The JSE Securities Exchange (JSE) was marginally stronger in noon trade on Friday in a market that was extremely quiet ahead of the release of United States non-farm payrolls data at 2.30pm. Gold stocks pared the bourses gains, tumbling on the back of a lower bullion price and a poor performance by their ADRs in the US overnight.
By 12.05pm, the all-share and all-share industrial indices were 0,2% and 0,3% firmer respectively. Financials picked up 0,53% and the bank index was 1,06% better. The gold mining index plunged 2,23%, the platinum mining index eased 0,13% and the resources index was flat (-0,06%).
The rand was quoted at R6,47 per dollar, little changed from when the JSE closed on Thursday, while gold was quoted at $388 an ounce from $390,40/oz at the JSE’s last close.
“The market is absolutely dead. There is a serious lack of news out and volumes in the States last night were very low, which seems to have followed through to our market,” a dealer said.
He added that firmer European markets were helping the JSE on the upside.
“We had selling in gold shares in New York last night and that has carried forward here today. Durban Roodepoort Deep was absolutely slaughtered — there was stop-loss selling in both it and AngloGold.”
The dealer said that everyone was waiting for the US non-farm payrolls data as it would give a clearer indication as to the direction of US interest rates. A higher than expected number would increase the chance of the Fed raising rates when it meets at the end of the month and should see the dollar strengthen and the rand weaken, which would be positive for the JSE. However, it would also send US markets lower, which would impact the local bourse negatively.
The US Department of Labour is expected to report about 220 000 additional non-farm jobs in May, according to a consensus of economists surveyed by CBS MarketWatch.
The forecasts from 27 analysts ranged from 135 000 to 300 000.
In morning trade, London-listed diversified resources group Anglo American added R1,10 to R134,20 and BHP Billiton bounced 35 cents to R52,85.
AngloPlat inched 35 cents higher to R241.
Oil and chemicals group Sasol, however, slipped 1,38% or R1,40 to R100.
On the gold mining index, junior miner Durban Roodepoort Deep plummeted 4,17% or 75 cents to R17,25. AngloGold Ashanti plunged 2,51% or R5,50 to R214, Gold Fields surrendered 2,03% or R1,45 to R69,90 and Harmony was 2,11% or R1,51 lower at R70.
London-listed beverages group SABMiller strengthened 1,26% or one rand to R80,30 and Swiss-listed luxury goods group Richemont climbed 14 cents to R17.
Packaging group Nampak wrapped up 1,75% or 25 cents to R14,50.
However, retailer Metcash retreated 2,08% or five cents to R2,35 and media group Naspers shed 1,48% or 70 cents to R46,50.
Telecoms group Telkom dropped 1,14% or 90 cents to R78.
On the financial front, banking group Nedcor jumped 2,86% or R1,76 to R63,26, FirstRand firmed 1,51% or 15 cents to R10,10 and Standard Bank rose 38 cents to R43.
London-listed Old Mutual ticked up six cents to R11,37.
Absa eased nine cents to R48,50. — I-Net Bridge