The JSE Securities Exchange was weaker in noon trade on Wednesday on the back of selling ahead of the afternoon’s futures closeout. The losses came despite a weakening in the rand from levels seen earlier in the day.
At 12.1pm, the all share index was down 0,31%. Resources retreated 0,3%, with the gold and platinum mining indices losing 1,34 and 0,94% respectively. Industrials eased 0,13%, financials fell 0,56% and the banks index was 0,7% in the red.
After trading at around R6,85 earlier in the morning, the rand was quoted at 6,88 per dollar from 6,89 when the JSE closed on Tuesday, while gold was quoted at US$426,65 a troy ounce from $426,85/oz at the JSE’s last close.
A dealer said that it had been a fairly rough morning on the JSE.
“The currency has weakened from 6,85-6,86 to 6,88-6,89, but Anglo and all the gold stocks are weakening,” he said.
“People are expecting a bit of a negative impact from this afternoon’s futures closeout,” he said, but added that the closeout was expected to be a small one.
“The open interest is 78 000 and most of that is in out of the money deltas. Most of the guys who have arbs have either rolled over or closed out already — they’ve had ample opportunity to do so.”
He cautioned that one could never be sure what would happen during closeout.
“In the past, we’ve expected the market to fall and it’s rocketed,” he commented.
On the gold mining index, DRDGold dived 5,33% or R0,40 to R7,10 on the news that a class action lawsuit had been launched against the company in the United States.
Of the heavyweights, AngloGold Ashanti tumbled 2,01% or R4,80 to R234, Harmony weakened 1,39% or R0,75 to R53,25 and Gold Fields was down R0,38 at R73,28.
London-listed diversified resources group Anglo American lost 1,27% or R2,10 to R163,20. It was also down in the United Kingdom.
AngloPlat surrendered 1% or R2,90 rand to R287 rand and Impala was off R5,50 at R582 rand.
Petrochemicals group Sasol dipped R1,50 rand to R183,50.
BHP Billiton, however, jumped 1,78% or R1,50 rand to R85,70 rand and Kumba climbed 1,68% or one rand to R60,50.
On the industrial index, Swiss-listed luxury goods group Richemont surrendered eight cents to R23,01.
Food group Tiger Brands fell 1,93% or R2,10 R106,50.
Media group Naspers slipped 1,49% or R1,25 to R82,85 and diversified industrial Imperial slumped 2,32% or R2,35 rand to R99.
Cellular network operator MTN Group, however, gained 1,24% or 54 cents to R44,10 and Mittal Steel strengthened 1,24% or 54 cents to R47,35.
Retailer Truworths rallied 1,74% or 31 cents to R18,10.
On the financial front, London-listed Old Mutual fell 11 cents to R14,30 and Sanlam was 11 cents softer at R11,42.
Standard Bank was 1,4% or 90 cents in the red at R63,40.
Investment trust Remgro retreated 65 cents to R107.
Financial and risk services group Alexander Forbes, however, advanced 1,49% or 19 cents to R12,95. — I-Net Bridge