The JSE was down for the second straight day on Wednesday as the profit-taking that started on Tuesday, following the bourse’s rally to several successive record highs, continued. The local bourse’s losses were in line with the trend on world
markets.
By 12.05pm, the all share index slipped 1,36%. Industrials lost 0,95% and the financial and banks indices fell 1,77% and 2,73% respectively.
Resources retreated 1,54% and the platinum mining index weakened 1,42%, but the gold mining index gained 0,72%.
The rand was bid at 6,45 per dollar from 6,42 when the JSE closed on Tuesday, while gold was quoted at $444,40 a troy ounce from $441,60/oz at the JSE’s last close.
“The market is taking another rest day. Everyone seems to be getting out of stock at the moment. There is definitely some profit taking coming through — people are thinking that the market has gone up in a straight line for months and have decided to climb out,” a dealer said.
He added that the JSE was following the trend on world markets, with players using their weakness as justification to take profits.
He said that gold shares were the only real bright spot on the back of the higher bullion price. He added that there could also be switching into gold stocks as these had lagged the rest of the market somewhat.
Standard Bank was under pressure on the downside, slumping 3,45% or R2,51 to R70,24.
Before the opening, it reported a 31% increase in headline earnings per share to 327,4 cents for the six months ended June.
However, on a normalised basis, headline earnings per share were 22% higher.
The group said that the earnings reflected the consequences of applying a number of accounting conventions which distorted both the legal and economic substance.
“In order to correct these distortions, this effect has been adjusted in arriving at normalised earnings. On this basis normalised headline earnings per share growth was 22% and return on equity a more realistic 23,7% (as opposed to 26,7%),” the bank explained.
The group declared an interim dividend of 122 cents compared with 50,5 cents for the previous comparable half-year.
The dealer said that while Standard Bank’s results were in line with expectations, it had said that growth in its normalised headline earnings per share for the full year is unlikely to be as high as in the first half. Its costs had also been a bit on the high side.
FirstRand slipped 2,43% or 40 cents to R16,08, Nedbank was down 1,95% or R1,69 at R85,10 and Absa was 1,24% or R1,15 in the red at R91,60.
Liberty Group was 3,2% or R2,13 lower at R64,50 and Sanlam weakened 1,12% or 15 cents to R13,20.
Coronation plunged 6,06% or 30 cents to R4,65.
On the resources index, Anglo American slipped 1,92% or R3,20 to R163,60 and BHP Billiton was down 1,9% or R1,85 at R95,65.
Petrochemicals group Sasol slid 1,67% or R3,61 to R212,50.
AngloPlat was off 1,82% or R5,99 at R324 and Impala surrendered 1,82% or R5,99 to R628,98.
Swiss-listed luxury goods group Richemont retreated 1,16% or 29 cents to R24,61 and brand management group Barloworld gave up 2,08% or R2,10 at R98,90.
Media group Naspers tumbled 2,4% or R2,50 to R101,50.
Retailer Shoprite was down 2,45% or 40 cents at R15,90 and JD Group jumped 3,02% or R2,27 to R73.
On the market’s upside, AngloGold Ashanti advanced 1,91% or R4,49 to R239,50. Gold Fields gained 22 cents to R76,43 and Harmony was 16 cents higher at R57,56.
Chemical and explosives group AECI firmed 40 cents to R49.
Construction group Aveng added 10 cents to R13 and Group Five was up 1,19% or 20 cents at R17. – I-Net Bridge