The JSE Securities Exchange South Africa remained in the black, but was well off its intraday highs, in noon trade on Thursday, as lower commodity prices and softer European markets offset the weaker rand’s positive influence. Volumes were impressive, boosted by a late trade in JD Group that was only recorded on Thursday morning.
By 11.58am, the all-share and all-share industrial indices were 0,21% and 0,44% higher respectively. Resources were 0,22% firmer and the gold mining index was up 0,77%. However, the platinum mining index had plunged 1,78%. The banks index was 0,85% in the red, while the financial index had eased 0,12%.
The rand was quoted at R6,86 per dollar from R6,72 when the JSE closed on Wednesday, while gold was quoted at $391,20 an ounce from $393,60/oz at the JSE’s last close. Platinum was quoted at $859/oz from $893,50/oz when the JSE closed previously.
A dealer said that were it not for the currency, the JSE would likely be in the red.
“Our mining stocks are coming under pressure in London — I am quite surprised because I thought they would have bounced after the sell-off yesterday [Wednesday], but commodity prices are not looking good and we are seeing selling coming through,” a dealer said.
However, resources counters were being buoyed locally by the weaker rand, she commented.
“Platinum stocks are taking a punishment, purely on the platinum price being down sharply,” she added.
The dealer said that there was an element of caution in the market ahead of the South African Reserve Bank’s monetary policy committee decision on interest rates due just after 3pm, although no change is expected.
Players would be also looking at April producer inflation (PPI) and weekly initial jobless claims data due out in the United States on Thursday afternoon, as these would give an indication as to future changes in US interest rates and therefore influence the dollar’s direction.
While it was down more than 1% in London, diversified resources group Anglo American added 30 cents locally to trade at R145,80. BHP Billiton, which was also weaker in the United Kingdom, was 39 cents better at R56,71.
AngloGold gained 1,61% or R3,59 to R227, Harmony was 49 cents higher at R82 and Gold Fields inched up 24 cents to R75.
Impala Platinum plunged 2,33% or R12 to R502 and AngloPlat slid 1,15% or three rand to R257.
Synthetic fuels group Sasol dipped 45 cents to R103,50.
On the industrial index, pulp and paper producer Sappi surged 2,29% or R1,95 to R87,10.
Swiss-listed luxury goods group Richemont jumped 1,35% or 24 cents to R18,04 and London-listed beverages group SABMiller strengthened 60 cents to R75,80.
Services group Bidvest soared 2,28% or R1,25 to R56.
Retailer New Clicks climbed 1,72% or 13 cents to R7,70. Before the opening, New Clicks reported a rise in diluted headline earnings per share for the six months to the end of February 2004, to 45,2 cents from 37 cents a year earlier. The group declared an interim dividend of 12,5 cents per share, up from 10,9 cents in 2003.
JD Group inched up five cents to R43,10.
Thursday’s volumes were boosted by R600-million by a large late trade in JD Group, which seemed to be related to the sale of a 16,7% stake in the company held by Daun & Cie via a private placement.
A dealer noted that the sale was valued at R1,2-billion, so it appeared that there was more to come.
Industrials to decline included steel producer Iscor, which tumbled 2,68% or R1,02 to R36,98.
Cellular network operator MTN group gave up 1,09% or 35 cents to R31,90 and Telkom slumped 1,67% or R1,35 to R79,50.
Financials to firm included London-listed Old Mutual, which was 1,5% or 18 cents in the black at R12,19 and real estate company Liberty International plc, which leaped 1,29% or R1,15 to R90,15.
Banking group Nedcor, however, plunged 2,93% or R1,80 to R59,60, FirstRand fell eight cents to R9,97, Absa retreated 30 cents to R48,15 and Standard Bank surrendered 25 cents to R42,25. — I-Net Bridge