The JSE Securities Exchange (JSE) was in the red just before noon on Tuesday, having been knocked down by heavyweight resources and banking counters. Petrochemicals group Sasol, which was hit by the double whammy of disappointing results and a strike at its coal operations, was the most active stock on a morning on which the JSE’s total value traded topped the R1-billion mark.
By 11.52am, the all-share index was down 0,64%. Resources retreated 1,08%, the gold-mining index surrendered 1,07% and the platinum-mining index plunged 1,6%. The financial and banks indices fell 0,63% and 0,84% respectively, while industrials eased 0,13%.
The rand was quoted at R6,63 per dollar, little changed from when the JSE closed on Monday, while gold was quoted at $401,45 an ounce from $402,10/oz at the JSE’s last close.
“We’ve seen nice volumes coming through the market, although it is all coming down. Anglo and Billiton are taking strain offshore and the latinum stocks are also coming under pressure,” a dealer said.
He noted that Anglo American and BHP Billiton alone made up almost 25% of the JSE.
Petrochemicals group Sasol, which has a weight in the all-share index of almost 5%, was also down quite sharply.
“Sasol’s results weren’t great and there is also a strike at their coal operations,” the dealer explained.
“We are also seeing selling in the banking sector. Mboweni’s statement that government does not want a foreign takeover has put a cap on banks,” he commented.
In morning trade, Sasol shares tumbled 2,61% or R2,99 to R111,61.
Sasol on Tuesday reported full year headline earnings per share of 925 cents for the 12 months ended June 30 2004, down 27% from 1 259 cents previously.
The I-Net Bridge consensus of analysts had forecast Sasol to report headline earnings per share of 971,2 cents.
Sasol declared a final dividend per share of 235 cents, for a total dividend for its 2004 financial year of 450 cents, unchanged from the previous financial year.
London-listed Anglo American weakened R1,40 to R149 and BHP Billiton eased 25 cents to R62.
Impala Platinum slid 1,93% or R10,50 to R532,50 and AngloPlat lost 1,18% or R3,50 to R292.
Gold miner Gold Fields gave up 1,69% or R1,30 to R75,70 and Harmony was 1,67% or R1,30 softer at R76,70.
Banking group FirstRand fell 10 cents to R10,70, Absa shed 1,13% or 65 cents to R56,90, Nedcor lost 1,44% or 85 cents to R58,15 and Standard Bank slipped 20 cents to R45,30.
South African Reserve Bank Governor Tito Mboweni said on Monday that the government wants South Africa’s major banks to remain in local hands, thereby dispelling the rumours that one of them is the target of a foreign takeover.
Financial services group Sanlam surrendered 1,55% or 15 cents to R9,55 and Old Mutual dipped 10 cents to R12,90.
Real estate company Liberty International plc was 1,09% or R1,09 in the red at R98,71.
On the industrial index, the MTN Group weakened 1,32% or 40 cents to R29,85.
Pulp and paper producer Sappi was 1,51% or R1,39 softer at R90,80 and hospital group Netcare weakened 2,24% or 11 cents to R4,81.
Steel producer Ispat Iscor was down 1,89% or 90 cents at R46,60.
On the JSE’s upside, London-listed beverages group SABMIller strengthened 30 cents to R84,70 and Swiss-listed luxury goods group Richemont rose five cents to R17,65.
Transport and logistics group Imperial improved 41 cents to R76,21 and retailer Massmart rallied 1,1% or 40 cents to R36,70.
Niche banking group Investec plc was 99 cents in the black at R124,99 and life assurer Metropolitan Holdings surged 3,03% or 25 cents to R8,50. Its intraday high of R8,70 was its best since January 2002. — I-Net Bridge