The JSE Securities Exchange South Africa (JSE) was in the red, but well off the morning’s worst levels, just before midday on Monday, moving in line with the rand — one of the morning’s major drivers. While weaker world markets were also dragging on the downside, higher precious metals prices offset losses somewhat.
By 11.56am, the all-share and all-share industrial indices were 0,48% and 0,56% weaker respectively. Resources were down 0,75% and the platinum mining index was off 0,31%, but the gold mining index gained 0,45%. Financials were flattish (+0,07%), while the banks index was 0,8% better.
The rand was quoted at R6,75 per dollar from R6,78 when the JSE closed on Friday, while gold was quoted at $380,80 an ounce from $376,20/oz at the JSE’s last close.
“It looks like it is the rand more than anything else that is affecting the market. The rand has weakened to R6,76 [from the low R6,70s earlier in the morning] and that has helped the resources market. Commodity prices are up and that is helping gold and some of the platinum shares,” a dealer said.
“The rest of the market is taking a hammering on the back of global markets. Europe is down and Eastern markets took an absolute thrashing — I think the only reason the Dow was up on Friday is that 10Â 000 is a big support level and funds don’t want to see it go below that.”
In morning trade, London-listed diversified resources group Anglo American lost 1,25% or R1,60 to R126 and BHP Billiton eased 26 cents to R51,35.
Synthetic fuels group Sasol slipped 1,89% or R1,80 to R93,20.
While AngloPlat tumbled 1,77% or four rand to R222, Impala climbed R1,60 to R432.
At $813/oz, platinum was more than $20 stronger than when the JSE closed previously.
AngloGold dipped R1,01 to R213,01, but Gold Fields gained 68 cents to R70,25 and Harmony was flattish, up five cents at R70,60.
AngloGold, Gold Fields and Harmony all touched long-term lows on Monday morning.
On the industrial market, Swiss-listed luxury goods group Richemont retreated 2,54% or 41 cents to R15,75.
Steel producer Iscor was 1,56% or 50 cents softer at R31,50.
London-listed IT group Dimension Data dropped 2,05% or eight cents to R3,83 and pulp and paper producer Sappi shed 52 cents to R91,50.
However, telecoms group Telkom ticked up 1,38% or one rand to R73,50.
Fast-food group Famous Brands — formerly Steers — surged 4,41% or 15 cents to R3,55 after the group reported a 47% increase in headline earnings per share to 38,2 cents for the year ended March 31 from 26 cents a year earlier.
Pretoria Portland Cement (PPC) rallied 4,18% or R5,90 to R146,90 after earlier touching a best-to-date R150. PPC has had a strong rally recently on prospects of high dividends in the next couple of years. It is also one of the companies that stands to benefit from South Africa hosting the 2010 Soccer World Cup.
On the financial front, banking group Nedcor fell 1,33% or 80 cents to R59,20.
Financial services group Sanlam slipped 1,4% or 12 cents to R8,43.
However, Standard Bank strengthened 1,72% or 64 cents to R37,90 and FirstRand firmed eight cents to R9,10. — I-Net Bridge