The JSE Securities Exchange South Africa (JSE) was a mixed bag just before midday on Monday, in trade that was fairly quiet ahead of key economic data releases due out later in the week. While gold stocks dragged on the downside, a weaker rand saw heavyweight dual- listed stocks keep the bourse in the black overall.
At 11.55am, the all-share index was up 0,71%, while industrials were 0,71% stronger. The resources and platinum mining indices were both flat. The gold mining index slumped 1,64%. Financials and banks were 0,3% and 0,67% weaker respectively.
The rand was quoted at R7,24 per dollar from R7,17 when the JSE closed on Friday, while gold was quoted at $406,48 an ounce from $408,90/oz at the JSE’s last close.
“It has been a very slow start to the week ahead of all the data that is due out,” a dealer said. “Gold stocks are under pressure with the lower bullion price — they fell over 2% in dollars in the United States on Friday. On the other hand, Anglo and the dual-listed stocks are better on the weaker rand.”
She continued that telecommunications stocks, which have been attracting investors due to their good growth prospects, had been a highlight.
“Telkom is flying and MTN has come off its highs, but it is still strong.”
The dealer said that hospital group Netcare had also featured on the market’s upside.
“There has been a bit of a bounce in Netcare. It was sold off quiet heavily last week on the drug price news,” she explained.
On January 15, draft regulations were unveiled that will see the listed manufacturer’s selling price of all medicines cut by 50%.
London-listed Anglo American added 1,02% or R1,65 to trade at R163,70 and Swiss-listed luxury goods group Richemont was up 13 cents at R18,01. Anglo earlier traded at its best level since July 2002 of R163,85.
Telkom rocketed 4,26% or R2,89 to R70,79 and MTN Group was 2,83% or 85 cents stronger at R30,85. It earlier traded at R31,30 — its highest level since September 2000.
Hospital group Netcare was 3,3% or 15 cents better at R4,70.
Other solid performers included AngloPlat, which advanced 1,13% or four rand to R359, after touching its highest level since October 2002 of R364,95.
Retailer Foschini firmed 1,45% or 30 cents to R21 — its best since April 1998.
On the market’s downside, Harmony tumbled 2,91% or R3,49 to R116,50, Gold Fields slipped 1,22% or R1,20 to R96,80 and AngloGold weakened 1,4% or R4,21 to R297.
Impala Platinum lost R5,90 to R616.
Banks were unable to sustain Friday’s upward momentum, with FirstRand falling 1,13% or 10 cents to R8,78. Standard Bank dipped 26 cents to R39,85 and Absa eased 15 cents to R43,55. Nedcor, however, inched up 21 cents to R68,01.
Data due out on the local front this week includes consumer inflation data, which is due out on Tuesday, producer inflation data on Wednesday and money supply and trade data are due out on Friday.
Also potentially market moving is the US Federal Open Market Committee announcement on interest rates, which is scheduled for Wednesday, and US GDP numbers to be released on Friday. — I-Net Bridge