The JSE Securities Exchange (JSE) recouped early losses to trade slightly higher just after midday on Wednesday in a primarily order-driven market. Dealers said that a slight weakening in the rand from levels seen earlier in the morning was also helping.
By 12.12pm, the all share index was up a marginal 0,06%. Financials and resources firmed 0,09% and 0,17% respectively, while the banks index was 0,39% better. The gold and platinum mining indices slumped 1,57% and 1% respectively and the all share industrial index eased 0,07%.
The rand was quoted at R6,32 per dollar from R6,34 when the JSE closed on Tuesday, while gold was quoted at $426 a troy ounce from $426,30/oz at the JSE’s last close.
“The rand has weakened a bit — it was trading at R6,29 this morning. I think that after the inflation data some people believe there will be a rate cut and a bit of positive sentiment is coming through to the market. I think people are grasping at straws,” a dealer commented.
South Africa’s CPIX inflation (headline inflation excluding mortgage costs) was up 3,1% year-on-year (y/y) for metro and other areas in February — the lowest CPIX ever — compared with 3,6% y/y in January, Statistics South Africa (Stats SA) said on Wednesday.
CPIX was up 0,1% month-on-month (m/m) in February compared with a 0,5% m/m increase in January.
South Africa’s CPIX, which is used by the South African Reserve Bank for its inflation target, was expected to rise to 3,3% y/y, according to a survey of economists conducted by I-Net Bridge. Forecasts ranged from 3,0% y/y to 3,5% y/y.
The dealer added that while there had been offshore selling earlier in the day, buying was now coming through, particularly in BHP Billiton.
“The market is very order driven at the moment,” he said.
BHP Billiton and Anglo American had both turned positive in London, although the FTSE remained in the red.
On the local bourse, Billiton shares were up 75c at R83,40. Anglo American was up 70c at R148.
Petrochemicals group Sasol was 59c stronger at R143,99.
Gold Fields, however, fell 1,3% or 95c to R72,40.
Harmony was 1,35% or 68c weaker at R49,65 and AngloGold Ashanti shed 1.86% or R4,10 to R216,50.
AngloPlat weakened 1,19% or R2,75 to R229 and Impala was off 1,15% or R6 at R517.
On the industrial market, cellular network operator MTN Group soared 3,07% or R1,29 to R43.30.
Telkom bounced 1,01% or R1,05 to R104,80.
Johnnic Holding jumped 5,46% or 44c to R8.50.
Retailer Edcon rallied 2,91% or R7.50 to R265. Foschini was firmer 5c at R34,85. It was trading at R34,10 before it said in a trading statement that it expects its earnings and headline earnings per share for the year to end-March 2005 to be between 45% and 50% higher than those recorded in the year-earlier period.
Diversified industrial Imperial was up 1,48% or R1.40 at R96.05.
Industrials to decline included Swiss-listed luxury goods group Richemont, which retreated 1,01% or 20c to R19,70.
Mittal Steel plunged 3,07% or R2,05 to R64,80.
Pulp and paper producer Sappi was 1,68% or R1,30 softer at R76 and media group Naspers tumbled 2,07% or R1,50 to R71.
Financials to firm included Standard Bank, which was 1,15% or 70c in the black at R61,50. FirstRand was firmer 6c at R13,29, but Nedcor weakened 1.38% or R1,05 to R75.
London-listed financial services group Old Mutual was 6c in the red at R15,70, but Sanlam strengthened 5c to R12,15. — I-Net Bridge