The JSE was weaker just before midday on Monday, dragged down by a strong rand, weaker world markets and gold coming off its best levels. A technical problem with the futures market made for very light volumes on the bourse however.
By 11.55am, the all share index lost 0,36%. Resources retreated 1,07%, the gold mining index tumbled 2,19% and the platinum mining index weakened 0,49%.
The all share industrial index was flat (-0.04%), but the financial and banks indices firmed 0,35% and 1,01% respectively.
The rand was bid at 6,37 per dollar from 6,38 when the JSE closed on Friday, while gold was quoted at $505,65 a troy ounce from $504,95/oz at the JSE’s last close.
“The market doesn’t look great,” a dealer said. “It has gone into quiet mode — Safex being down is obviously impacting quiet heavily there.”
He added that the rand’s continued strength was weighing on the market.
Gold, which traded at a fresh twenty-two and a half year high of $508,63/oz had also pulled back, which was weighing on gold shares.
“World markets are also weaker. Oil popped up $2 this morning,” the dealer continued.
He noted, however, that the firmer currency was helping banking stocks.
The rand broke below R6,40 per dollar for the first time in two months on Friday, supported by the rampant gold price.
In morning trade, global resources group BHP Billiton weakened 1,15% or R1,15 to R98,80 and petrochemicals group Sasol slumped 1,92% or R4,05 to R206,85.
London-listed Anglo American was off 51 cents at R202,60.
Gold Fields fell 2,91% or R2,94 to R98, Harmony dropped 2,45% or R1,96 to R78,04 and AngloGold Ashanti shed R1,95 to R277.
AngloPlat was 1,15% or five rand softer at R430.
On the all share industrial index, Swiss-listed luxury goods group Richemont surrendered 20 cents to R25,10.
Hospital group Netcare weakened 1,47% or 10 cents to R6,70.
Furniture retailer JD Group fell 2,99% or R2,20 to R71,50 after going ex-dividend of R1,67 per share.
Foschini was down 1,08% or 50 cents to R45,90 and Edcon gave up 25 cents to R31,10.
Highveld Steel & Vanadium, however, jumped 2,05% or R1,70 to R84,50 and Mittal Steel strengthened 1,21% or 70 cents to R58,70.
Cement producer PPC perked up 1,29% or R3,99 to R314.
Telkom gained 1,12% or R1,50 to R135,50 and MTN Group was 20 cents better at R57,20.
On the financial front, Old Mutual fell 15 cents to R17,35 and Liberty Group lost 65 cents to R74,10, but Sanlam strengthened 10 cents to R13,35.
Standard Bank was bolstered 1,18% or 80 cents to R68,80, FirstRand firmed 1,57% or 25 cents to R16,20 and Absa added 30 cents to R89,30. Nedbank was unchanged at R88. – I-Net Bridge