After setting fresh highs on Friday morning, the JSE Securities Exchange (JSE) has pulled back, with some profit-taking emerging amid a slightly firmer rand.
The JSE started on a slightly stronger note, with most of the major indices posting small gains at the opening. The all-share and industrial indices touched fresh record highs of 12359,79 and 10905,74 respectively in early trade, surpassing the previous day’s record. However, both indices have since moved off these highs.
At noon, the all-share index was off 0,69% and the industrial index was flat (up 0,03%). The gold-mining index declined 1,45%, resources were off 131% and the platinum index shed 0,47%. The financial index fell 0,62% and the banks index was 1,56% lower.
The rand was quoted at R6,18 per dollar, compared with R6,20 when the JSE closed on Thursday, while gold was quoted at $435,68 a troy ounce from $433,90/oz at the JSE’s last close.
Dealers said the pullback on the JSE had not been unexpected after the strong run the bourse has enjoyed this week.
“We opened quite firm, but that did not last long. We need this breather after the strong run. Volumes are definitely slower today, but we have seen phenomenal volumes this week. We have had some profit-taking and are likely to see more position squaring today,” said an equities trader.
In the resources sector, Anglo American was down R22,40, or 1,65%, to R143,30, while BHP Billiton shed 70 cents to R66.
In the gold sector, Gold Fields was down R2,60, or 2,95%, to R85,56, while Harmony was down R3, or 4,26%, to R67,50.
News is awaited from the Harmony shareholders’ meeting, which is voting on the bid for rival Gold Fields.
However, AngloGold Ashanti was up R6,40, or 2,66%, to R247 in reaction to the firmer gold price.
In the industrial sector, SABMiller shed 30 cents to R94, but luxury goods group Richemont added 45 cents to R18,55.
Sasol was down R2,50 to R127,50, and pulp and paper group Sappi shed R1,50, to R76.
After a strong run this week following better than expected results, retailer Edcon gave back R6,12, or 2,43%, to R246,10.
Among banking stocks, Nedcor, which had a good run on Thursday, was off R1,25 to R72. — I-Net Bridge