchange South Africa headed south at the start on Monday, with a stronger rand taking its toll on heavyweight dual-listed and resources stocks. With many players still on holiday, volumes remained light.
By 0919, the all share and all share industrial indices were 0,66% and 0,79% weaker respectively. Resources retreated 0,98%. The platinum mining index was down 1,29%, but the gold mining index was flat (-0,08%). Financials were also flattish (+0,11%), while the banks index was 0,39% better.
The rand was trading at 6,49 per dollar from 6,6260 when the JSE closed on Friday, while gold was quoted at $417,25/oz from $415,20/oz at the JSE’s last close.
“It is very quiet. The JSE is down because of the rand, but volumes are very low,” a dealer said.
He continued that banking group Nedcor was up fairly strongly on a media report that its parent company Old Mutual was planning to sell its stake in the group, even though few people really believed this.
“It is just an excuse to mark up the stock. Nedcor makes up most of Old Mutual’s embedded value. Also, Old Mutual has just pumped two billion rand into Nedcor, so why sell it?”
Nedcor shares were 3,12% or R2,10 stronger at R66,50, while London-listed Old Mutual dipped four cents to R11,15. Dow Jones Newswires reports that The Business newspaper reported on Sunday that Old Mutual had approached several leading international banks to help sell its stake in Nedcor.
The paper said the move would trigger a 2-billion pound sterling bid for Nedcor, with the UK’s Standard Chartered and HSBC and US bank Citigroup thought likely to be interested.
Nedcor, 53% owned by Old Mutual, is one of South Africa’s biggest lenders, but recently required a 180-million pound sterling cash injection from its parent.
Standard Bank was up 20 cents at R39,90.
On the downside, London-listed diversified resources group Anglo American was off 84 cents at R144,16. BHP Billiton lost 2,22% or R1,30 rand to R57,20.
Synthetic fuels group Sasol slipped 1,04% or R1,01 to R95,69. AngloPlat plunged 2,92% or R8,50 to R283, but only 20 shares had traded.
On the industrial market, Swiss-listed luxury goods group Richemont retreated 1,94% or 31 cents to R15,70.
Pulp and paper producer Sappi shed 2,07% or R1,90 rand to R90 after going ex-dividend of R200,17 cents (29 US cents).
Brand management group Barloworld was down 1,24% or 88 cents at R69,81 after going ex-dividend of two rand and food group Illovo was five cents weaker at R6,95 after going ex-dividend of 18 cents.
Tiger Brands tumbled 2,31% or 1,85% to R78,25 after going ex-dividend of R2,11 and packaging group Nampak plunged 3,76% or 50 cents to R12,80 after going ex-dividend of 47,2 cents.
Dow Jones Newswires reports that US Stocks surged in early trading Friday on upbeat economic news. But investors later took some profits in blue chips, leaving prices mixed.
The Dow lost 44,07, or 0,4%, to 10409,85, but gained 85,18, or 0,8%, for the week.
The Nasdaq Composite Index rose 3,31, or 0,2%, to 2006,68, part of a weekly gain of 33,54, or 1,7%. And the Standard & Poor’s 500 Index shed 3,43, or 0,3%, to 1108,48, but added 12,60, or 1,1%, during the week. – I-Net Bridge