The JSE Securities Exchange (JSE) was weaker in noon trade on Tuesday, dragged down by a stronger rand. However, dealers said that some strength could possibly be seen later in the day after the market digested better-than-expected gross domestic product (GDP) data released on Tuesday morning.
At 12.05pm, the all-share and all-share industrial indices were off 0,16% and 0,15% respectively. Resources retreated 0,28% and the gold-mining index lost 0,13%. Financials were flat (+0,02%) and the banks index lost 0,14%. The platinum-mining index climbed 0,29% however.
The rand was bid at R6,46 per dollar from R6,47 when the JSE closed on Monday, while gold was quoted at $440,06 a troy ounce from $440,30/oz at the JSE’s last close.
The rand firmed on Monday afternoon on the back of the euro, which together with the GDP data continued to support the local unit on Tuesday.
A dealer said that the market’s weakness was mainly a currency play.
“The rand is better, which has put a bit of pressure on some of the resources stocks,” he explained.
He added, however, that the morning’s GDP data could have a positive effect on the market later in the day.
“I think we will find local industrials picking up a bit, particularly the heavyweights such as Bidvest, Barlows and Imperial,” he said. “There might be some disappointment because growth at these levels could reduce the chances of a rate cut and this might put pressure on some of the consumer stocks.
“But overall the fact that South Africa is moving towards growth rates that will help confidence and improve employment should offset this.”
South Africa’s real GDP at market prices on a quarter-on-quarter seasonally annualised and adjusted basis rose by 4,8% in the second quarter of 2005 from 3,5% in the first quarter, Statistics South Africa (Stats SA) said on Tuesday.
The economy was expected to have posted growth in GDP of 4,2% on a quarter-on-quarter seasonally adjusted annualised basis during the second quarter of 2005, gathering steam from the 3,5% quarter-on-quarter rate recorded during the first quarter of the year, according to a consensus of economists surveyed by I-Net Bridge.
On the resources index, Anglo American lost R1,10 to R164,60 and BHP Billiton weakened 55 cents to R97,65.
Gold Fields fell 40 cents to R72,80 and Harmony gave up 20 cents to R55,30.
AngloPlat was off R1,50 at R317,50.
Impala Platinum, however, climbed R4,35 to R634,50.
Petrochemicals group Sasol climbed 89 cents to R208,89.
While iron-ore miner Kumba was down 45 cents at R84,30, it earlier traded at a record high of R85.
Swiss-listed luxury goods group Richemont led industrials lower, retreating 1,6% or 40 cents to R24,60. It was also down in Zurich.
Mittal Steel slid 1,48% or 80 cents to R53,40.
Media group Naspers dropped 3,02% or R3,30 to R106.
Cellular network operator MTN Group eased 20 cents to R47,30.
Retailer Edcon retreated 1,17% or 40 cents to R33,80, Pick ‘n Pay slipped 1,82% or 50 cents to R27 and New Clicks was 2,34% or 20 cents lower at R8,35.
Transport and logistics group Imperial, however, rallied 2,8% or R3,23 to R118,50 and brand-management group Barloworld was 1,55% or R1,59 better at R104,50.
Services group Bidvest surged 3,23% or R2,76 to R88,25, having traded at a lifetime high of R88,50.
On Monday, it reported a 26,2% increase in headline earnings per share to 686,6 cents for the year ended June 30 from 554 cents a year ago. A final distribution of 172,2 cents was declared — an increase of 25,9% from a year ago, making a total distribution of 306 cents from 250,2 cents a year ago.
Aspen Pharmacare, which earlier traded at a best-to-date R30,60, was 5,72% or R1,65 in the black at R30,50 following its solid results released on Monday.
It reported a 40% increase in headline earnings per share to 144,7 cents for the year ended June, from 103,7 cents last year.
The group declared a capital distribution of 48 cents — which was 60% higher than the previous year’s distribution of 30 cents.
On the financial front, Nedbank was 1,71% or R1,50 in the red at R86,30 and Standard Bank surrendered 30 cents to R71,40.
Investment bank Investec Limited shed 85 cents to R212,15 and financial-services group Sage slumped 3,87% or six cents to R1,49.
London-listed real-estate company Liberty International lost 80 cents to R113,20.
Banking group FirstRand, however, firmed 10 cents to R16,35 and microlender Abil advanced 2,14% or 44 cents to R21.
Life assurer Liberty Group was 50 cents higher at R63,75. — I-Net Bridge