The JSE was a mixed bag just before midday on Monday, with the overall index just slightly lower due to profit-taking and a stronger rand. Good demand for gold and telecoms stocks ensured that the JSE’s losses were limited, however.
By 11.56am, the all-share index was down a marginal 0,07%. Financials and resources fell 0,19% and 0,37% respectively and the platinum-mining index weakened 0,33%. The banks index was flat. Industrials climbed 0,33%, however, while the gold-mining index jumped 2,08%.
The rand was bid at R6,62 per dollar from R6,68 when the JSE closed on Friday, while gold was quoted at $488,75 a troy ounce from $485,70/oz at the JSE’s last close. Gold earlier traded at its highest level in almost 18 years of $490,15/oz.
“The market is very mixed,” a dealer said. “Guys started chasing up prices again this morning. The Dow was up, the Nikkei was up and the Hang Seng was up, although the FTSE is slightly down. But with the stronger rand, I was expecting the market to ease back a bit.”
He continued that very strong demand was coming in for gold stocks and telcos.
“The gold price is looking spunky. Gold stocks were also pushed up nicely in the [United] States on Friday, so there is demand coming in locally even with the strong rand,” the dealer commented.
However, there had been some profit-taking in some of the stocks that had a strong run last week, such as platinum stocks.
The rand was also weighing on stocks such as Anglo American and BHP Billiton, which were up in London but down locally.
Fairly thin volumes were also contributing to the JSE’s volatility, the dealer concluded.
On the market’s upside, cellular network operator MTN Group rallied to a lifetime high of R61. It was last quoted 3,48% or R2,01 in the black at R59,80.
Telkom gained 1,52% or R21,50 to R144.
Brand-management group Barloworld bounced 1,8% or R1,95 to R110, having come under pressure following the release of its results last week.
Cement producer PPC was 1,87% or six rand stronger at R327 after earlier reaching a record high of R334.
Construction group Murray & Roberts rose 1,58% or 30 cents to R19,30.
Food group Tiger Brands roared ahead 1,79% or R2,50 to R142,50.
Gold miner Gold Fields gathered 2,31% or R2,35 to R104,25 after earlier trading at a two-year high of R104,85. Harmony was up 2,6% or R2,18 at R86,16 and AngloGold Ashanti added R1,75 to R291,50.
Standard Bank climbed 24 cents to R70,69 and Nedbank notched up 50 cents to R92,50.
Absa advanced 60 cents to R89,90. Absa shares traded as high as R90,30 after the group reported headline earnings per share of 454,8 cents, a 22% increase on the previous comparable half-year’s earnings of 371,2 cents.
Diluted headline earnings per share came in at 434,9 cents — a 19,6% improvement on the previous period’s 363,6 cents.
The group declared an interim dividend per share of 160 cents, compared with 95 cents a share previously.
On the JSE’s downside, Anglo eased R1,40 to R210,50 and BHP Billiton lost 76 cents to R99,10.
Petrochemicals group Sasol slipped 1,19% or R2,74 to R228.
AngloPlat was off R1,60 at R489,90 and Impala gave up five rand to R886.
Swiss-listed luxury-goods group Richemont retreated 20 cents to R27,24 and London-listed brewer SABMiller surrendered 1,13% or R1,34 to R117,65.
Entertainment and gaming group Johnnic dropped 4% or 50 cents to R12.
On Friday, Johnnic recommended that shareholders reject an offer by Hosken Consolidated Investments of a cash consideration of R10,70 per Johnnic share with a share alternative of one HCI share per 2,57 Johnnic shares held.
Pulp and paper producer Sappi was 70 cents softer at R74,70.
While London-listed financial-services group Old Mutual was 13 cents in the red at R16,98, it earlier traded at a best level since June 2002 of R17,20. — I-Net Bridge