The JSE Securities Exchange (JSE) was in negative territory just before midday on Monday, with a firming in the rand sparking profit taking after the bourse’s strong run last week. Weakness in world markets on concerns about possible terrorist attacks on United States financial institutions, as well as a higher oil price, further dampened sentiment.
By 11.51am, the all-share and all-share industrial indices were 0,55% and 0,40% weaker respectively. Financials fell 0,32%, while the banks index lost 0,39%. Resources retreated 0,84%, the platinum mining index surrendered 0,85%, but the gold mining index gained 0,32%.
The rand was quoted at R6,23 per dollar from R6,26 when the JSE closed on Friday, while gold was quoted at $392,85 an ounce from $390,95/oz at the JSE’s last close.
“We are seeing a bit of profit taking in stocks like Anglo, which have had a good run. The rand is not helping,” a dealer said.
She added that it had been a relatively quiet start, with less than half-a-billion rands’ worth of shares having traded.
The dealer added that weakness on Asian and European markets was also contributing to the negativity.
“Everything is on the back foot at the moment,” she commented.
On the resources market, London-listed Anglo American was down R1,30 at R131,90, while BHP Billiton was 1,22% or 70 cents weaker at R56,65.
Oil and chemicals group Sasol slipped one rand to R102,75.
Gold miner Harmony gave up 1,01% or 70 cents to R68,30 after reporting disappointing results before the opening.
Harmony reported a loss per share of 191 cents for the June quarter compared with a loss of 31 cents in the March quarter.
Analysts polled by I-Net Bridge had expected a loss per share excluding exceptional items of 53 cents. Forecasts ranged from a loss of 34 cents to a loss of 74 cents.
The group also reported a headline loss per share of 131 cents for the June quarter, from a 16-cent loss in the March quarter.
Analysts polled by I-Net Bridge had expected Harmony to report a headline loss per share including exceptional items of 40 cents. Forecasts ranged from a loss of 23 cents to a loss of 53 cents.
The company declared a final dividend per share of 30 cents, for a total full year dividend of 70 cents, down 75% from 275 cents in the 2003 financial year to June.
“Harmony’s results were a lot worse than expected. Although everyone was expecting them to be dismal, they were quite a bit lower than that,” the dealer commented. She added, however, that the fact that Harmony was paying a dividend despite the poor results was a surprise.
In contrast to Harmony, Gold Fields gained 1,15% or 74 cents to R68,30 and AngloGold Ashanti was one rand better at R207,60.
AngloPlat eased two rand to R238 and Impala was off R4,75 at R491,15.
Industrials to lose ground included Swiss-listed luxury goods group Richemont, which retreated 16 cents to R16,05. London-listed beverages group SABMiller was 35 cents weaker at R79,50, while telecoms group Telkom slid 1,06% or 85 cents to R79,40.
Steel producer Iscor tumbled 2,12% or 80 cents to R37.
“Iscor is under pressure, even though globally steel stocks have been doing very well. This is probably because of the looming strike there,” the dealer commented.
Last week, Solidarity, the largest trade union at Iscor, announced that Iscor’s latest wage offer had been rejected by its members.
Brand management group Barloworld was 39 cents stronger at R69 and cellular network operator MTN Group ticked up nine cents to R26,99.
Food group Tiger Brands firmed 40 cents to R88,40, while Illovo leaped 2,79% or 19 cents to R6,99.
London-listed IT group Dimension Data leaped 1,59% or five cents to R3,20, while Datatec surged 3,06% or 26 cents to R8,77.
Financials to fall included London-listed Old Mutual, which was six cents lower at R11,83. Sanlam was four cents softer at R8,71, while health and life insurer Discovery slumped 2,55% or 34 cents to R13,01.
Alexander Forbes dived 5,24% or 55 cents to R9,95 after going ex-dividend of 67 cents per share.
Banking group FirstRand fell eight cents to R9,96, while Standard Bank dipped 10 cents to R42,80.
On the upside, investment company Remgro rose 47 cents to R77,47.
Microlender Abil was 1,29% or 15 cents in the black at R11,75.
Abil said before the opening that its sales in the second quarter 2004 had been 30% above the group’s sales in the same period in 2003. — I-Net Bridge