After getting off to a good start on the back of a softer rand and stronger United States markets overnight, the JSE Securities Exchange (JSE) was off the boil in noon trade on Wednesday due to weaker European markets and US futures and the currency recovering from its worst levels seen earlier in the morning.
By noon, the all-share index was up 0,3%. Resources rose 0,88% and the platinum mining index jumped 1,51%, but the gold-mining index surrendered 0,38%. Industrials were flattish (-0,06%), financials dipped 0,1% and the banks index eased 0,22%.
The rand was quoted at R6,22 per dollar from R6,15 when the JSE closed on Tuesday, while gold was quoted at $396 an ounce from $400,30/oz at the JSE’s last close.
“The market started substantially firmer on strong US markets overnight and the weaker rand, but it has come off because US futures and European markets are pointing down. The rand is also off its worst levels,” a dealer said.
He added that with platinum at $841/oz from $835/oz at the JSE’s last close, platinum stocks remained a feature on the upside.
In morning trade, London-listed diversified miner Anglo American added 1,66% or R2,14 to R131,34 and BHP Billiton bounced 55 cents to R57,40.
AngloPlat advanced 2,54% or R6,25 to R252 and Impala perked up 1,05% or R5,30 to R510.
Petrochemicals group Sasol, however, dipped 21 cents to R107,79.
The lower gold price kept gold stocks in check, with Gold Fields giving up 33 cents to R65,37 and AngloGold Ashanti shedding R1,25 to R203,50.
Junior miner Durban Roodepoort Deep (DRD) was again under pressure, dropping 2,97% or 35 cents to R11,45. It earlier traded at R11 — its worst level since November 2001.
DRD shares dived 21% on Tuesday after the group reported disappointing results before the opening.
On the industrial market, pulp and paper producer Sappi strengthened 85 cents to R90,50.
Sun International soared 3,8% or R1,50 to R41 and London-listed beverages group SABMiller inched up 10 cents to R77,60.
However, Swiss-listed luxury goods group Richemont retreated 15 cents to R15,40 and transport and logistics group Imperial slid 1,23% or 85 cents to R68,15.
Media group Naspers shed 25 cents to R45,25 and retailer Woolies lost six cents to R7,55.
On the financial front, Liberty Group was 21 cents in the black at R50,20 after earlier trading as high as R51.
Before the opening, the life assurer reported that its headline earnings recovered from a low base in respect of the first six months of last year, increasing by 28,6% from 130 cents to 167,2 cents for the six months ended June as a result of a favourable operational performance and better investment returns.
Headline earnings for the half-year were up 29,4% to R460-million. Total new business premiums increased by 16,6% to more than R6,3-billion and net cash inflows from insurance operations increased by 37,7% to almost R2,4-billion.
“Liberty’s results exceeded expectations,” a dealer commented.
Microlender Abil added 1,06% or 12 cents to R11,43.
Financial services group Sanlam was five cents softer at R8,55, while health and life insurer Discovery slid 3,2% or 45 cents to R13,60.
Discovery shares rocketed more than 7% on Tuesday to R14,05, touching an intraday high of R14,10 shortly before it announced its lowest-to-date contribution increase of 5,4% for the Discovery Health medical scheme for 2005 and, at the same time, introduced an integrated, next-generation credit card designed to enhance and reward a healthy lifestyle. — I-Net Bridge