The JSE Securities Exchange was weaker at midday on Monday, dragged down by a softer rand and poor performances by heavyweight dual-listed stocks offshore. A couple of counters went ex-dividend, which added to the market’s losses.
By 12.2pm, the all share index was down 0,77%. The financial and banks indices fell 0,86% and 1,56% respectively. Industrials eased 0,29%. Resources retreated 1,2% and the platinum mining index surrendered 0,34%, but the gold mining index gained 0,77%.
The rand was quoted at 6,08 per dollar from 6,18 when the JSE closed on Friday, while gold was quoted at $428,15 a troy ounce from $425,30/oz at the JSE’s last close.
“The market is coming off. The rand has firmed quite a bit, which is impacting on the resources market,” a dealer said.
He added that world markets were also slightly down, which was contributing to the JSE’s weakness.
The dealer noted that as was the case on world markets, volumes on the JSE were light. Just over half a billion rand worth of shares had changed hands.
Stocks such as Standard Bank had started trading without their dividends so while their losses were not unexpected, they nevertheless were taking the JSE even lower, he said.
On the resources index, BHP Billiton tumbled 2,9% or R2,46 to R82,29 and Anglo American lost R1,30 to R145,20. Both were down in London.
According to AFX, shares in UK blue chip miners were under pressure on the back of negative comment in the influential business magazine Barrons, dealers said.
The publication compared the mining sector, which has enjoyed a buoyant run on the back of record commodity prices, to technology stocks before the tech bubble burst in 2000.
According to the article, investors have not priced in any risk of China’s growth story coming to an abrupt end.
Petrochemicals group Sasol slipped 85 cents to R154,45.
AngloPlat was off R1,50 to R235,50. Impala dipped one rand to R519.
Gold miner Harmony was 15 cents lower at R47,75, but Gold Fields gained 1,37% or 95 cents to R70,20 and AngloGold Ashanti advanced 1,34% or R2,89 to R218.
Standard Bank slid 3,24% or R2,05 to R61,30 after going ex-dividend of R1,81 a share.
FirstRand fell 12 cents to R13,10.
Short-term insurer Santam, which went ex-special dividend of R10 a share, nosedived 14,89% or R10,50 to R60.
London-listed financial services group Old Mutual lost eight cents to R15,22 and Sanlam was four cents in the red at R12,35.
African Life, however, added 10 cents to R23,40 and health and life insurer Discovery climbed 10 cents to R19,90.
Cellular network operator MTN Group gave up 1,11% or 50 cents to R44,50.
Mittal Steel was 24 cents softer at R59,25. Services group Bidvest shed 50 cents to R69,05 and construction and engineering group Aveng slumped 2,19% or 25 cents to R11,15.
Swiss-listed luxury goods group Richemont was eight cents lower at R19,85 and London-listed brewer SABMiller dipped 21 cents to R94,90.
It was announced earlier that China Resources Snow Breweries, an associate of SABMiller and a subsidiary of Hong Kong-listed China Resources Enterprise, had entered into an agreement with the Fuyang City government to acquire the assets of the Fuyang City Snowland Brewery Company in Anhui province for a cash consideration of $15-million.
However, the dealer described the acquisition as “minimal” for SABMiller and said that the market was unlikely to take notice of it.
He said that Lehman Brothers had upped its target price on SABMiller to 780 pence from 750 pence and, while it had retained its Underweight rating on the stock, it had included it in its European top pick portfolio.
Industrials to advance included Highveld Steel & Vanadium, which soared 3,23% or two rand to R64. Boosted by buoyant vanadium prices, it earlier traded at a best ever R64,50.
Retailer Edcon climbed R2,60 to R266,50 and food group AVI added 10 cents to 13 rand. – I-Net Bridge