The JSE Securities Exchange (JSE) was weaker in noon trade on Tuesday on the back of profit taking after the bourse’s rally to record highs in recent days. A stronger rand weighed on heavyweight dual-listed and resources stocks, adding to the negative picture.
At noon, the all share and all share industrial indices were 0,68% and 0,72% softer respectively. Financials fell 0,83% and the banks index was 1,34% in the red.
Resources retreated 0,54% and the gold mining index gave up 0,46%, but the platinum mining index picked up 0,225.
The rand was quoted at 5,77 per dollar from 5,79 when the JSE closed on Monday, while gold was quoted at $451,60 an ounce from $451,30/oz at the JSE’s last close.
“The market is pulling back a bit, which was a bit overdue,” a dealer said.
She added that stocks which have had a strong run of late, such as MTN group, Telkom and Kumba were under a bit of pressure.
“GDP figures came out this morning, which were way ahead of expectations. The rand has strengthened as a result and we are seeing dual-listed and resources stocks coming off.”
On the JSE’s upside, the dealer said that petrochemicals group Sasol was benefitting from the higher oil price.
A bit of buying was coming into AngloPlat and Impala, which have been under pressure recently.
As has been the case over the last couple of weeks, trade on the JSE was brisk, with over R1,5-billion worth of shares changing hands.
London-listed Anglo American, which is being included in the MSCI UK index from the close of business on Tuesday, dominated trade. Tracker funds need to buy Anglo to balance their portfolios.
Anglo shares were down 1,55% or R2,20 to R139,50, while BHP Billiton lost 51 cents to R67.
Gold miner Harmony shed 57 cents to R61,20. Gold Fields dipped 11 cents to R80,75 and AngloGold Ashanti eased 50 cents to R233,50.
Kumba tumbled 3,06% or R1,50 to R47,50.
Sasol, however, strengthened 2,09% or R2,40 to R117,50 and Impala improved three rand to R497.
Cellular network operator MTN Group plunged 3,16% or R1,30 to R39,85, while Telkom surrendered 1,98% or two rand to R99.
Swiss-listed luxury goods group Richemont lost 1,06% or 19 cents to R17,66.
Steel producer Ispat Iscor slipped 1,93% or R1,28 to R65,20.
Retailer Foschini slumped 2,74% or one rand to R35,50.
On the upside, Sun International surged 5,05% or R2,50 to R52. It earlier said in a trading update that adjusted headline earnings per share for the period ending December 2004 were anticipated to be between 50% and 70% higher than in the corresponding period last year, fuelled by strong trading, improvements in margins and lower borrowing costs.
On the financial index, London-listed Old Mutual fell seven cents to R14,25 and Sanlam tumbled 2% or 25 cents to R12,25.
Standard Bank slumped 1,91% or R1,15 to R59,20 and Absa was 2,38% or R1,71 in the red at R70,29.
African Life, however, soared 3,13% or 50 cents to R16,50.
On Monday, Aflife rocketed 6,67% or one rand to R16 after reporting a 75% rise in its headline earnings per share for the six months ended September 30, 2004, to 152,8 cents from 87,2 cents per share. The group declared an interim dividend of 42.5 cents per share, in line with its policy of declaring half of the total dividend of the previous year. – I-Net Bridge