The JSE Securities Exchange (JSE) was weaker in noon trade on Thursday — having traded at its worst level since February earlier in the session — despite a softer rand. Negative global sentiment and poor performances by heavyweight dual-listed stocks offshore were weighing on the local bourse, dealers said.
By 12.03pm, the all-share index slipped 0,76%. Resources retreated 1,1% and the gold-mining index gave up 1,02%. Industrials lost 0,34%, financials fell 0,88% and the banks index was 0,22% in the red. The platinum-mining index perked up 0,9%, however.
The rand was quoted at R6,18 per dollar from R6,13 when the JSE closed on Wednesday, while gold was quoted at $427 a troy ounce from $428,48/oz at the JSE’s last close.
“The market is looking absolutely shocking. It is weaker even in the face of the softer rand and there seems to be a negative trend going through,” a dealer said.
He continued that world markets were all down, which was not helping the JSE’s cause.
“Gold stocks were hammered in the [United] States last night, especially Gold Fields and Harmony.
“Anglo and Billiton are down in London — Billiton was down 4% in Australia.”
He said that players in Australia did not seem to like Wednesday’s news that it had settled for an iron-ore contract price increase of 71,5% — the same increase achieved by its two major competitors — when it had wanted more. Lower oil and base metals prices were also weighing on the share.
“Miners globally are taking a bit of a back seat right now,” the dealer commented.
He said that Mittal Steel was up because a large buying order had gone through the market and platinum stocks were benefiting from the weaker rand and buoyant platinum price.
“The rest of the market is looking very dreary,” he lamented.
Mittal Steel was 1,72% or one rand stronger at R59.
AngloPlat advanced 1,58% or R3,80 to R245 and Impala improved four rand to R522.
DRDGold bounced five cents to R5,10.
Retailer Pick ‘n Pay rallied 4,24% or 95 cents to R23,35 and Woolies climbed seven cents to R9,62.
Shoprite rose 10 cents to R13,80 and JD Group gained 42 cents to R61,50.
On the downside, Anglo American weakened one rand to R142,40 and BHP Billiton lost 1,56% or R1,25 to R79.
Petrochemicals group Sasol slumped 2,06% or R3,10 to R147,70.
Gold Fields fell 1,21% or 80 cents to R65,25 and Harmony was R1,01 or 44 cents in the red at R43,30, although it was well off its three-and-a-half year low of R42,85 reached earlier in the day.
Junior miner Western Areas dropped 4,76% or R1,20 to R24.
Aflease dived 7,85% or 27 cents to R3,17.
On the industrial market, pulp and paper producer Sappi was 1,69% or R1,20 softer at R69,70. Its intraday low of R69 was its weakest since September 2001.
Cellular network operator MTN Group surrendered 1,06% or 45 cents to R41,85.
Leading financials lower, London-listed Old Mutual plunged 4,16% or 66 cents to R15,19.
Alexander Forbes plummeted 8,44% or one rand to R10,85.
Before the opening, the financial and risk services group said in a trading statement that although there has been a strong operational performance across most of its businesses, it expects to record headline earnings per share of between 108 and 115 cents for the year ended March 31 2005 — down 15% to 20% compared with the previous year’s restated 135 cents.
Banking group Nedcor weakened 1,92% or R1,40 to R71,40 and Standard Bank was 34 cents in the red at R60,01.
While Investec plc was 1,54% or R2,90 lower at R185,10, Investec jumped 1,97% or R3,50 to R181,60. — I-Net Bridge