The JSE Securities Exchange (JSE) was weaker at midday on Wednesday, dragged down by resources heavyweight Anglo American, which released below consensus results, and weaker world markets. Dealers said that the market’s focus was on Minister of Finance Trevor Manuel’s 2005/06 Budget speech at 2pm.
By 11.53am, the all-share index was 0,1% softer. Industrials and financials fell 0,16% and 0,25% respectively, while the banks index was 0,88% in the red. Resources inched up 0,07%, but the gold-mining index surrendered 0,58% and the platinum-mining index tumbled 2,32%.
The rand was quoted at R5,82 per dollar from R5,77 when the JSE closed on Tuesday, while gold was quoted at $433,75 a troy ounce from $429,25/oz at the JSE’s last close.
“The highlight of day was Anglo’s results, which missed estimates. The stock is under pressure in the UK and in our market as well,” a dealer said.
She added that BHP Billiton, on the other hand, was up after a very strong performance in Australia. It was boosted by news that Japanese steel producer Nippon Steel was to pay Rio Tinto 71% more for iron ore.
This increase is the same level that Brazilian iron-ore producer Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, settled with Nippon Steel on Tuesday.
“Overall, there is a bit of profit-taking coming through on the back of world markets. Everyone is waiting for the Budget and the market is reasonably quiet,” the dealer concluded.
Anglo American shares were R1,45 weaker at R145,30. At 9am, the company reported headline earnings per share for its 2004 year of 188 United States cents, up 57% from 120 US cents in 2003, Anglo said in a statement.
BHP Billiton was 1,76% or R1,40 better at R80,90.
Petrochemicals group Sasol climbed 1,31 rand to R139,25, but gold-miner Gold Fields fell 1,45% or one rand to R68.
AngloPlat slid 2,98% or R7,20 to R234,75 and Impala retreated 2,11% or R11,01 to R509,99.
Swiss-listed luxury goods group Richemont was down 1,5% or 28 cents at R18,39 and pulp and paper producer Sappi was 50 cents softer at R78,50.
Standard Bank slipped 1,57% or R1,02 to R63,88, FirstRand fell 13 cents to R13,92 and Nedcor shed 75 cents to R77,05.
Niche banking group Investec plc, however, bounced 1,16% or two rand to R174. — I-Net Bridge