After opening lower on the back of a stronger rand, the JSE Securities Exchange (JSE) was off its worst levels in noon trade on Wednesday due to an easing in the currency. Volumes were reasonable, with more than R1-billion-worth of shares changing hands in morning trade.
By 12.10pm, the all-share index was down 0,31%. Resources retreated 0,69%, the platinum-mining index plunged 17,72% and the banks index was 0,61% in the red. The all-share industrial (-0,01%), financial (-0,08%) and gold-mining (+0,04%) indices were all flat.
The rand was quoted at R6,53 per dollar, little changed from when the JSE closed on Tuesday, but weaker than its levels of about R6,49 when the JSE opened. Gold was quoted at $403,30 an ounce from $401,80/oz at the JSE’s last close.
“Today has mainly been a currency play. The market opened down on the back of the stronger rand. The rand has since weakened, giving the bourse a bit of a lift,” a dealer said.
She added that it had been a busy morning in terms of company results with three heavyweight companies — BHP Billiton, Standard Bank and Iscor reporting.
BHP Billiton led the market’s downside, slipping 1,75% or R1,10 to R61,60.
“BHP Billiton is also down in the United Kingdom. Its results were pretty good, but it moved up strongly ahead of them and there has been a bit of profit taking,” the dealer commented.
Before the opening, BHP Billiton reported record basic earnings per share, excluding exceptional items, for the year to June 2004 of 56,4 United States cents due to the sharp increase in US dollar commodity prices — up 83% from 30,9 US cents in the 2003 financial year.
Six analysts surveyed by I-Net Bridge had expected earnings of 54,5 US cents, with forecasts ranging from 51 US cents to 57,5 US cents.
The group reported an attributable profit, excluding exceptional items, of $3,510-billion, up 83% from $1,920-billion in the 2003 financial year.
Analysts had expected earnings of about $3,388-billion, with forecasts ranging from $3,170-billion to $3,570-billion.
BHP Billiton declared a final dividend of 9,5 US cents per share, bringing the total for the year to 26 US cents per share.
Standard Bank shares were also under pressure, tumbling 2,1% or 90 cents to R42.
It earlier reported headline earnings per share of 252,5 cents — a 14% improvement on the previous comparable half-year’s earnings.
The group declared an interim dividend per share of 50,5 cents, which was 22% up on the previous dividend.
Steel producer Iscor strengthened 2,51% or R1,10 to R44,85 after it reported a 36% increase in headline earnings per share to 348 cents, up from 256 cents in the previous comparative period in 2003.
Analysts surveyed by I-Net Bridge had expected earnings of 349 cents, with forecasts ranging from 271 cents to 380 cents.
Headline earnings for the half-year increased from R1,143-billion to R1,551-billion.
The group declared no interim dividend, but said it might pay a special dividend later in 2004. It paid 100 cents per share for the six months ended June last year.
Other companies to report results on Wednesday included African Rainbow Minerals (ARM), which was last quoted five cents in the black at R34,80. Construction company Group Five dived 7,31% or 82 cents to R10,40.
ARM reported a 79% decline in headline earnings per share for the year ending June 2004 to 37 cents, from 176 cents in the year to June 2003.
The I-Net Bridge consensus of analysts forecast ARM producing headline earnings per share of 120 cents.
Group Five reported a 17,4% increase in headline earnings per share (Heps) to 135,1 cents for the year ended June 30 2004 from 115,1 cents a year ago.
The group declared a final dividend of 29 cents per share, bringing the total dividend for the year to 44 cents — 18,9% higher than the 37 cents dividend for the previous year.
The I-Net Bridge consensus forecast was for Heps of 141,9 cents and a dividend of 41,5 cents.
London-listed diversified miner Anglo American lost 54 cents to R147,81, but petrochemicals group Sasol climbed 25 cents to R111,90.
Gold miner Harmony was up 60 cents at R78,90.
AngloPlat slumped 2,82% or R8,20 to R283 and Impala weakened 1,1% or R5,45 to R536,50.
Retailer JD Group dropped 1,42% or 65 cents to R45, but Woolies rose 1,31% or 10 cents to R7,75. — I-Net Bridge