The JSE Securities Exchange South Africa (JSE) retained its softer tone at midday on Tuesday, with a firmer currency taking its toll on heavyweight rand hedge stocks.
The main features in the morning session were telecommunications stocks, which continued the strength seen during Monday’s session.
At 12.07pm, the all-share index was down 0,67%, resources had retreated 1,41%, while the gold mining index had lost 1,03%. Industrials were flat (up 0,10%), as was the platinum mining index (down 0,07%). Financials were down 0,41%, while banks were off a mere 0,08%.
The rand was quoted at R7,17 per dollar from R7,22 when the JSE closed on Monday, but well off the levels near R7,30 seen on Monday, while gold was quoted at $404 an ounce from $407,20/oz at the JSE’s last close.
Dealers said that the relatively firmer rand continued to weigh on dual-listed and resources stocks, while the softer bullion price was putting a dampener on gold counters.
“There is no great excitement this morning. The main feature is the TMT sector, with most of the shares in that sector up,” said an equities trader.
Telecommunications giant Telkom was up 335 cents, or 4,66%, to R75,25 — a fresh high. A total of 359Â 288 shares valued at R26,6-million changed hands in 196 deals, making it the sixth most active share traded on the day.
Cellular group MTN rose 125 cents, or 4%, to R32,50, as R53,7-million-worth of shares changed hands in 383 deals, making it the third highest value traded for the session and taking it to a year’s high.
Johnnic was 5,23%, or 80 cents, to R16,10, while Johncom was up 8,7%, or 200 cents, to R25 — also a new high.
Elsewhere, London-listed Anglo American, was down 1,81%, or 300 cents to R162,50, while BHP Billiton was down 122 cents, or 1,97%, at R60,58.
Among gold counters, Gold Fields gave up 0,93% or 90 cents to R96,10 and AngloGold shed 295 cents, 0,99%, to R195.
Harmony tumbled 1,53% or 180 cents to R116,20.
Before the opening, Harmony reported basic earnings per share of 92 South African cents for the December 2003 quarter, from a loss of 24 cents in the previous quarter. Gold analysts had been expecting basic earnings per share of 52 cents.
Harmony reported a headline loss per share for the December quarter of 66 South African cents, down from a 28-cent loss in the September quarter.
Shares to gain included Iscor, which was up 9 cents, or 0,30%, to R29,65. On Monday the steel group warned that its interim earnings for the six months to December 2003 would be substantially or more than 30% down from the previous comparative period.
Iscor cited a fall in domestic steel demand, the effects of the strong rand, the remuneration payment of R613-million made to the LNM Group in terms of the Business Assistance Agreement as well as provisions made for the costs of the restructuring programme to be implemented in 2004 for the expected fall.
Furniture retailer JD Group was up 20 cents, or 0,50% to R40,20, while banking group Absa advanced 1,16%, or 50 cents, to R43,70. — I-Net Bridge