The JSE Securities Exchange South Africa (JSE) was weaker just before noon on Tuesday, with a stronger rand weighing on heavyweight dual-listed and resources stocks. Volumes were light and just more than half a billion rands’ worth of shares had been traded.
At 11.54am, the all-share index was 0,42% weaker. Resources were 1,01% in the red, while the gold and platinum mining indices were down 1,28% and 1,01% respectively. The all share industrial index had eased 0,1%. Financials were 0,23% firmer, while the banks index was 1,02% in the black.
The rand was quoted at R6,56 per dollar from R6,58 when the JSE closed on Monday, while gold was quoted at $401,38 an ounce from $399,85/oz at the JSE’s last close.
“Once again, it has been a rather lacklustre day. The market has a weaker bias on the back of the stronger rand, which has put pressure on resources and some of the dual-listed industrials,” a dealer said.
He added that banks were leading the upside of the market due to their relative attractiveness to resources given the strength of the currency.
London-listed diversified resources group Anglo American was 1,5% or R2,51 weaker at R164,50, while BHP Billiton was 1,13% or 70 cents in the red at R61,30.
Both were also weaker in London.
Gold Fields gave up 1,2% or one rand to R82, AngloGold lost 1,56% or R4,41 to R277,60 and Harmony was down 1,56% or R1,61 at R101,90.
AngloPlat was R2,50 softer at R292, while Impala lost 1,2% or seven rand to R578.
Junior platinum miner Barplats, however, rocketed 25% or 35 cents to R1,75, making it the JSE’s best performer.
The strength came in the wake of an announcement before the opening that Impala Platinum had agreed to sell its 83,2% stake in Barplats to a consortium of investors led by Salene Platinum Consortium at a cash price of R2,10 per share.
The sale agreement is subject to a number of conditions, including the raising of the necessary financing by the consortium to complete the transaction, which must be met by March 31.
“Barplats is up on the news of the sale of Implats stake to a BEE [black economic empowerment] consortium. There are concerns, however, that the consortium will not be able to raise the funding by March 31,” the dealer commented.
Synthetic fuels group Sasol was 1,43% or R1,45 stronger at R102,95.
On the industrial market, Swiss-listed luxury goods group Richemont retreated 15 cents to R17,66 and London-listed beverages group SABMiller weakened 65 cents to R69,50.
Brand management group Barloworld was down 50 cents at R69,20.
Steel giant Iscor, however, strengthened 2,34% or 90 cents to R39,40 and retailer Pick ‘n Pay surged 2,86% or 50 cents to R18.
On the financial front, London-listed Old Mutual eased five cents to R11,87 and Liberty International plc weakened 1,09% or 99 cents to R90,01.
Standard Bank, however, jumped 1,5% or 60 cents to R40,55, Absa added 40 cents to R46,60, FirstRand firmed three cents to R9,40 and Nedcor bounced 2,24% or R1,40 to R64.
Nedcor announced earlier that it intends to sell its London-based investment management subsidiary, Chiswell Associates Limited, to Sarasin Investment Management LImited for £20,9-million.
Insurance group Mutual & Federal climbed 1,3% or 25 cents to R19,50.
“Mutual & Federal is another stock in focus. Minorities are hoping for a sweetened offer from Old Mutual,” the dealer commented.
It was announced on Monday that Mutual & Federal’s board had decided not to recommend the offer by Old Mutual South Africa to acquire minority shareholders’ interests in the company as it had been found not to be fair and reasonable.
Old Mutual SA owns a 50,5% stake in Mutual & Federal and on December 20 announced a buyout offer under which it had secured an undertaking to acquire United Kingdom life assurer Royal & Sun Alliance’s 37,1% stake in Mutual & Federal for R15,25 per share, a 15% discount to the R17,50 per share offered to other Mutual & Federal minorities.
The offer price was widely criticised by some shareholders and market analysts as being undervalued. — I-Net Bridge