The JSE Securities Exchange South Africa drifted weaker at the start on Wednesday, with a slightly stronger currency hurting heavyweight rand hedge stocks. Early volumes were once again fairly light, with less than R20-million worth of shares changing hands in the first 20 minutes of trade.
At 09h20, the all share index was down 0,46%. Resources had retreated 0,85%, while the platinum and gold mining indices were 0,98% and 0,45% softer respectively. Financials eased 0,21%, banks were down 0,37% and industrials dipped 0,11%.
The rand was quoted at 6,44 per dollar from 6,48 when the JSE closed on Tuesday, while gold was quoted at $420,70 an ounce from $424,15/oz at the JSE’s last close.
Gold traded above $430/oz on Tuesday for the first time in over 15 years.
“It has been a very quiet opening. The rand is bouncing around a bit. It was stronger and it looked like Billiton and Anglo would be hurt quite hard, but now it is back at 6,46 and they aren’t down that much. The copper and nickel prices were down overnight, which might make things worse for Billiton,” a dealer said.
He continued that the lower gold price was also having a negative effect on the JSE.
“We are expecting updates from a number of retailers on holiday sales. People are expecting them to be pretty good, so a bit of strength might come in there.”
However, the rand was likely to be the main driver behind the bourse on the day.
At 0935, London-listed diversified resources group Anglo American was 60 cents softer at R146,90 and BHP Billiton was down 20 cents at R57,90.
Gold miner Gold Fields was off 90 cents at R94,50.
Swiss-listed luxury goods group Richemont was down 13 cents at R15,65 and London-listed beverages group SABMiller had slipped 42 cents to R67.
Steel producer Iscor weakened 1,45% or 42 cents to R28,60. London-listed financial services group Old Mutual lost five cents to R11,05 and banking group Nedcor surrendered 60 cents to R67,60.
FirstRand fell five cents to R9,15 and Standard Bank slipped 19 cents to R40,25.
Absa, however, advanced 1,12% or 50 cents to a R45,10 to lead the market’s upside. This was Absa’s best level since May 1998.
Transport group Imperial jumped 1,54% or one rand to R66.
The Wall Street Journal reports that US blue-chip stocks stalled on Tuesday, but the surging Nasdaq hit another new two-year high.
The Dow Jones Industrial Average yesterday fell 0,05%, or 5,41 points, to 10,538.66, as an afternoon rally failed to push the index into positive territory. The technology-heavy Nasdaq Composite Index advanced 0,49%, or 10,01 points, to 2,057.37, its highest close since January 4, 2002, and its third consecutive daily gain. The Standard & Poor’s 500 Index advanced 1,45 points, or 0,13%, to 1123,67, a new 20-month high. – I-Net Bridge