Gold stocks were the main feature on the JSE Securities Exchange in noon trade on Friday, with Gold Fields coming under particular pressure following the sale of part of Harmony’s stake in the company in New York overnight. The market was flat overall and trade was brisk.
By 11.59am, the gold mining index dropped 3,97%. The resources and platinum mining indices lost 0,85% and 0,78% respectively. The all share index was flat. The all share industrial index climbed 0,39%, the financial index firmed 0,69% and the banks index was 1,46% in the black.
The rand was quoted at 6,81 per dollar from 6,82 when the JSE closed on Thursday, while gold was quoted at $423.10 a troy ounce from $422,45/oz at the JSE’s last close.
A dealer said that it had been a busy morning on the local bourse.
“Gold stocks are the main feature. Gold Fields were smashed in the States on the back of the placing of part of Harmony’s stake. There was a lot of argy-bargy in the stock this morning and it dropped 2% from the States’ levels. That is out of the way now and there is buying coming in.”
Harmony on Thursday sold about 30-million of the Gold Fields shares it bought as a result of its bid for Gold Fields, Harmony marketing director Ferdi Dippenaar confirmed on Friday.
As a result of its bid, Harmony bought a total of 56 606 482 or 11,5% of Gold Fields’ shares.
The Gold Fields shares were sold at $10,50 per share
Gold Fields shares dived as low as R72,11 earlier in the day and were last quoted 6,16% or R4,80 in the red at R73,10.
Harmony was down 2,49% or R1,34 at R52,40 and AngloGold Ashanti slipped 2,85% or R6,85 to R233,20.
The dealer said that diversified resources group Anglo American was also lower, in line with its performance in the UK. After a good performance over the past couple of days, some profit taking was coming in.
Anglo shares were off 1,18% or R1,95 at R163,15. Diversified miner Kumba gave up 1,14% or 75 cents to R65,25.
Impala Platinum was 1,03% or six rand lower at R576.
BHP Billiton, however, was 30 cents better at R84,75.
On the industrial market, Swiss-listed luxury goods group Richemont rose 1,14% or 25 cents to R22,20. Its intraday high of R22,30 was its strongest since July 2002.
Pulp and paper producer Sappi strengthened 1,61% or R1,1 to R70,01 and Mittal Steel was bolstered 1,03% or 51 cents to R50.
Brand management group Barloworld bounced 1,5% or R1,30 to R88,20 and its subsidiary PPC perked up 2,82% or R6 to R219.
Telecoms group Telkom leaped 2,48% or R2,80 to R115,70.
On the downside, London-listed brewer SABMiller was 82 cents softer at R101,18. Food group Tiger Brands fell 70 cents to R107,80 and Tongaat surrendered 1,53% or 90 cents to R57,90.
On the financial front, FirstRand forged ahead 2,62% or 35 cents to R13,70 after it said in a trading statement that its earnings per share, which includes translation gains or losses, and fully diluted headline earnings per share for the financial year ending 30 June 2005 are expected to exceed those of the comparative period by between 20% and 25%.
Standard Bank was 1,61% or R1 stronger at R63.
Financial services group Sanlam climbed 1,63% or 18 cents to R11,20.
Health and life assurer Discovery surged 4,55% or R1 to a best ever R23.
Life assurer Liberty, however, was 1,21% or 75 cents lower at R61,25 and short-term insurer Mutual & Federal fell 2,4% or 53 cents to R21,55.
“The market is flat overall. It is Friday so we might get a move lower later because of position squaring ahead of the weekend,” the dealer concluded. – I-Net Bridge