The JSE Securities Exchange South Africa (JSE) was off its lows, but remained in the red, in noon trade on Wednesday, with a stronger rand weighing on heavyweight dual-listed and resources stocks. However, the rand’s strength failed to keep buyers away and on the all-share index advancers slightly outpaced decliners.
At noon, the all-share and all-share industrial indices were down 0,31% and 0,26% respectively. Resources were 0,65% weaker, the gold mining index gave up 0,7%, but the platinum mining index jumped 0,7%. Financials firmed 0,25% and the banks index inched up 0,12%.
The rand was quoted at R6,33 per dollar from R6,37 when the JSE closed on Tuesday, while gold was quoted at $418,75 an ounce from $417,30/oz at the JSE’s last close.
“A couple of the offshore counters are getting hit because of the stronger rand,” a dealer said.
She added that a couple of stocks had gone ex-dividend, due to the public holidays on Friday and Monday, which were also weighing on the market.
“We’ve seen good volumes going through. There have been a couple of big offmarket crosses,” she commented.
In morning trade, London-listed BHP Billiton led the JSE’s downside, tumbling 2,32% or R1,40 after going ex-dividend of 56,32 cents. Anglo American dipped 18 cents to R156,82.
Both Anglo and Billiton were up in London.
AngloGold weakened R1,74 to R257 and Harmony was off 1,11% or R1,04 to R92,45.
Synthetic fuels group Sasol slid 50 cents to R96,65.
AngloPlat, however, added 1,34% or R3,70 to R280,20 and Impala climbed two rand to R520.
On the industrial market, London-listed beverages group SABMiller slumped 1,74% or R1,29 to R73,01 and steel producer Iscor retreated 1,31% or 51 cents to R38,50.
London-listed IT group Dimension Data dropped 1,96% or nine cents to R4,50.
Retailer Massmart slipped 2,37% or 80 cents to R33 and, after a strong run in recent days, cellular network operator MTN Group was 2,78% or one rand in the red at R35.
Telkom, however, surged 4,06% or R3,30 to R84,50 after trading at a lifetime high of R85.
Swiss-listed luxury goods group Richemont ticked up eight cents to R16,63 and hospital group Netcare bounced 2,14% or 10 cents to R4,77.
Kersaf was the all share index’s top performer, rocketing 7,89% or three rand to R41. It traded as high as R42 early in the session.
Kersaf, which holds a 62,4% stake in hotel and gaming group Sun International South Africa (Sisa), announced after the close on Tuesday that it will offer minority shareholders one Kersaf share for every 13 Sisa shares held, or an alternative cash offer of R3,50 per Sisa share, limited to a maximum aggregate cash outflow from Kersaf of R400-million.
Detailing the group’s proposed buyout of Sisa minorities, Kersaf said that, on the basis of a R400-million cash outlay, the proposed acquisition consideration would equate to approximately 75% of the total being payable in Kersaf shares and 25% being payable in cash. The total value of the deal is therefore R1,6-billion.
Liberty International plc led the downside of the financial index, falling 1,46% or R1,30 to R88 after going ex-dividend of 152,38 cents.
Microlender ABIL lost 2,49% or 30 cents to 11,75 rand. Absa was down 30 cents at R47,90.
Sanlam, however, strengthened 1,6% or 15 cents to R9,55. Its intraday high of R9,60 was its best level since May 2002.
RMB Holdings rallied 15 cents to R15,95 after trading at R16,10 — its best level since July 1998.
Nedcor rose 50 cents to R59. — I-Net Bridge