The JSE was mixed, but nevertheless marginally higher, at midday on Wednesday after reaching another record high earlier in the morning. Dealers said that the rand was playing a key role, weighing on gold and platinum stocks, but benefiting banks.
By 11.56am, the all share index was up 0,12% at 14 528,49 after trading at a
lifetime high of 14 572,28. Resources rose 0,28% and the banks index was 0,62% better.
The financial index inched up 0,06% and the all share industrial index was flat. The gold and platinum mining indices lost 1% and 1,07% respectively.
The rand was bid at 6,55 per dollar from 6,54 when the JSE closed on Tuesday, while gold was quoted at $425,60 a troy ounce from $426,60/oz at the JSE’s last close. The rand has rallied strongly over the past couple of days on the back of offshore dollar sales and a stronger euro, reaching its best levels since late May.
“The rand has been rampant. It has been down to 6,52 and up to 6,56,” a dealer said.
“The market is looking marginally better. Gold and platinum stocks have been under quite a bit of pressure again. Everyone is taking cognisance of the wage negotiations that are currently under way and the rand is having an impact on these stocks as well.”
He said that South African gold shares were starting to look cheap when compared to their foreign counterparts.
Gold Fields tumbled 2,37% or R1,50 in morning trade to R76,45, Harmony was off 30 cents at R56,95 and AngloGold Ashanti shed R1,19 to R241. Junior miner DRDGOLD dropped 4,41% or 30 cents to R6,50.
AngloPlat slipped 1,96% or R3,01 to R300,99 and Impala was off R2 at R598.
The National Union of Mineworkers said on Wednesday that it was confident of reaching a wage settlement with AngloPlat.
The NUM has cut its wage demand from 15% to 8% while AngloPlat had increased its initial offer of 2,5% to the level of CPIX inflation, currently running at around 4%.
The dealer said that there was concern in the market as the NUM’s demands remained too high.
“Banks are all looking quite pretty and people think the rand is impacting quite well,” he commented. He noted that Absa was up 30 cents at R83,30 even though the Barclays’ purchase of a majority stake was “done and dusted” at R82,50.
Standard Bank was 1,21% or 80 cents stronger at R66,80.
FirstRand was five cents since firmer at R14,95 after earlier trading at a record high of R15,47. Its major shareholder RMB Holdings rose 15 cents to R23,60. Its intraday high of R24 was its strongest since 1998. FirstRand and RMB rallied strongly on Tuesday on a media report that FirstRand could be the possible target of a takeover by Citigroup.
Retailer Edcon featured on the all share industrial index, rallying 2,78% or R8,25 to R305,25 following its trading statement released before the opening, in which it said that that total first quarter sales rose by 25% when compared with the same period last year. It added that shareowners should expect another meaningful rise in earnings in 2006, above that of the sales growth.
Other advancers on Wednesday included petrochemicals group Sasol, which surged to a record high of R202 and was last quoted 2,18% or R4,30 in the black at R201,50.
Anglo American added 79 cents to R154,50 after gaining ground in London.
Iron ore miner Kumba climbed 1,15% or 70 cents to R61,50.
Swiss-listed luxury goods group Richemont gained 10 cents to R22,50.
Retailer Foschini firmed 1,25% or 50 cents to R40,60 and IT group Datatec soared 5,06% or 64 cents to R13,30.
On the market’s downside, pulp and paper producer Sappi was 1,08% or 75 cents softer at R68,60.
Brand management group Barloworld was 1,02% or one rand weaker at R97 and services group Bidvest surrendered 1,08% or 75 cents to R78,40.
London-listed brewer SABMiller lost 70 cents to R101,79, while IT group Dimension Data slid 2,2% or nine cents to R4,01.
Financial services group Old Mutual fell 1,01% or 15 cents to R14,72. – I-Net Bridge