The JSE Securities Exchange (JSE) was slightly stronger in noon trade on Wednesday, with a softer rand supporting resources stocks. The heavy weight of resources kept the bourse in the black, even though decliners outnumbered advancers on the resources index by about two to one.
By 12.01pm, the all-share index added 0,13%. The resources and platinum-mining indices rallied 1,5% and 0,79% respectively, while the gold-mining index picked up 1,71%. Financials fell 0,67% and the banks index was 1,6% weaker.
The rand was quoted at R6,10 per dollar from R6,07 when the JSE closed on Tuesday, while gold was quoted at $440,85 a troy ounce from $440,75/oz at the JSE’s last close. On Tuesday, the rand broke above R6 per dollar for the first time since February 17 in line with weakness in emerging-market high-yielding currencies.
“The market is slightly higher. It is mainly a rand play again. All the resources stocks are a lot firmer on the back of the currency,” a dealer said.
On the resources index, London-listed Anglo American advanced 2,38% or R3,45 to R148,40.
BHP Billiton was 1,24% or R1,05 better at R85,70 after earlier trading at a best-to-date R86,90.
Gold miner Harmony jumped 2,29% or R1,20 to R53,50, Gold Fields gained 1,94% or R1,46 to R76,71 and AngloGold Ashanti added 1,12% or R2,55 to R231.
AngloPlat strengthened two rand to R230 and Impala improved four rand to R493.
On the industrial market, cellular network operator MTN Group was again under pressure, plunging 3,24% or R1,50 to R44,75.
MTN shares were down 2,6% on Tuesday on reports that quoted the Nigerian Investment Promotion Commission as saying that the pioneer status on all GSM operators had been suspended in August 2004.
The reported contradicted a statement released by MTN on Monday afternoon that said the company has certification in respect of such pioneer status, which exempts it from paying taxes at a rate of 30% on profits.
“There is a lot of confusion over whether the tax holiday has ended or not. If MTN has to pay 30% tax, it is going to impact a lot on its earnings. MTN is too heavily invested in Nigeria to pull out of the country and I think the government there knows this,” the dealer commented.
Telkom gave up 1,73% or two rand to R113,50.
Mittal Steel slipped 1,88% or R1,25 to R65,20 and brand management group Barloworld weakened 75 cents to R105.
Retailer Pick ‘n Pay tumbled 2,75% or 65 cents to R23. Foschini slid 2,44% or 90 cents to R36 and Woolies weakened 2,03% or 21 cents to R10,15.
Pulp and paper producer Sappi, however, strengthened 1,51% or R1,21 to R81,20.
London-listed brewer SABMiller climbed 60 cents to R98,65, after trading at a record high of R99 in early trade.
On the financial front, investment trust VenFin firmed 1,66% or 45 cents to R27,50.
Real-estate company Liberty International plc was up 1,06% or R1,20 at R114,20.
London-listed financial services group Old Mutual was 1,06% or 17 cents firmer at R16,18. Its intraday high of R16,38 was its strongest since June 2002.
The dealer said that just as it was helping resources, the weaker rand was weighing on banks.
Standard Bank slipped 2,03% or R1,30 to R62,65, FirstRand fell 1,45% or 20 cents to R13,60, Absa surrendered 75 cents to R76,75 and Nedcor lost 1,36% or R1,10 to R79,90. — I-Net Bridge