After rallying to record highs for the previous three consecutive trading sessions, the JSE Securities Exchange South Africa (JSE) drifted weaker on Monday as players took profits. Losses were most pronounced at the top end of the market and the mid- and small-cap indices ended in the black.
The all share index closed 0,43% softer. Resources retreated 1,05% with the gold and platinum mining indices slumping 2,59% and 1,09% respectively. Industrials eased 0,16%. Financials firmed 0,22% and the banks index bounced 0,72%.
The rand was quoted at 6,55 per dollar from 6,54 when the JSE closed on Friday, while gold was quoted at $421,30 an ounce from $421,70/oz at the JSE’s last close.
On the all share index, 67 shares were up, 35 were unchanged and 58 were down. There were 26 decliners on the Top 40 index and only 12 advancers, while three shares were unchanged.
“I think the market just ran out of steam. The momentum that had been driving it for the last two weeks just took a breather and we saw some consolidation taking place,” a dealer said. “This doesn’t mean it is the end of the JSE’s rally. Resources — which have been a major driver — have had a phenomenal run overseas and they were bound to hit some resistance along the way.”
He added that while there had been profit taking at the top end of the market, other stocks that had lagged played a bit of catch up. While the JSE’s top 40 index was down 0,55% on Monday, the mid and small-cap indices were up 0,72% and 0,3% respectively.
On the resources market, London-listed Anglo American lost 1,36% or R2,15 to R155,50 and BHP Billiton weakened 1,18% or 86 cents to R71,80, after trading at a lifetime high of R73,45 in the morning session.
Gold miner Harmony dropped 3,62% or R3,35 to R89,15, Gold Fields fell 3,04% or R2,85 to R91 and AngloGold Ashanti dipped R1,45 to R248,75.
AngloPlat slid 2,87% or R8,10 to R274.
Petrochemicals group Sasol, however, strengthened 1,98% or R2,54 to R130,55. Its intraday high of R131,20 was its best since April 2002.
Swiss-listed luxury goods group Richemont led the downside of the industrial index, surrendering 1,39% or 26 cents to close at R18,39.
Junior miner Metorex was a feature on the upside, rocketing 15,58% or 31 cents to R2,30.
Metorex said in an announcement to the market on Friday that it expects an initial annual profit of $20-million on its $40-million Ruashi copper/cobalt project in the Democratic Republic of Congo.
Packaging group Nampak weakened 1,64% or 24 cents to R14,39.
Furniture group Steinhoff shed 1,45% or 15 cents to R10,20.
Retailer Edcon was down 1,52% or R2,99 at R194,01, while Nu Clicks dived 5,24% or 44 cents to R7,95 after it revealed that it expects its diluted headline earnings per share for the 12 months to end-August 2004 to be only 12,5% to 17,5% higher than those of the previous year, with its sales hit by the deflationary environment and tough retail conditions, as well as the uncertainty surrounding South Africa’s pharmacy sector.
Industrials to advance included steel producer Ispat Iscor, which jumped 2,86% or 15 cents to R50,20.
Hospital group Netcare leaped 2,86% or 15 cents to R5,40 after trading at a lifetime high of R5,45. Medi-Clinic soared 2,94% or 40 cents to a strongest ever R14.
Food group Tongaat surged 2,45% or R1,29 to R53,95 and Illovo soared 3,67% or 31 cents to R8,76. Tiger Brands ticked up 30 cents to R101.
Tongaat and Illovo touched their best levels since November 2002 when they traded at R54 and R8,85 respectively, while Tiger Brands reached an all-time high of R103.
Retailer Massmart rallied 5,64% or R2,15 to R40,25.
On the financial front, banking group Absa advanced 60 cents to R64, Standard Bank strengthened 40 cents to R50,80 and FirstRand firmed five cents to R11,85.
Investment company VenFin fell 1,59% or 35 cents to R21,65 and financial services group Sanlam dipped eight cents to R10,72. – I-Net Bridge