The JSE was slightly weaker just before noon on Tuesday as a stronger rand and continued profit taking offset the positive effect of higher commodity prices.
By 11.53am, the all share and all share industrial indices shed 0,14% and 0,17% respectively. Financials fell 0,43% and the banks index was 0,72% in the red. The platinum mining index dropped 1,82%. The gold mining index jumped 1,35%, however, contributing to the resources index’s 0,06% gain.
The rand was bid at 6,61 per dollar from 6,62 when the JSE closed on Monday, while gold was quoted at $492,65 a troy ounce from $489,10/oz at the JSE’s last close.
Gold earlier touched a highest level since December 1987 of $495.63/oz on fund buying.
“The stronger rand is definitely having an effect on the market,” a dealer said. “It is largely a commodity day, but the rand is putting a dampener on things.”
He added that the futures market was also down and this could be the catalyst for some general profit taking coming through to the spot market.
The dealer said that petrochemicals group Sasol was again dominating trade turnover-wise, making up 15% of the market.
It was being spurred by a higher Brent price and rumours that it could be a takeover target, which had been doing the rounds for some time.
Sasol shares were R2,28 stronger at R231,75.
Gold stocks were up on the back of a higher gold price, while cellular network operator MTN Group was also a big contributor to the market’s upside.
MTN shares leaped 1,91% or R1,15 to R61,45, having traded at a lifetime high of R61,70.
MTN announced after the close on Monday that as a 49% shareholder in Irancell, it would participate in Iran’s second mobile operator.
However, the dealer said that the Iran story was not new and that he did not believe it was behind the share’s strength.
“With Vodafone buying VenFin’s stake in Vodacom, MTN and Telkom are the only options in the sector. People are seeking value and believe that out of the two, MTN is the cheaper option,” the dealer commented.
Telkom shares were down 1,26% or R1,79 at R140,70, while VenFin was unchanged at R46,12.
On the gold mining index, Gold Fields was up 1,2% or R1,25 at R105,70, having earlier traded at a two-year high of R106. Harmony rose 1,04% or 90 cents to R87,15 and AngloGold Ashanti added 1,51% or R4,40 to R296.
Junior miner Western Areas leaped 3,26% or R1,01 to R32 and DRDGOLD rallied 3,42% or 34 cents to R10,29.
Other strong performers on Tuesday included media group Naspers, which notched up 2,17% or R2,30 to R108,30 and food group Tiger Brands, which gained 1,05% or R1,50 to R144.
Electronics group Reunert, which earlier reached a record high of R51,20, was 2,27% or R1,12 in the black at R50,40.
Mittal Steel firmed 36 cents to R52,35.
Life assurer Sanlam was 10 cents stronger at R13,48 and Liberty Group climbed 1,01% or 70 cents to R70,20.
On the downside, global resources group BHP Billiton eased 35 cents to R98,30 and Anglo American dipped five cents to R209,45.
AngloPlat tumbled 2.47% or 12 rand to 473 rand and Impala slipped 1,22% or R11 to R889.
There has been profit taking in the likes of Impala and Amplats, which is long overdue, but unfortunately it is not on great volume,” the dealer commented.
Swiss-listed luxury goods group Richemont retreated 1,14% or 31 cents to R27 and London-listed brewer SABMiller weakened 80 cents to R117,20.
Pulp and paper producer Sappi was 1,33% or one rand softer at R74,20 and services group Bidvest dropped 1,28% or R1,20 to R92,80.
Hospital group Netcare was 2,83% or 20 cents in the red at R6,87.
Furniture group Steinhoff fell 1,65% or 32 cents to R19,08 and retailer Edcon slumped 2,05% or 65 cents to R31.
London-listed financial services group Old Mutual fell 1,18% or 20 cents to R16,80.
Nedbank slid 1,7% or R1,58 to R91,40, FirstRand was off 14 cents at R16,11 and Standard Bank gave up 30 cents to R69,70. Absa eased 30 cents to R88,50. – I-Net Bridge