The JSE Securities Exchange South Africa (JSE) was weaker in noon trade on Wednesday, with a robust rand taking its toll on heavyweight dual-listed and resources stocks. A weaker Dow overnight added to the negative sentiment and decliners outnumbered advancers on the all-share index by amount two to one.
At 11.47am, the all-share index was down 0,41%. Resources were 0,62% in the red, with the gold and platinum mining indices losing 0,83% and 0,11% respectively. Industrials eased 0,25%, financials fell 0,24% and the banks index was down 0,58%.
The rand was quoted at R7,12 to the dollar from R7,14 when the JSE closed on Tuesday, while gold was quoted at $412,85 an ounce from $408,70/oz at the JSE’s last close.
The rand firmed sharply late on Tuesday afternoon after a dollar sell-off at the R7,25 level, which currency traders had thought would hold, saw stop losses triggered. It was quoted as low as R7,0250 on Tuesday morning.
“The market is pretty quiet. We’ve got the normal rand-dominated scenario, with resources and other rand hedge stocks under pressure. The Dow was down last night and selling has stretched to the rest of the market — there is definitely a contagion,” a dealer said.
He added that while the gold price was up, the stronger rand was keeping gold stocks down.
Decliners in morning trade included synthetic fuels group Sasol, which slumped 3,11% or R3,40 to R106,10.
AngloPlat was down 1,21% or four rand to R326 and Impala slipped 1,18% or R6,99 to R583.
Gold Fields weakened 1,71% or R1,70 to R97,50 and AngloGold was off R1,30 at R306.
Decliners on the industrial market included pulp and paper producer Sappi, which shed 2,77% or R2,80 to R98,20.
Cellular network operator MTN Group was down 1,15% or 31 cents at R26,70 and Telkom was 1,43% or 90 cents weaker at R62,10.
Hospital group Netcare retreated 2,08% or 10 cents to R4,07 and London-listed IT group Dimension Data dived 3,2% or 20 cents to R6,05.
Technology company Altech tumbled 4,48% or R1,50 to R32 and its parent company Altron was down 2,57% or 29 cents to R11,01.
However, Bytes Technology Group, which is also a subsidiary of Altron, rocketed 7,14% or 40 cents to six rand.
Before the opening, Altron said in a trading update that its and Altech’s headline earnings for the year ended February 2004 would be up to 10% lower than in the prior year. However, it also said that Bytes’s earnings would be between 10% and 30% higher.
The dealer said that the trading update suggested that Altech and Altron’s results would be below expectations and the market had taken umbrage.
Financials to fall included Standard Bank, which slipped 1,39% or 55 cents to R38,95. Nedcor dipped 45 cents to R64,05 and its parent company Old Mutual was down 70 cents at R12,66.
On the JSE’s upside, London-listed beverages group SABMiller defied the strong rand, surging 1,76% or R1,24 to R71,75. Swiss-listed luxury goods group Richemont climbed 14 cents to R18,34.
Pretoria Portland Cement picked up 1,54% or two rand to R132 and financial services group Sanlam firmed 1,4% or 12 cents to R8,67. — I-Net Bridge