The JSE Securities Exchange (JSE) was slightly softer in noon trade on Thursday, with a firmer rand and weaker world markets taking the edge off the local bourse. Banks and gold miners led the market’s upside, continuing Wednesday’s recovery from an oversold position.
At 11.58am, the all-share index was down 0,27%. Industrials lost 0,61%. The resources and platinum-mining indices retreated 0,35% and 0,95% respectively, but the gold-mining index gained 0,99%. The financial index firmed 0,29%, while the banks index was up 1,36%.
The rand was quoted at R6,23 per dollar from R6,26 when the JSE closed on Wednesday, while gold was quoted at $413,50 a troy ounce from $411,10/oz at the JSE’s last close.
The market is marginally down. The rand is a touch stronger and world markets are generally weaker,” a dealer said.
He added that while the gold price was up slightly, the rand was counteracting that. The demand for gold shares seen on Wednesday was nonetheless continuing.
“There is definitely impetus to buy gold shares. People believe they are a bit on the cheap side. Even with the stronger rand, they were up in the [United] States last night in rand terms,” he commented.
AngloGold Ashanti advanced 2,64% or R5,20 to R202, Gold Fields gained 19 cents to R68,10 and Harmony inched up five cents to R49,30.
Banking stocks were also recovering after being hit hard recently. Standard Bank leaped 2,38% or R1,50 to R64,50 and FirstRand was 1,5% or 20 cents firmer at R13,50. Absa added 65 cents to R74,95 and Nedcor ticked up 14 cents to R70,50.
Retailer Foschini strengthened 1,73% or 60 cents to R35,20, while generic medicines manufacturer Aspen Pharmacare surged 3,1% or 62 cents to R20,60.
On the JSE’s downside, steel producer Ispat Iscor dived 4,8% or three rand to R59,50.
At 9am,, Ispat Iscor reported basic headline earnings per share of 1Â 019 cents for the year ended December 31, from 360 cents a year ago.
A final dividend of 100 cents per share was declared from 75 cents a year earlier, making a total for the year of 400 cents, from 175 cents a year ago.
“Iscor only declared a dividend of one rand. They are sitting on a lot of cash and people are disappointed,” the dealer explained.
He added that Iscor has also said that its results in the first quarter of 2005 could be slightly affected by recently announced steel price decreases.
Other decliners included London-listed diversified miner Anglo American, which dipped 55 cents to R150,95.
Impala Platinum lost 1,31% or seven rand to R528 and AngloPlat was off one rand at R232.
Petrochemicals group Sasol slipped 1,54% or two rand to R127,49.
Pulp and paper producer Sappi tumbled 2,12% or R1,65 to R76,10.
Cellular network operator MTN Group was 1,33% or 60 cents in the red at R44,40, while Telkom gave up 85 cents to R106,15. — I-Net Bridge