The JSE was a mixed bag in noon trade on Wednesday, with London-listed brewer SABMiller leading the downside as the market reacted to its trading statement issued before the opening. On the upside, resources benefited from higher commodity prices and a slightly weaker rand.
At 12.06pm, the all-share index was up a neither-here-nor-there 0,02%. Resources rose 0,62%, the gold-mining index gained 0,73% and the platinum-mining index jumped 2,91%. Industrials lost 0,48%, however, while the financial and banks indices fell 0,19% and 0,25% respectively.
The rand was bid at R6,53 per dollar from R6,50 when the JSE closed on Tuesday, while gold was quoted at $478,80 a troy ounce from $476,10/oz at the JSE’s last close.
A dealer said that activity on the JSE was to an extent a rand play.
The weaker currency was impacting negatively on banking stocks.
However, together with higher commodity prices, it was benefiting resources.
“SABMiller is down on its trading statement. Even though it was not that bad, the market is worried about SABMiller’s United States market share and it stated categorically that this is coming down,” he commented.
SABMiller shares were 2,82% or R3,45 lower at R231,50.
It said before the opening that that the group’s financial performance in the six-month period to September 30 was “in line with management’s expectations”, and organic growth of about 5% in lager volumes was recorded.
SABMiller said that in North America, Miller’s US domestic sales to retailers (STRs) were down by 0,3% against prior year in a trading environment that has become increasingly price-competitive and subject to higher input costs, both of which have affected profitability.
STR growth in the Miller Lite franchise was offset by a net decline in the STRs of other brands.
Global resources group BHP Billiton was another decliner, easing 29 cents to R96,40 despite being up in the United Kingdom. The dealer explained that this was because BHP Billiton shares were pushed down eight pence in the last hour of trade in the UK.
Commented a second dealer: “I think the market is struggling to find a level. There is no definitive trend at moment and it is being tossed around on a daily basis.”
He said that weaker European and Asian markets were also weighing on the JSE.
“There was a bit of disappointment at Wall Street’s performance last night — people were expecting it to be up quite strongly. Everyone is expecting good results to come through and lift Wall Street, but this is not happening. Bad news is holding it back.”
Other shares to lose ground included Telkom, which slid 1,61% or R1,95 to R119,05. MTN Group surrendered 25 cents to R47,40.
Pulp and paper producer Sappi was 1,01% or 68 cents softer at R119 and Mittal Steel shed 1,52% or 79 cents to R51,10.
Nedbank weakened 1,28% or R1,15 to R88,50 and Standard Bank dipped 16 cents to R68,45.
FirstRand, however, inched up four cents to R16,20 and Absa added 30 cents to R88,70.
London-listed resources group Anglo American climbed 70 cents to R189,70.
Petrochemicals group Sasol — which again dominated trade — strengthened 1,09% or R2,50 to R231,50.
Gold miner Harmony surged 2,82% or R2,05 to R74,70, Gold Fields gained 40 cents to R94,90 and AngloGold Ashanti was up 95 cents at R286,95 after trading at a one-and-a-half-year high of R294.
AngloPlat advanced 3,34% or R11,75 to R363,75 and Impala leaped 2,6% or R18,05 to R711,05.
On Wednesday morning, spot gold moved above $480 a troy ounce for the first time in almost 18 years on fund-buying.
Meanwhile, platinum touched a 25-and-a-half-year high of $944,50. Its strength was also due to fund-buying.
On the industrial index, Swiss-listed luxury goods group Richemont was 10 cents better at R25,20.
Gases and welding products group Afrox was up 3,73% or 90 cents at R25.
Transport and logistics group Imperial rallied 1,03% or R1,29 to R126,50 and construction group Murray & Roberts roared ahead 2,38% or 45 cents to R19,35. — I-Net Bridge