The JSE Securities Exchange (JSE) was marginally weaker at midday on Tuesday in a currency- and order-driven market. Volumes were reasonable and up considerably on Monday as trade normalised after the Christmas holidays.
By 11,59am, the all-share index was off 0,17%. The gold-mining index slumped 1,51%. Industrials eased 0,21%, while the financial and banks indices fell 0,52% and 0,53% respectively. Resources ticked 0,18% higher and the platinum-mining index picked up 0,51%.
The rand was quoted at R5,97 per dollar from R5,99 when the JSE closed on Monday, while gold was quoted at $422,30 a troy once from $419,90/oz at the JSE’s last close.
“The market is slightly weaker, although there is not much in it, basically on the rand,” a dealer said. “There were some positive articles on Billiton — Goldman Sachs reiterated its buy signal — and it is up, and Anglo is only slightly off because of that.”
He continued, however, that the stronger rand was weighing on gold stocks.
“Some of the banking stocks are a bit easier and there is negative sentiment coming into retailers,” he said.
He explained that banks were quite a lot stronger on Monday, driven by rumours that United Kingdom-based Standard Chartered is interested in buying a stake in FirstRand, probably in the form of First National Bank.
However, in media reports published on Tuesday, Standard Chartered has denied it is in talks to buy FNB and this could have sparked a sell-off in the sector.
The dealer said that overall, the market was a bit order-driven, while the resources sector was being affected by the rand.
On the resources market, BHP Billiton rallied 1,97% or R1,30 to R67,40, while Anglo American dipped 24 cents to R137,51.
Petrochemicals group Sasol slid 1,38% or R1,65 to R118,35.
Gold miner Harmony plunged 3,08% or R1,75 to R55, Gold Fields weakened 1,61 or R1,21 to 74 rand and AngloGold gave up R1,02 to R203,98.
AngloPlat, however, added two rand to R225,50 and Impala Platinum inched up two rand to R507.
On the industrial market, Services group Bidvest tumbled 2,5% or R1,95 to R76,05. Pulp and paper producer Sappi shed 2,37% or two rand to R82,50 and steel giant Ispat Iscor was 1,61% or one rand softer at R61.
Retailer Edcon retreated 1,58% or R4,49 to R280,01 and Foschini slipped 1,67% or 65 cents to R38,25.
Massmart, however, strengthened 1,51% or 65 cents to R43,65 after it said in a trading update late Monday that its sales had grown 13,8% to R13,9-billion for the 26 weeks to December 26 2004, with sales before acquisitions rising 11,4% and comparable store sales rising 8,2%, compared with the year-earlier period.
Cellular network operator MTN Group 30 cents lower at R41, but Telkom climbed 65 cents to R96,15.
Swiss-listed luxury goods group Richemont rose 14 cents to R19,16.
Chemical and explosives group AECI rocketed 3,86% or R1,59 to a best-to-date R42,75, while construction group Aveng roared ahead 2,97% or 39 cents to R13,50.
On the financial front, FirstRand fell 1,62% or 22 cents to R13,20. RMB Holdings, its major shareholder, was 1,17% or 25 cents in the red at R21,15. Standard Bank slipped 30 cents to R61,70.
Absa, however, climbed 1,35% or 98 cents to R73,65, while Nedcor was six cents in the black at R75,06.
London-listed financial services group Old Mutual lost 1,51% or 22 cents to R14,35 and Sanlam surrendered 10 cents to R12,35. — I-Net Bridge