The JSE Securities Exchange South Africa was weaker at midday on Monday on the back of weaker world markets and a stronger rand. Banking group Absa continued to dominate trade after Thursday’s news that the United Kingdom-based Barclays was in talks to acquire a majority stake in it.
By 12h05, the all share index was down 0,43%. Resources retreated 1,5% and the gold mining index dropped 1,95%. The platinum mining index was 0,68% softer. The all share industrial index eased 0,16%, but financials firmed 0,74% and the banks index was 1,54% better.
The rand was quoted at 6,40 per dollar from 6,43 when the JSE closed on Thursday, while gold was quoted at $408,80 an ounce from $411,03/oz at the JSE’s last close.
The JSE was closed on Friday due to the Heritage Day holiday.
A dealer said that the JSE’s weakness was in line with world markets, which were lower on concerns about the rampant oil price’s potential effects on the economy.
“The rand is strong as well, which is also impacting on our market — all our resources stocks are down,” he added.
He said that the gold price had come off and gold ADRs were down in the US overnight, which was further weighing on the gold sector.
While they were coming off their highs, banks continued to be the sector of choice on the back of Thursday’s news of Barclays interest in Absa. Rumours that a local bank was the target of a foreign takeover drove banking shares to new highs in recent weeks.
While Absa was last quoted up 35 cents at R63,10, it touched a lifetime high of R64,55 in morning trade.
Sanlam, which holds a 21% stake in Absa, was 2,67% or 28 cents stronger at R10,75. Its intraday high of R11 was its best since August 2001.
Standard Bank surged 2,5% or R1,20 to R49,20 after earlier trading at a best-ever level of R49,30.
FirstRand firmed 1,45% or 17 cents to R11,90 and Nedcor climbed 30 cents to R58,30.
Other advancers included London-listed brewer SABMiller, which was 1,33% or R1,10 stronger at R83,90. SABMiller said in a trading update on Thursday that its financial performance in the five-month period to 31 August 2004 was strong, and earnings growth was recorded in all of its businesses.
Hospital group Netcare gained 1,23% or six cents to R4,93 and food group Tiger Brands firmed 70 cents to R97,95 after trading at a lifetime high of R99 in morning trade.
Retailer JD Group jumped 2,69% or R1,35 to R51,50 and Pick ‘n Pay perked up 1,51% or 30 cents to R20,20. Pick ‘n Pay traded at a best ever R20,28 on Monday morning, while JD Group’s high of R51,70 was its best since February 2000.
On the JSE’s downside, London-listed diversified miner Anglo American lost 1,74% or R2,60 to R146,50 and BHP Billiton slipped 1,39% or 90 cents to R63,80.
Gold miner Harmony plunged 3,04% or R2,60 to R82,80, Gold Fields tumbled 2,13% per R1,78 to R81,80 and AngloGold Ashanti shed R2,41 to R242,98.
Impala Platinum weakened 1,18% or six rand to R504. Swiss-listed luxury goods group Richemont was 1,75% or 31 cents in the red at R17,45 after going ex-dividend of 31,82 cents per share.
Transport and logistics group Imperial, which went ex-dividend of 175 cents per share, slumped 2,15% or R1,75 to R79,65.
Cellular network operator MTN Group surrendered 1,27% or 40 cents to R31, while Telkom gave up 1,19% or 89 cents to R74,10. – I-Net Bridge