The JSE Securities Exchange South Africa was softer at midday on Monday, with a strong rand keeping the bourse in check. However, with no fresh news to encourage players, volumes were extremely light — less than half a billion rand worth of shares had changed hands.
By 11h57, the all share and all share industrial indices were 0,34% and 0,24% weaker respectively. Financials fell 0,49% and the banks index lost 0,82%. Resources eased 0,33%, the gold mining index surrendered 0,67% and the platinum mining index lost 0,62%.
The rand was quoted at 6,39 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $394 an ounce from $396/oz at the JSE’s last close.
The rand, which was trading above R6,50 per dollar on Friday morning, rallied in the afternoon after the dollar tumbled following the release of worse-than-expected US current account data, which raised concern about the US’s ability to finance its deficits.
“Essentially, the market has been driven by the strong rand today. When the rand was at its best level, the Top 40 index was down 60-odd points, but now it is down only 35 points,” a dealer said.
He added that offshore markets were offering the JSE little direction. There was also no major news out.
Shares to decline in morning trade included London-listed diversified resources group Anglo American, which dipped 41 cents to R131,50. BHP Billiton fell 10 cents to R54,60.
AngloGold Ashanti dropped 1,89% or R3,86 to R199,99, Gold Fields gave up 36 cents to R66,65, but Harmony climbed 31 cents to R66.
AngloPlat was off R1,60 to R240 and Impala was down R3,10 rand at R455.
Oil and chemicals group Sasol, however, ticked up 39 cents to R99,60.
On the industrial market, Swiss-listed luxury goods group Richemont slipped eight cents to R16,96.
London-listed beverages group SABMiller weakened 30 cents to R80,80 and media group Naspers slid 1,91% or 88 cents to R45,10.
While beverages group ABI plunged 2,94% or two rand to R66, this was understandable because it started trading ex-dividend of 231 cents per share on Monday.
On the upside, telecoms group Telkom leaped 1,64% or R1,26 to R78,25. Cellular network operator MTN Group gained 16 cents to R28,16.
Services group Bidvest surged 1,15% or 60 cents to R53 and London-listed IT group Dimension Data jumped 1,45% or five cents to R3,50.
On the financial front, banking group Absa slumped 1,68% or 85 cents to R49,60 after going ex-dividend of 110 cents per share.
Standard Bank shed 24 cents to 42.05 rand and FirstRand fell six cents to R10,08. Nedcor was down 35 cents at R63,40.
London-listed financial services group Old Mutual lost 10 cents to R11,60 and real estate company Liberty International was 75 cents in the red at R86,15.
Gainers included Sanlam, which strengthened five cents to R8,55, and Alexander Forbes, which firmed 1,98% or 20 cents to R10,30.
Capital Alliance rocketed 3,6% or 40 cents to R11,50 after it reported a drop in its basic headline earnings per share for the year to end-March 2004 to 280,9 cents from 288,5 cents per share, impacted largely by accounting changes. The company’s total dividend for the year, however, was 10% higher at 92 cents per share, versus 84 cents the previous year, with dividend cover falling to 3,3 times from 4,1 times in 2003.
According to an I-Net Bridge consensus forecast, Capital Alliance was expected to report HEPS of 254,1 cents per share and a dividend of 90 cents per share. – I-Net Bridge