After opening firmer in line with world markets, the JSE Securities Exchange (JSE) came off its highs by midday on Tuesday after the rand strengthened slightly. Dealers said that the market was rather featureless, lacking real drivers.
By 11.59am, the all-share, financial and banks indices were all 0,29% firmer. The resources and platinum mining indices were up 0,49% and 0,23% respectively. The all-share industrial (+0,07%) and gold mining (+0,03%) indices were flat.
The rand was quoted at R6,44 per dollar from R6,48 when the JSE closed on Monday, while gold was quoted at $395,63 an ounce from $392,50/oz at the JSE’s last close.
“United States markets were strong overnight and Eastern markets were up slightly, which lent us a bit of a positive mood, but the rand has strengthened somewhat, which has put a slight dampener on things,” a dealer said.
The rand traded as high as R6,50 to the dollar on Tuesday morning.
“There is no other reason for the market to move, so it is pretty rand driven at the moment.”
European markets were pretty flat.
The dealer said that trade was lacklustre and the JSE featureless, although he noted that telecoms group Telkom continued to forge ahead after releasing sparkling results before the opening on Monday. A number of brokers had upgraded the stock on the back of the results.
Telkom shares were up 2,38% or two rand at R86,10 after rocketing 8% on Monday.
Telkom reported an impressive 175% jump in headline earnings per share (Heps) to 864 cents for the year ended March 31, from 314 cents a year ago.
A final dividend of 110 cents per share was declared, which together with the special dividend of 90 cents per share makes a total of 200 cents for the year. The I-Net Bridge consensus forecast was for Heps of 725,9 cents per share and a dividend of 226,4 cents.
Other advancers included London-listed resources group BHP Billiton, which was 1,07% or 58 cents better at R54,79. Anglo American added 85 cents to R138,05.
Impala Platinum climbed R2,25 to R481,75.
Gold Fields gained 39 cents to R71,60 and Harmony was 60 cents higher at R72,40, but AngloGold Ashanti weakened 1,36% or R3,01 to R218.
The dealer explained that Anglo had seen its stake in AngloGold decline after its merger with Ashanti and someone had been buying a lot of the stock on their behalf to shore up their holding. However, this buying now appeared to be over, which could be the reason that selling in AngloGold was being seen.
Hospital group Netcare picked up 1,07% or five cents to R4,71 and food group Tiger Brands strengthened 40 cents to R90,40.
Retailer Edcon rallied 1,39% or two rand to R146, its highest since May 1996.
On the financial front, banking group FirstRand firmed 1,19% or 12 cents to R10,22.
London-listed Old Mutual jumped 1,3% or 15 cents to R11,70.
Alexander Forbes soared 5,26% or 50 cents to R10. On Monday, its shares were up more than 4% after it reported a 7% decline in Heps to 151 cents for the year ended March 31 from 162 cents a year ago. The dividend was maintained at 67 cents per share.
The I-Net Bridge consensus forecast was for Heps of 145,8 cents and a dividend of 67 cents.
On the JSE’s downside, brand management group Barloworld slipped 40 cents to R69,40.
Media group Naspers surrendered 1,08% or 50 cents to R45,80 and financial services group Sanlam slid 1,02% or nine cents to R8,76. — I-Net Bridge