The JSE Securities Exchange was drifting in the red at noon on Tuesday, with a stronger rand and negativity from offshore weighing on heavyweight resources stocks. Volumes were fairly light when compared with recent days, however, and less than R900-million worth of shares had changed hands in morning trade.
By 12.02pm, the all share index was down 0,59%. Resources retreated 1,36% and the gold mining index surrendered 1,1%, but the platinum mining index picked up 0,45%. Industrials were flat (-0,06%) and financials fell 0,28%, while the banks index bounced 0,19%.
The rand was quoted at 6,05 per dollar from 6,07 when the JSE closed on Monday, while gold was quoted at $437,60 an ounce from $437,55/oz at the JSE’s last close.
A dealer said that after the brisk trade seen over the past few days, volumes had tapered off making for the quietest morning seen on the JSE over the last week-and-a-half.
“Sasol has been under pressure and is leading the market down. This is just on the back of the lower oil price — oil stocks are all down offshore,” she commented.
“The stronger rand seems to be adding to the pressure there.”
She added that mining stocks, such as BHP Billiton and Anglo American were down in London and this weakness was filtering through locally.
The acrimonious hostile takeover bid by gold miner Harmony for rival Gold Fields continued to weigh on these stocks, she noted.
In morning trade, Sasol shares slumped 2,98% or R3,75 to R122,25.
BHP Billiton lost 1,98% or R1,30 to R64,30 and Anglo American eased R1,30 to R141,70.
Gold Fields gave up 1,62% or R1,37 to R83,15 and Harmony weakened 1,75% or R1,16 to R65.
Gold Fields chairperson Chris Thompson made an impassioned appeal on Tuesday to shareholders to reject Harmony’s hostile bid for the company, saying it had already destroyed seven billion rand in combined potential value for shareholders.
AngloGold Ashanti inched up 50 cents to R251,50, AngloPlat added 72 cents to R229,22 and Impala improved two rand to R528.
On the industrial market, London-listed brewer SABMiller, which earlier traded at a best ever R95, was just two cents in the black at R94.
Brand management group Barloworld was 50 cents better at R94,50 after trading at a best ever R95,75, while its subsidiary cement producer PPC was R1,50 stronger at R258 after touching an all time high of R260.
Pulp and paper producer Sappi firmed 1,25% or 95 cents to R77. Retailer Pick ‘n Pay jumped 2,39% or 30 cents to R22,33, while Nu Clicks climbed 1,53% or 14 cents to R9,30 rand — its strongest since September 2001.
Industrials to decline included Swiss-listed luxury goods group Richemont, which dipped five cents to R18,40.
Services group Bidvest slid 1,31% or one rand to R75,50 and cellular network operator MTN Group was off 30 cents at R33,10.
On the financial index, Standard Bank was 35 cents better at R56,80 and Nedcor bounced 63 cents to R69,84. London-listed financial services group Old Mutual lost 1,59% or 22 cents to R13,65 and Sanlam surrendered 11 cents to R11,32.
Life assurer Metropolitan Holdings leaped 2,19% or 20 cents to R9,35 rand after it reported an 89% rise in its new business annual premium equivalent for the third quarter of 2004, to R519-million from R275-million a year earlier, helped by improvements in the group’s new business premiums across the board. – I-Net Bridge