After opening deep in the red on the back of a stronger rand, the JSE Securities Exchange (JSE) was well off its worst level in noon trade on Tuesday, after importer demand for dollars saw the currency lose ground. Volumes were reasonable, with just under R1-billion-worth of shares changing hands in morning trade.
By noon, the all-share and all-share industrial indices were down 0,37% and 0,7% respectively. Resources were 0,44% softer and the gold-mining index weakened 1,29%. The platinum mining index climbed 0,88%, however. Financials firmed 0,24% and the banks index bounced 0,95%.
The rand, which was traded below R6,10 per dollar when the JSE opened, was quoted at R6,15 per dollar from R6,14 when the JSE close on Friday, while gold was quoted at $399,25/oz, little changed from its level at the JSE’s last close.
The JSE was closed on Monday for Women’s Day.
“The JSE is tracking the. It opened down because the rand was stronger, but now that the currency has weakened a bit, the JSE is recovering,” a dealer said.
In morning trade, London-listed diversified resources group Anglo American lost 1,18% or R1,55 to R129,85 and BHP Billiton shed 1,22% or 70 cents to R56,60.
Gold miner Harmony was 1,34% or 90 cents lower at R66,10, Gold Fields surrendered 1,51% or one rand to R65,25 and AngloGold Ashanti eased R1,30 to R204,50.
Junior miner Durban Roodepoort Deep (DRD) dived 4,93% or 74 cents to R14,26 after releasing disappointing results before the opening.
DRD reported a headline loss per share of 265,1 cents for the June 30 quarter from a headline profit of 17 cents in the March quarter of this year.
For the year to June, DRD reported a headline loss per share of 283,9 cents. The I-Net Bridge consensus of analysts had the company reporting a headline loss per share of 13 cents, from a headline profit per share of 211 cents in the 2003 financial year.
However, petrochemicals group Sasol soared 3,13% or R3,27 to R107,80.
AngloPlat added 1,02% or R2,50 to R247,50 and Impala improved 1% or five rand to R505.
Industrials to decline included Swiss-listed luxury goods group Richemont, which was 1,34% or 21 cents weaker at R15,51.
London-listed beverages group SABMIller slid 1,47% or R1,15 to R77,20 and pulp and paper producer Sappi was 1,44% or R1,33 softer at R91,05.
Hospital group Netcare tumbled 2,07% or nine cents to R4,26 and cellular network operator MTN Group dipped 25 cents to R26,65.
Telkom inched up 20 cents to R77,70 and furniture group Steinhoff firmed 2,39% or 19 cents to R8,15.
On the financial front, London-listed Old Mutual fell 1,04% or 12 cents to R11,43 despite being up more than 2% in the United Kingdom.
Before the opening, the group reported a 21% rise in adjusted operating earnings per share (in sterling terms) for the six months to the end of June 2004, to 6,8 pence from 5,6 pence in the year-earlier period. In rand terms, growth was 13%, to 82,7 cents from 73,4 cents a year earlier.
The results were above market expectations. According to a survey of investment analysts by I-Net Bridge, Old Mutual was forecast to report fully diluted headline earnings per share of between 66 cents and 74 cents, compared with 73,4 cents in 2003.
Real estate company Liberty International plc dropped 70 cents to R91,30 and niche banking group Investec plc was down 1,3% or R1,45 at R109,80.
Financial services group Sanlam, however, strengthened 1,41% or 12 cents to R8,62.
Banking group Nedcor, Old Mutual’s subsidiary, bounced 1,7% or 85 cents to R56,70. Absa added 1,2% or 60 cents to R50,60, FirstRand rose nine cents to R9,91 and Standard Bank was 24 cents in the black at R42.
“I think Nedcor was knocked too hard after it released its results last week. People were focusing on the figures, but they are starting to realise that it is going to increase its earnings quite a bit in the second half.” — I-Net Bridge