The JSE Securities Exchange South Africa (JSE) was drifting in the red in noon trade on Tuesday, dragged down by gold and platinum stocks, which were weaker on the back of lower precious metals prices. Heavyweight dual-listed stocks led the market’s upside, buoyed by a softer rand and in some cases positive performances offshore.
By 11.56am, the all-share index was down 0,31%. Financials and resources both fell 0,37%, with the gold and platinum mining indices tumbling 2,48% and 2,45% respectively. The banks index eased 0,21% and the all-share industrial index dipped 0,18%.
The rand was quoted at R6,82 per dollar from R6,76 when the JSE closed on Monday, while gold was quoted at $378,70 an ounce from $380,80/oz at the JSE’s last close. Platinum was quoted at $803 an ounce from $817,50/oz when the JSE closed previously.
“The market is a bit slow today,” a dealer said. “Platinum stocks are under pressure — the platinum price is down 2% on the Johnson Matthey report, which said the undersupply of platinum would end. Gold stocks are also weaker on the back of the lower gold price.”
She added that on the market’s upside, rand hedges were looking better on the back of the currency.
On the JSE’s downside, Impala Platinum plunged 2,04% or R8,99 to R431 and AngloPlat plummeted 3,52% or eight rand to R219.
Platinum supply and demand are expected to be more or less in balance in 2004, ending a run of five successive years of supply deficit, according to Johnson Matthey’s Platinum 2004, published on Monday.
AngloGold surrendered 2,52% or R5,47 to R211,50 and Gold Fields fell 2,78% or two rand to R70. Harmony was down 2,72% or R1,95 at R69,80. It earlier traded at R69,49 — its lowest level since December 2001.
Telecoms group Telkom lost 1,15% or 85 cents to R73,15 and cellular network operator MTN Group slipped 1,17% or 31 cents to R26,24.
Hospital group Netcare weakened 3,08% or 14 cents to R4,41 and brand management group Barloworld was off 1,78% or R1,24 to R68,26.
Furniture group Steinhoff shed 2,35% or 19 cents to R7,90.
Financials to fall included Absa, which was 1,46% or 65 cents in the red at R43,85. Investec plc lost 1,53% or R1,75 to R112,50 and Sanlam slid 1,07% or nine cents to R8,36.
On the JSE’s upside, BHP Billiton was 49 cents better at R52,79. The dealer said that in addition the group was being helped by its oil business, due to high crude prices.
Anglo American added 35 cents to R127,55 and oil and chemicals group Sasol climbed 50 cents to R94.
Swiss-listed luxury goods group Richemont rallied 1,06% or 17 cents to R16,17, London-listed beverages group SABMiller strengthened 70 cents to R71,20 and pulp and paper producer Sappi picked up 50 cents to R91,50.
Standard Bank inched up five cents to R38,30 and FirstRand firmed three cents to R9,28. — I-Net Bridge