The JSE Securities Exchange (JSE) was weaker just before midday on Monday as concerns about the effect of the record high oil price on global growth knocked world markets. Volumes were light due to the bank holiday in the United Kingdom.
By 11.53am, the all-share and all-share industrial indices shed 0,51% and 0,44% respectively. Resources retreated 0,55%. Financials fell 0,58% and the banks index eased 0,19%. The platinum-mining index jumped 1,65%, however, while the gold-mining index inched 0,13% higher.
The rand was bid at R6,44 per dollar, little changed from when the JSE closed on Friday, while gold was quoted at $449,90 a troy ounce, also steady from the JSE’s last close.
“It is very quiet,” a dealer said. “London is closed, so we are not getting guidance from there. European markets have been dragged down by worries over the oil price.
“I think it is an excuse. People were waiting for something to trigger a sell-off after some nice rises. We’ll probably go into reverse for a few weeks and then pick up again.”
Oil prices surged above $70 a barrel on Monday on fears that Hurricane Katrina would threaten oil production in the Gulf of Mexico region.
The high oil price benefited petrochemicals group Sasol, which was 1,02% or R2,11 stronger at R208.
London-listed diversified resources group Anglo American, however, was 1,73% or R2,75 weaker at R156,50.
BHP Billiton lost 1,18% or R1,11 to R92,90.
Gold-miner Harmony climbed 1,13% or 54 cents to R48,30 and AngloGold Ashanti added 99 cents to R228.
Junior miner Western Areas, however, dived 7,01% or R1,75 to R23,20.
When it released its results before the opening, Western Areas announced that the ore reserves at its South Deep joint venture could be slashed by 18%.
Western Areas reported that it saw its headline loss per share decrease to 105,3 cents for the quarter ended June, from a loss of 160,2 cents in the previous quarter.
Iron-ore miner Kumba tumbled 2,09% or R1,70 to R79,50.
Impala Platinum, by contrast, leaped 2,23% or R13,90 to R637 and AngloPlat advanced 1,07% or R3,20 to R302.
On the all-share industrial index, Mittal Steel was 1,04% or 50 cents softer at R47,60.
Hiveld plunged 26,92% or R18,36 to R49,84. However, this was no surprise as it went ex-dividend of R17 per share (R6,50 special dividend and R10,50 interim dividend).
Pulp and paper producer Sappi surrendered 1,09% or 75 cents to R67,75.
Swiss-listed luxury goods group Richemont was 19 cents lower at R24,08.
Brand-management group Barloworld surrendered 1,67% or R1,69 to R99,80 and services group Bidvest slipped 1,14% or one rand to R86,75.
Cement producer PPC weakened 1,17% or R2,99 to R253 and construction and engineering group Aveng gave up 2,27% or 30 cents to R12,90.
While Imperial was off 55 cents at R120,75, it earlier traded at a best-to-date R121,50.
Industrials to advance included retailer Shoprite, which rallied 3% or 49 cents to R16,80.
Massmart was 1,02% or 50 cents stronger at R49,50.
Food group Tiger Brands firmed one rand to R129.
AltX-listed black economic empowerment company Enaleni Pharmaceuticals soared 6,52% or 15 cents to R2,45 after it announced it has been awarded tablet product tenders worth R54-million from the South African government.
On the financial front, London-listed financial services group Old Mutual fell 1,58% or 25 cents to R15,60.
Investment bank Investec plc lost 1,54% or R3,31 to R211 and Investec Limited was 1,22% or R2,50 lower at R202,50.
Standard Bank eased 40 cents to R69,50 and Nedbank was off 50 cents at R86,50, but Absa added 48 cents to R95,60.
Investment company Remgro was 1,93% or R2,10 in the red at R106,50. — I-Net Bridge