he JSE was slightly weaker in noon trade on Tuesday, dragged down by heavyweight resources stocks. The losses came despite a weaker rand.
At 11.59am, the all share index was off 0,14%. Resources retreated 0,63% and the banks index was 0,09% in the red. On the upside, industrials climbed 0,24%, financials inched 0,06% higher and the gold and platinum mining indices gained 0,54% and 0,38% respectively.
The rand was bid at 6,46 per dollar from 6,41 when the JSE closed on Monday, while gold was quoted at $440,80 a troy ounce from $441,60/oz at the JSE’s last close.
“The JSE is down mainly on resources,” a dealer said.
He added that when it came to Sasol, the oil price was not that much lower than it was on Monday. Given the softer rand, the only reason for the counter’s weakness could be profit taking.
He added that the same applied to BHP Billiton. Both it and Sasol traded at record highs on Monday.
BHP Billiton and Anglo American were down on the FTSE and this was coming through locally as well, the dealer commented.
He expressed surprise at the strength in some of the gold shares.
“Gold is down, but some of the gold shares are flying. The rand has weakened, but not enough to justify this. There seems to be a rush on some of these stocks.”
There could be a cyclical switch from the likes of Sasol, Billiton and Anglo into some of the gold stocks and possibly Standard Bank as well ahead of its results on Wednesday, the dealer concluded.
On the resources index, Anglo was off R1,50 at R168,85 and BHP Billiton was 90 cents softer at R99,10.
Sasol slipped 1,27% or R2,80 to R217,70.
AngloPlat weakened R2,50 to R331, but Impala picked up 1,1% or seven rand to R646. Impala earlier traded at R651– its highest since May 2002.
Gold Fields gained 63 cents to R77 and AngloGold Ashanti added R1,63 to R235.
Iron ore miner Kumba climbed 50 cents to R81, while Mittal Steel was 31 cents stronger at R55,20.
However, it was Swiss-listed luxury goods group Richemont which led the market’s upside, rallying 1,14% or 28 cents to R24,88. Its intraday high of R24,99 was its strongest since June 2002.
London-listed brewer SABMiller was up just two cents at R117, but it earlier traded at a best ever R117,90.
Cellular network operator MTN rose 25 cents to R49,30 and media group Naspers picked up 75 cents to R108.
London-listed IT group Dimension Data soared 5,2% or 22 cents to R4,45.
Industrials to decline included retailer Foschini, which slumped 2,2% or 99 cents to R44. Pick ‘n Pay surrendered 1,28% or 35 cents to R27 and JD Group gave up 1,05% or 80 cents to R75,20.
Food group Tiger Brands fell R1,05 to R130 and hospital group Netcare weakened five cents to R6,40.
London-listed financial services group Old Mutual firmed 13 cents to R15,78 and real estate company Liberty Group climbed 35 cents to R113,60.
Standard Bank inched up eight cents to R73,05.
FirstRand, however, fell eight cents to R16,51 and Nedbank dropped 49 cents to R88.
Microlender Abil was 1,44% or 32 cents lower at R21,90. – I-Net Bridge