The JSE Securities Exchange was in negative territory in noon trade on Tuesday, with lower metals prices putting resources stocks under pressure. The losses came despite a softer rand.
By 11.58am, the all share index shed 0,24%. Resources retreated 0,45%, with the gold and platinum mining indices losing 1,31% and 1,16% respectively.
Industrials dipped 0,07%, financials fell 0,17% and the banks index eased 0,08%.
The rand was bid at 6,78 per dollar from 6,71 when the JSE closed on Monday, while gold was quoted at $434,55 a troy ounce from $439,35/oz at the JSE’s last close.
“People are starting to recognise that resources are too high and we are seeing some profit taking coming through from Europe,” a dealer said.
“The rand has weakened, but people are looking at what commodity prices are doing — gold, platinum and silver are down and even copper is off its highs.
People feel that the steel price is too high and is going to come down.”
He said that in addition to profit taking, players were taking short positions in resources stocks.
“Against lower metals prices, Brent is flying. Coupled with the weakening rand, it is not good for inflation and people are saying there won’t be any more rate cuts.
“There is therefore negativity coming through to the market and people are starting to take profits,” the dealer commented.
On the JSE’s downside, Anglo American weakened 95 cents to R163,55.
AngloGold Ashanti shed 2,04% or R4,80 to R231 and Harmony lost 1,59% or 88 cents to R54,60. Gold Fields gave up 49 cents to R72,30.
AngloPlat was 1,36% or R3,90 lower at R283,10 and Impala was off 1,19% or seven rand at R581.
Mittal Steel tumbled 2,84% or R1,30 to R44,40 and Kumba surrendered 39 cents to R62.
Brand management group Barloworld weakened 1,45% or R1,34 to R91,35 and media group Naspers slipped 1,12% or 95 cents to R83,55.
After a strong showing on Monday, retailer Pick ‘n Pay retreated 1,96% or 50 cents to R25,01.
Investment trust Remgro dropped 1,2% or R1,30 to R107,20.
On the market’s upside, BHP Billiton touched a lifetime high of R89,80 in early trade, but was last quoted just five cents higher at R89,15.
Swiss-listed luxury goods group Richemont gained 17 cents to R23,10 and London-listed brewer SABMiller strengthened 82 cents to R105,70.
Pulp and paper producer Sappi firmed 60 cents to R73,60 and retailer Edcon climbed R2,25 to R293,50.
Investment bank Investec perked up R1,05 to trade at R220,60, while health and life insurer Discovery was 1,63% or 40 cents in the black at R24,90. – I-Net Bridge