After starting slightly firmer, the JSE Securities Exchange (JSE) turned around during the course of Tuesday’s morning session as the main indicators pointed to a lower opening on Wall Street later.
However, there were pockets of strength on the JSE, notably in banking stocks and telecoms stocks, a trader said.
By midday, the all-share and all-share industrial indices were down 0,45% and 0,78% respectively. Financials were flat, but the banks index was 0,66% better. Resources were 0,45% softer and the gold-mining index was off 0,37%. The platinum-mining index was up just 0,10%.
The rand was quoted at R6,09 per dollar from R6,07 when the JSE closed on Monday, while gold was quoted at $434,88 a troy ounce from $433,40/oz at the JSE’s last close.
“We looked like we were wanting to go a bit firmer this morning on the weaker rand, but the currency has steadied around the R6,08 to R6,09 level and the United States futures are weaker, pointing to a negative start on Wall Street,” said an equities trader.
He added that the Dow Futures were down 26 points and the S&P futures were off 3,6 at the time, pointing to a weak opening for US markets when they open later on Tuesday afternoon.
The trader added that with local markets closed on Wednesday for a public holiday and with next Monday also being a public holiday, volumes were “not spectacular”.
“There’s really no reason for the market to higher,” he said.
After being under severe pressure on Monday, when the index fell almost 5%, gold counters recovered a bit on Tuesday morning, but that was short-lived.
A trader said earlier that the recovery would likely be limited. On Monday, Harmony reported poor results and the rest of the gold majors are due to report on Thursday and Friday.
London-listed diversified resources group Anglo American was down 70 cents to R136,30 and BHP Billiton was 66 cents softer at R77,85.
Petrochemicals group Sasol strengthened 50 cents to R148.
Luxury goods group Richemont shed 42 cents, or 2,2%, to R18,68. Earlier, the group said its unaudited sales for the year ended March 31 2005 amounted to €3,717-billion. Total sales for the year were 10% above the prior year at actual exchange rates.
The dealer said Richemont’s figures were “slightly disappointing”.
Johnnic Holdings was up 30 cents, or 3,16%, to R9,80. Earlier gaming and entertainment group Gold Reef Casino Resorts announced it has acquired 16,5-million shares or a 9,9% interest in Johnnic Holdings in various open-market trades.
The average price paid for the Johnnic shares was R9,46 per share, amounting to a total cash consideration of approximately R156-million.
Gold Reef’s share price was unchanged at R13,15.
Mittal Steel was down four cents to R55,15 after being up R1,71 earlier after the group reported headline earnings per share of 354 cents for the quarter ended March 31 2005, from 150 cents in the corresponding period a year ago.
Headline earnings were up 136% at R1,578-billion from R669-million a year ago. The group said earnings were driven primarily by a substantial increase in global steel prices and cost containment through cost savings.
The figures were described as “in line” with expectations.
Among gold shares, AngloGold Ashanti was up 223 cents, or 1,11%, to R202,50, but the others were mostly weaker. Harmony was off 95 cents, or 2,38%, to R39,05 and Gold Fields was 65 cents, or 1,04%, lower at R61,65.
Among banks, Absa was 41 cents better at R77,01 as the market awaits further developments in the bid by Barclays for a stake in the South African banker. Nedcor advanced one rand to R74,20, and Standard Bank collected 31 cents to R62,32.
Massmart was up 10 cents to R43,10. Earlier, the company announced it had acquired 84,1% of the issued shares and all the shareholders loans in Moresport for a cash consideration of R403,8-million.
Moresport owns three successful retail brands operating in South Africa — Sportsmans Warehouse, Sport Shoe World and Outdoor Warehouse.
Among telecoms shares, Telkom was up R1,55, or 1,55%, at R101,35, bouncing off a three-month low. However, MTN was 19 cents softer at R41,41. — I-Net Bridge