The JSE Securities Exchange (JSE) was in the red in noon trade on Tuesday due to profit-taking following the bourse’s rally to a record high on Monday. Poor performances by heavyweight stocks offshore and lower commodity prices added to the negative picture.
By 12.01pm, the all-share index shed 0,54%. Resources retreated 1,38%, the gold mining index slumped 1,83% and the platinum-mining index weakened 0,69%. Industrials were 0,26% softer. Financials inched up 0,07% and the banks index was 0,59% better.
The rand was quoted at R5,70 per dollar from R5,65 when the JSE closed on Monday, while gold was quoted at $425,63 an ounce from $430,90/oz at the JSE’s last close.
“We are seeing a bit of profit-taking. When London was closed [for a bank holiday] yesterday [Monday], the JSE ran ahead of itself and was pushed up on thin volumes. It is just backtracking to realistic levels,” a dealer said.
She added that some of the local heavyweights were also down offshore on Monday night and on Tuesday morning.
“Gold shares are under pressure, with gold falling below $430/oz. Gold ADRs were down between 2% and 3% overnight and the S&P gold index was down almost 4%,” she said.
Global steel stocks were weaker, which was weighing on Ispat Iscor.
The dealer said that while some stocks had bucked the trend and gone better, for the most part their gains came on thin volumes.
On the JSE’s downside, London-listed diversified resources group Anglo American tumbled 2,01% or R2,71 to R131,80.
AngloGold Ashanti weakened 1,6% or R3,25 to R200, Gold Fields fell 2,14% or R1,50 to R68,50 and Harmony retreated 1,26% or 65 cents to R51,10.
Petrochemicals group Sasol slid 2,72% or R3,40 to R121,50.
The dealer said that in addition to having been pushed up on Monday, Sasol was being hit by the lower oil price. She noted that light sweet crude was down about 2% over the past couple of days and there was a view that oil could pull back further.
Swiss-listed luxury goods group Richemont was off 1,05% or 20 cents at R18,85 and London-listed brewer SABMiller slipped 1,4% or R1,35 to R95.
Steel producer Ispat Iscor slumped 2,38% or R1,50 to R61,50.
Cellular network operator MTN surrendered 1,43% or 65 cents to R44,84.
London-listed financial services group Old Mutual was down 10 cents at R14,40. Banking group Nedcor eased 20 cents to R76,80 and Absa dipped 65 cents to R76,20.
On the JSE’s upside, pulp and paper producer Sappi surged 1,85% or R1,50 to R82,50.
Media group Naspers picked up 1,07% or 80 cents to R75,30.
Transport and logistics group Imperial rose R1,05 to R107 after earlier reaching a best-to-date R108.
Retailer Edcon bounced 1% or three rand to R302,50. Woolies was up 1,29% or 15 cents at R11,80 and Mr Price picked up 10 cents to trade at a highest-to-date R12,50. Woolies earlier touched a lifetime high of R11,85.
Construction and engineering group Aveng rocketed 4,08% or 49 cents to a best-to-date R12,50.
Banking group FirstRand firmed 2,49% or 34 cents to a strongest-to-date R14.
Investment trust VenFin rallied 3,45% or 90 cents to R26,95 — its strongest since September 2000.
Financial and risk services group Alexander Forbes advanced 3,21% or 35 cents to R18,35. It was also the morning’s most active stock. — I-Net Bridge