The JSE Securities Exchange South Africa (JSE) was drifting in the red just after noon on Thursday, dragged down by heavyweight resources stocks, which were weaker in London. A softer rand pared losses slightly.
By 12.31pm, the all-share index was down 0,15%. Resources retreated 0,85% and the platinum mining index lost 0,97%. The financial and banks indices fell 0,19% and 0,24% respectively. The gold-mining index ticked up 0,27% and the all-share industrial index climbed 0,68%.
The rand was quoted at R6,80 per dollar from R6,72 when the JSE closed on Wednesday, while gold was quoted at $380,20 an ounce from $382,85/oz at the JSE’s last close.
“We have seen a bit of a sell-off. Anglo and Billiton, which ran hard yesterday [Wednesday] have pulled back a bit, following London,” a dealer said.
She added that the slightly weaker rand was trimming losses a bit.
On the JSE’s upside, the dealer said that London-listed beverages group SABMiller was a feature on the back of better-than-expected results before the opening. Cellular network operator MTN Group was also looking very strong.
“There was big turnover in MTN yesterday and people think that the selling pressure that saw it fall from R36 to current levels over the last few weeks might be out of the way,” she explained.
MTN group surged 4,26% or R1,15 to R28,15.
She said that gold miner Harmony was up after demand from its ADR was seen in the United States overnight.
On the JSE’s downside, London-listed diversified resources group Anglo American shed 1,18% or R1,61 to R134,39 and BHP Billiton slid 1,73% or 96 cents to R54,54.
Impala Platinum lost 1,32% or R5,80 to R433.
Swiss-listed luxury goods group Richemont weakened 1,2% or 20 cents to R16,50 and brand management group Barloworld slipped 1,8% or R1,25 to R68,20.
Transport and logistics group Imperial was off 1,1% or 75 cents at R67,50.
Banking group Nedcor was down 50 cents at R59,50 and RMB Holdings was 1,48% or 22 cents lower at R14,60.
Health and life insurance group Discovery dropped 2,33% or 30 cents to R12,55.
Real estate company Liberty International plc lost 1,31% or R1,16 to R87,20.
Leading the upside, SABMiller soared 5,8% or R4,28 to R78,10 after reporting a 44% increase in adjusted earnings per share to 77,6 US cents for the year to March 2004 from 54 US cents the year before.
Analysts had expected earnings per share of 70 US cents.
In line with expectations, SABMiller declared a 20% increase in its dividend per share to 30 US cents per share from 25 US cents before.
Gold miner Harmony was 1,38% or one rand higher at 73,50 and London-listed financial services group Old Mutual firmed nine cents to R11,19. — I-Net Bridge