The JSE Securities Exchange, which weakened sharply in early trade, was off its worst levels in noon trade on Thursday in a market that was very quiet ahead of the South African Reserve Bank Monetary Policy Committee (MPC) decision on interest rates due just after 3pm. Dealers expected the JSE to tread water until then.
By 11.52am, the all share and all share industrial indices were 0,22% and 0,3% softer respectively. Resources were down 0,24%, the platinum mining index slumped 1,28% and the gold mining index eased 0,12%. The financial (-0,05%) and banks (-0.02%) indices were flat.
The rand was quoted at 6,59 per dollar from 6,62 when the JSE closed on Wednesday, while gold was quoted at $414,25 an ounce from $412,15/oz at the JSE’s last close.
“The market is very quiet — everyone is waiting for the rates decision,” a dealer said.
“The market has come off its lows. It was under massive pressure when it opened, but is now more stable.”
He added that the bourse was likely to track sideways until the MPC announcement.
While the MPC was widely expected to leave the repo rate unchanged at 7,5%, players were remaining cautious. In August, the committee announced a surprise 50-basis-point cut in the repo rate, which sent the rand sprawling and boosted the JSE.
In morning trade, London-listed diversified resources group BHP Billiton lost 1,18% or 80 cents to R67, but Anglo American eked out a four cent gain to trade at R148.
Petrochemicals group Sasol strengthened 1,5% or R1,90 at R128,20.
AngloGold Ashanti shed R2,05 to R233,75, but Gold Fields gained 38 cents to R90,25.
Impala Platinum weakened 1,09% or R5,50 to R501 and AngloPlat surrendered 1,21% or R3,10 to R253,90.
Swiss-listed luxury goods group Richemont retreated 1,36% or 25 cents to R18,10. Pulp and paper producer Sappi eased 35 cents to R90,90 and services group Bidvest was off 39 cents at R62,90.
Retailer Edcon dropped 1,41% or R2,79 to R195,20 and Foschini fell 1,12% or 31 cents to R27,29. Truworths tumbled 1,98% or 25 cents to R12,35 and Woolies weakened eight cents to R8,72.
On the financial index, Investec was 1,42% or R1,80 in the red at R125,20, but RMB Holdings rose 15 cents to R18,30. – I-Net Bridge