The JSE was weaker just before midday on Wednesday, dragged down by a firmer rand and weaker world markets. Platinum stocks continued to shine, however, as the white metal raced to fresh quarter-century highs.
By 11.55am, the all share and all share industrial indices shed 0,62% and 0,56% respectively. Financials fell 0,22% and the banks index was 0,2% softer.
The resources and gold mining indices retreated 0,92% and 0,53% respectively, while the platinum mining index jumped 1,98%.
The rand was bid at 6,73 per dollar from 6,79 when the JSE closed on Tuesday, while gold was quoted at $472,05 a troy ounce from $469,20/oz at the JSE’s last close.
“The market is slightly easier. The Dow was down and world markets, with the exception of Eastern markets, are weaker. Futures are down and we are just negative from that point of view,” a dealer said.
He added that the rand was firmer on the back of a retracement in the dollar, and this was also weighing on the JSE.
“The big story is Gold Fields. It was knocked down five rand in the US market on the news that Harmony is going to sell its 25-million shares. Harmony came out today saying the deal is not going through but Merrill Lynch said yesterday it is going through. It is a price structured deal so it won’t go through below a certain level,” the dealer commented.
He said that the conflicting stories from Merrill Lynch and Harmony had created confusion, resulting in volatility in Gold Fields’ shares.
Harmony acquired the shares in Gold Fields during its hostile bid for the company that was launched in October last year.
Gold Fields shares were last quoted 2,08% or R2 in the red at R94, but Harmony was 1,34% or R1,07 higher at R80,92.
AngloGold Ashanti dipped R1,32 to R282,16.
London-listed diversified resources group Anglo American lost 1.29% or R2,71 to R207,50 and BHP Billiton weakened 1,65% or R1,63 to R97,42. Anglo’s intraday high of R212,50 was its strongest since February 2002.
Petrochemicals group Sasol slipped 1,09% or R2,35 to R213,25.
The dealer said that Brent crude had fallen overnight and was over $13 off its highs. This could allay inflation fears, which were largely based on possible second round effects of high oil prices.
Platinum touched its highest level in over 25-years of $988/oz earlier in the day, boosted by Wednesday’s Johnson Matthey report which forecast platinum climbing to $1 030 in six months.
This saw Impala leap to a lifetime high of R919 and AngloPlat advance to a best level since June 2002 of R483.
Impala was last quoted at R910 — up 1,68% or R15 on the day.
AngloPlat was 2,36% or R11,05 in the black at R479,06.
Lonmin weakened 98 cents to R169,02. Before the opening, it reported earnings per share of 115 US cents for the year to September 2005, up 32% from 87 US cents in the previous comparative period.
Underlying earnings per share increased by 20% to 116,4 US cents compared with 96,9 US cents previously. Lonmin’s full year dividend remained unchanged at 72 US cents.
On the all share industrial index, MTN Group climbed 38 cents to R58,51. Telkom climbed 35 cents to R138,15.
Pulp and paper producer Sappi perked up 1,06% or 81 cents to R77,51 and media group Naspers gained 1,78% or R1,90 to R108,40.
Hospital group Netcare strengthened 1,46% or 10 cents to R6,95 after it reported a 34,4% rise in fully diluted headline earnings per share (HEPS) to 58,6 cents per share for the year ended September 30 2005 from 43,6 cents a year ago.
The group declared a final capital distribution of 15 cents per share, which together with the interim distribution of 10 cents, made a total distribution of 25 cents from 19 cents a year earlier.
Brand management Barloworld slumped 4,04% or R4,48 to R106,52. It earlier reported a 5% increase in headline earnings per share to 893,6 cents for the year ended September 30 from 853,2 cents a year ago. On a fully diluted basis HEPS were 873,6 cents from 833 cents previously.
The group’s dividend totaled 455 cents — up 20% from 380 cents a year ago.
The I-Net Bridge consensus forecast was for HEPS of 900 cents and a dividend of 420 cents per share.
London-listed IT group Dimension Data, which also released results before the opening, was four cents lower at R4,35.
Didata reported basic earnings per share of 1,3 US cents for the year to end of September after a loss of 2,8 US cents the previous year.
Adjusted earnings per share amounted to 1,4 US cents compared with 0,9 US cents previously.
Retailer Edcon dropped 3,94% or R1,25 to R30,45 after it reported a 28% rise in diluted headline earnings per share to 109 cents for the six months to end-September 2005 versus 85 cents in the year-earlier period.
The company declared an interim dividend of 62 cents per share, a 27% increase on the 49 cents declared at the halfway point in 2004, in line with its policy of maintaining a dividend cover of two times attributable earnings.
Swiss-listed luxury goods group Richemont surrendered 1,14% or 30 cents to R26,01 and London-listed brewer SABMiller slumped 2,52% or R3,09 to R119,71.
On the financial index, London-listed Old Mutual fell 12 cents to R16,63.
Sanlam, however, strengthened seven cents to R13,02.
FirstRand bounced 16 cents to R16,76 and RMB Holdings was up seven cents at R25,52.
Absa, however, slid 1,7% or R1,59 to R89,81, Nedbank gave up 1,14% or R1,04 to R92,06 and Standard Bank was down 35 cents at R71,90.
Short-term insurer Mutual & Federal tumbled 3,7% or one rand to R26, surrendering gains made on Tuesday. – I-Net Bridge