The JSE was weaker in noon trade on Friday as players took profits ahead of the weekend.
The market roared to a record high on Thursday after news that United Kingdom-based Vodafone planned to up its stake in Vodacom to 50% by acquiring VenFin’s 15% stake triggered frenzied buying. Although the all-share index briefly popped above the 17 000 level for the first-ever time at Friday’s opening, it was unable to hold on to its gains.
By 11.57am, the all-share and all-share industrial indices shed 0,68% and 0,98% respectively. Financials fell 0,93% and the banks index was 0,77% in the red. Resources retreated 0,22% and the gold-mining index gave up 0,45%, but the platinum-mining index inched 0,09% higher.
The rand was bid at R6,64 per dollar from R6,60 when the JSE closed on Thursday, while gold was quoted at $461,15 a troy ounce from $460,60/oz at the JSE’s last close.
“The market is coming down on profit-taking. We’ve had a huge run up and guys are just coming in and taking money off the table,” a dealer said.
He added that in addition to profit-takers, some players were looking to go short at the market’s high levels. The rally on the JSE had been overdone, he asserted.
While Thursday was by far the biggest gain, the bourse has closed in the black every day this week.
Telecoms stocks were once again dominating trade. MTN Group slid 1,7% or one rand to R57,80 and Telkom lost 1,05% or R1,50 to R141.
VenFin eased 20 cents to R46,80.
VenFin rocketed almost 30% on Thursday on the news that Vodafone is offering to acquire the entire issued B ordinary share capital of VenFin for a consideration of R47,25 per B ordinary share.
Retailers were also on the back foot, with Pick ‘n Pay dropping 2,28% or 65 cents to R27,80 and Shoprite slumping 3,52% or 61 cents to R16,70.
Steinhoff shed 3,42% or 65 cents to R18,35.
Transport and logistics group Imperial lost 1,22% or R1,60 to R129,40 and services group Bidvest was down 1,31% or R1,20 at R90,50.
Mittal Steel was 2,99% or R1,60 softer at R51,90 and Kumba weakened 2,48% or R2,50 to R98,50.
Global resources group BHP Billiton was 60 cents in the red at R99,40.
Gold Fields fell 1,07% or 96 cents to R88,99 and Harmony was 50 cents lower at R69,50.
Life assurer Sanlam was 2,28% or 29 cents in the red at R12,41, while Liberty Group was 2,57% or R1,77 in the red at R67.
Banking group RMB Holdings plunged 3,08% or 78 cents to R24,58.
On the market’s upside, AngloGold Ashanti added 74 cents to R266,69.
Impala Platinum was R1,01 in the black at R776 after earlier trading at a record high of R780.
Banking group Absa added 58 cents to R90,78. — I-Net Bridge