The JSE Securities Exchange was slightly weaker just after noon on Thursday, with a stronger rand against sterling weighing on London-listed resources heavyweights Anglo American and BHP Billiton. Gold stocks glistered, however, despite getting little help from the gold price.
By 12.13pm, the all share and all share industrial indices eased 0,13% and 0,2% respectively. Resources retreated 0,15% and the platinum mining index lost 0,92%.
While financials were flat, the banks index was 0,25% in the red. The gold mining index jumped 2,06%.
The rand was bid at 6,65 per dollar from 6,67 when the JSE closed on Wednesday, while gold was quoted at $436,65 a troy ounce from $437,15/oz at the JSE’s last close.
A dealer said that while a bit of negativity was coming into the market on the back of the weaker close on the Dow overnight and the softer rand, volumes were too thin for the market to have real drivers.
“Volumes have been desperately thin — just on one billion rand has traded. I don’t know if it is a precursor to the Independence Day celebration in the States on Monday,” he commented.
He said that on the downside, Anglo and Billiton — which were up in London —
were merely weaker on the strength of the rand against sterling.
“That gap will never be allowed to open much. There are too many guys playing that arb,” he commented.
Anglo was off 70 cents at R156,70 and BHP Billiton weakened 55 cents to R85,85.
Other decliners included Impala Platinum, which slid 1,88% or R1,40 to R593,50.
Swiss-listed luxury gods group Richemont surrendered 20 cents to R22,30, London-listed brewer SABMiller shed 38 cents to R103 and pulp and paper producer Sappi was 34 cents softer at R73,65.
Food group Tiger Brands fell 1,86% or R2,15 to R113,25, although it earlier traded at a lifetime high of R116.
Furniture group Steinhoff slipped 1,95% or 30 cents to R15,10 and retailer Edcon was 1,09% or R3,19 in the red at R288,26.
Standard Bank was 30 cents lower at R64,80, Nedbank weakened 30 cents to R74,70 and Absa was down 30 cents at R82,30.
On the JSE’s upside, gold miner Gold Fields leaped 3,89% or R2,90 to R77,50 and Harmony was 2,38% or 1,35 rand higher at R58.
AngloGold Ashanti added one rand to R243,99.
“In dollar terms, Gold Fields is up 20 cents from its US closing price. I don’t think these levels are going to be sustained when the States comes in,” the dealer commented.
AngloPlat advanced R1,20 to R300,25. Merrill Lynch on Thursday raised its earnings forecast for the stock by 109% to R16,82 per share from a previous estimate of R8,04.
Kumba climbed 1,35% or 77 cents to R57,76.
Sugar producer Illovo rallied 2,22% or 19 cents to R8,75 and Tongaat gained 1,01% or 60 cents to R59,95.
Retailer Pick ‘n Pay perked up 1,2% or 30 cents to R25,30.
Investment bank Investec was up 1,42% or R2,90 at R207.
The dealer concluded that although it was quarter end, he was not expecting too much pushing to come into the market in the afternoon.
“There may be a bit of pushing, but I can’t see too much buying on the last day. I think there has been buying over the past week, but guys can’t do too much manoeuvring on the last day. If they are accused of market manipulation, the penalties are too high.” – I-Net Bridge