The JSE Securities Exchange (JSE) was drifting in the red at midday on Monday on the back of profit-taking after its strong rally last week and softer European markets. Dealers said that there was also a general lack of interest in the market, which had no fresh news to drive it.
By 11.59am, the all-share index was down 0,27%. Resources retreated 0,99% and the gold- and platinum-mining indices gave up 1,33% and 0,53% respectively. The all-share industrial index was flat (-0,02%). Financials firmed 0,63% and the banks index was 1,95% better.
The rand was quoted at R6,53 per dollar from R6,57 when the JSE closed on Friday, while gold was quoted at $403,80 an ounce, little changed from its level when the JSE last closed.
A dealer said that while there was a bit of volume coming through the market related to position-squaring from Thursday’s futures close-out, natural business going through the market was small.
“We’ve got the holiday here on Friday and Japan is closed today and there is not much interest in the market. Everyone is waiting for the Fed tomorrow,” he said.
He attributed the JSE’s weakness on the day to profit-taking after last week’s rally and weakness on European markets.
The market is expecting the United States Federal Open Market Committee to increase the federal funds rate by 25 basis points to 1,75%. It is likely to focus on the statement that accompanies the committee’s decision for clues to future rate moves. This could give the dollar direction until the US presidential election on November 2.
The JSE is closed on Friday for Heritage Day.
In morning trade, London-listed diversified miner Anglo American lost 1,45% or R2,20 to R150 and BHP Billiton weakened 1,45% or 95 cents to R64,55.
Gold Fields fell 1,35% or R1,10 to R80,20 and Harmony surrendered 80 cents to R82. AngloGold Ashanti shed 1,42% or R3,42 to R236,96.
Impala Platinum slipped 1,32% or seven rand to R525, but AngloPlat added 96 cents to R288,01.
Petrochemicals group Sasol jumped 1,13% or R1,40 to R125,20, boosted by the higher oil price. Sasol earlier traded at R125,40 — its highest since April 2002.
On the all-share industrial index, Swiss-listed luxury goods group Richemont retreated 17 cents to R17,84 and London-listed brewer SABMiller slumped 1,94% or R1,64 to R83.
Hospital group Netcare was 1,01% or five cents in the red at R4,90.
Beverages group ABI, SABMiller’s subsidiary, was down 1,16% or 99 cents to R84.
While telecoms group Telkom tumbled 1,35% or one rand to R73, cellular network operator MTN Group leaped 2,92% or 89 cents to R31,39.
Retailer Edcon rallied 3,58% or R6,45 to R186,50 and furniture group Steinhoff surged 2,06% or 20 cents to a lifetime high of R9,90.
On the financial front, Standard Bank strengthened 2,11% or one rand to R48,50 and Absa advanced 1,56% or 96 cents to R61,40. FirstRand firmed 1,81% or 21 cents to R11,81 — its highest since 1998 — and RMB Holdings rocketed 2,82% or 50 cents to R18,20.
Nedcor climbed 1,3% or 75 cents to R58,25.
Absa touched a lifetime high of R61,50 earlier in the day, while RMH traded at its highest levels since 1998, of R18,25.
On the downside, London-listed financial services group Old Mutual fell 1,24% or 16 cents to R12,72 and niche banking group Investec plc plunged 2,2% or R2,90 to R129,20. — I-Net Bridge