The JSE was weaker just before noon on Thursday as players took profits following the bourse’s rally over the prior two days, which took it to a record high. The weakness was in line with the trend on world markets.
By 11.57am, the all share index lost 0,32%. Financials and resources fell 0,52% and 0,55% respectively, while the banks index was 0,5% lower.
The gold mining index dropped 1,66%. The all share industrial index was flattish (+0,03%) and the platinum mining index inched a marginal 0,09% higher.
The rand was bid at 6,32 per dollar from 6,33 when the JSE closed on Wednesday, while gold was quoted at $444,86 a troy ounce from $445,15/oz at the JSE’s last close.
“The market is down at long last. The rally was overdone and there is definitely some profit taking coming in,” a dealer said.
He added that Asian markets had been weaker and both European markets and United States futures were down.
“I think markets were just overstrung and needed to take a breather,” he asserted.
On the JSE’s downside, global resources group BHP Billiton weakened 1,04% or 99 cents to R94,56 and Anglo American was off 84 cents at R167,15.
Gold Fields fell 2,04% or R1,50 to R72, Harmony was 1,63% or 83 cents lower at R50,11 and AngloGold Ashanti shed 1,3% or R3 to R227.
Mittal Steel was 40 cents softer at R51,55.
Swiss-listed luxury goods group Richemont gave up 22 cents to R25,26 and investment company Remgro retreated 1,09% or R1,20 to R108,80.
Retailer Shoprite slipped 1,72% or 30 cents to R17,15 and furniture group Steinhoff surrendered 1,37% or 25 cents to R18.
Insurance company Sanlam was 1,84% or 25 cents softer at R13,35.
Before he opening, Sanlam reported an 85% increase in headline earnings per share for the six months ended June 30 to 102,5 cents from 55,5 cents for the same period a year ago.
However, it said that buoyant equity markets had a significant impact on the strong headline earnings reported for the first six months of 2005, and cautioned that this trend may not continue during the second half.
Second half performance will also be impacted by the sale of the investment in Absa.
Liberty Group lost 50 cents to R66,30 and London-listed Old Mutual fell five cents to R16,45.
Nedbank was 89 cents in the red at R93,11 rand and Standard Bank slipped 45 cents to R71,60.
On the JSE’s upside, petrochemicals group Sasol climbed one rand to R220,20.
Iron ore miner Kumba jumped 2,07% or R1,70 to R83,70.
Food group Tiger Brands roared ahead 2,81% or R3,75 to R137 after earlier reaching a record high of R138,40.
Services group Bidvest was 80 cents better at R90,80 — a lifetime best.
Pulp and paper producer Sappi picked up 31 cents to R73,56.
Aspen Pharmacare advanced 3,9% or R1,21 to R32,20 after earlier trading at an all-time high of R32,53.
Cement producer PPC strengthened 1,22% or R3,42 to R283,50.
Retailer Woolies rose 10 cents to R12,19 and Edcon was 20 cents higher at R33,09.
Health and life insurer Discovery was 2,45% or 55 cents in the black at R23. – I-Net Bridge