A pullback in precious-metals prices knocked the JSE on Tuesday, leaving the overall index in the red in late-morning trade. Banks bucked the weaker trend as some of the money from resources found its way into the sector.
By 11.46am, the all-share index shed 0,7%. Resources retreated 1,38%, the gold-mining index slumped 3,68% and the platinum-mining index slid 1,57%. Industrials were 0,47% weaker. Financials inched 0,08% higher, while the banks index was 0,54% in the black.
The rand was bid at R6,32 per dollar from R6,31 when the JSE closed on Monday, while gold was quoted at $522,70 a troy ounce from $536,05/oz at the JSE’s last close. Gold traded at a best level since March 1981 of $541,80/oz on Monday morning, while platinum touched a highest level since March 1980 of $1 017,50/oz.
A dealer said that the JSE’s weakness was mainly a commodity play.
“We have seen general profit-taking on the back of commodities. Hard-line commodity prices have come down quite dramatically,” he commented.
He said that there was some switching from resources stocks into banks, hence the slight strength in that sector.
On the resources index, London-listed Anglo American was 1,4% or three rand lower at R211,50 and BHP Billiton weakened 1,28% or R1,30 to R99,99.
Gold Fields dropped 4,59% or R5,14 to R106,75, Harmony plunged 3,92% or R3,37 to R82,57 and AngloGold Ashanti slipped 2,67% or R8,17 to R297,78.
Junior miner DRDGold was down 4,22% or 38 cents to R8,62.
Impala Platinum was 1,3% or R11,99 lower at R908 and iron-ore miner Kumba surrendered 1,12% or R1,17 to R102,85.
Petrochemicals group Sasol, however, climbed R2,01 to R217.
On the all-share industrials index, Swiss-listed luxury-goods group Richemont was down 1,13% or 30 cents to R26,26 and London-listed brewer SABMiller weakened 1,68% or two rand to R117.
Pulp and paper producer Sappi was 1,48% or R1,10 softer at R73,40.
Media group Naspers, however, leaped 2,17% or R2,50 to R117,50. Caxton was up 3,45% or 50 cents at R15 and Johnnic Communications jumped 2,56% or R1,30 to R52.
Tongaat-Hulett strengthened 1,32% or one rand to R76,50.
On the financial front, Standard Bank was 40 cents stronger at R71,30 and FirstRand firmed 1,03% or 18 cents to R17,58 after trading at a best-to-date R17,61. Nedbank was 14 cents in the black at R92,64, but Absa eased 50 cents to R99,50.
Investment company Remgro rose 1,05% or R1,20 to R116.
Life assurer Old Mutual 1,29% or 23 cents to R17,60 and Liberty lost 2,42% or R1,80 to R72,70.
The National Treasury and the CEOs of South Africa’s top five life insurers on Monday signed a statement of intent agreeing to set minimum standards of conduct, including an agreement to reimburse past policyholders going back to January 1 2001, that will cost the industry a total of R2,6-billion. — I-Net Bridge