The JSE was weaker just before midday on Tuesday due to profit-taking following Monday’s rally to a record high. As was the case on Monday, futures activity ahead of Thursday’s close-out dominated trade.
By 11.54am, the all-share and all-share industrial indices shed 0,67% and 0,61% respectively. Financials fell 0,46% and the banks index was 0,6% softer. Resources retreated 0,89% and the platinum-mining index lost 1,49%, but the gold-mining index ticked 0,24% higher.
The rand was bid at R6,37 per dollar from R6,38 when the JSE closed on Monday, while gold was quoted at $448,60 a troy ounce from $448,80/oz at the JSE’s last close.
“There must be a bit of profit-taking coming through. The rand is steady and gold has maintained its levels,” a dealer said.
He added that the huge moves on the upside on Monday had been mainly futures-related and Tuesday’s selling was futures-related as well.
“As we get closer to close-out, margins are becoming narrower, so any big move creates the opportunity to close out or open new positions,” the dealer explained.
Futures activity is likely to continue to dominate trade until the close-out on Thursday, he concluded.
Petrochemicals group Sasol, which had a strong run on Monday after it released good results, led the JSE’s downside. It was 1,54% or R3,50 in the red at R224,50.
London-listed diversified resources group Anglo American was R1,29 weaker at R165,71 and BHP Billiton was down 75 cents at R95,50.
Impala Platinum, which surged to a record high on Monday, tumbled 2,33% or R17,04 to R715,01.
Pulp and paper producer Sappi slumped 3,44% or R2,60 to R72,90 and Mittal Steel slipped 1% or 51 cents to R50,50.
Swiss-listed luxury-goods group Richemont retreated 21 cents to R25,20 and brand-management group Barloworld surrendered 1,66% or R1,84 to R109,16.
London-listed brewer SABMiller eased 60 cents to R118,50.
Cellular network operator MTN Group gave up 1,88% or 90 cents to R46,90 and Telkom lost 1,18% or R1,50 to R125,50.
Retailer Edcon was off 1,66% or 54 cents at R32,01 and furniture group Steinhoff fell 1,06% or 19 cents to R17,81.
London-listed financial services group Old Mutual was 11 cents lower at R16,10.
Standard Bank dropped 45 cents to R69,90 and Absa slid 1,97% or R1,90 to R94,50.
Health and life insurer Discovery was down 2,62% or 59 cents at R21,91. It was trading at R22 before it reported a 28% increase in fully diluted headline earnings per share from 77,4 cents to 99,2 cents for the year ended June.
On the market’s upside, Nedbank was 61 cents better at R91,76.
Construction and engineering group Murray & Roberts rose 1,11% or 20 cents to R18,20.
Retailer Massmart strengthened 1,01% or 52 cents to R52,02 and Woolies firmed 10 cents to a best-to-date R12,40.
Pick ‘n Pay, which traded at a record high of R28,90, was 1,25% or 35 cents in the black at R28,35.
Ceramic Industries rallied 4,17% or five rand to an all-time high of R125 after the tile and sanitary-ware manufacturer reported a 28% increase in headline earnings per share to 964,5 cents for the year ended July 31, from 754 cents a year ago. A final dividend of 150 cents was declared, which together with the interim dividend of 70 cents, made a total dividend of 220 cents — a 63% increase over the previous year.
A special dividend of 150 cents was also declared, based on strong cash reserves, the company said.
Gold miner Harmony was 31 cents higher at R53,86 and AngloGold Ashanti added 75 cents to R246,75. — I-Net Bridge