The JSE was weaker in noon trade on Wednesday in trade that was dominated by softer commodity prices and futures-related activity ahead of Thursday’s close-out. Gold stocks bucked the trend, however, despite a lower bullion price.
By 12.07pm, the all-share index shed 0,3%. Resources retreated 0,37% and the platinum-mining index tumbled 2,11%, but the gold-mining index gained 0,85%.
The financial and banks indices fell 0,52% and 1,05% respectively, while the all-share industrial index was flat.
The rand was bid at R6,27 per dollar from R6,30 when the JSE closed on Tuesday, while gold was quoted at $515,45 a troy ounce from $520,80/oz at the JSE’s last close.
“Gold stocks seem to have found their feet in the [United] States, which is the only fundamental reason why they are up here,” a dealer said.
“There might have been some short-covering in the States, which has followed through here, but I think it will be a very short-lived positive session. The gold price is much lower than it was when New York closed so, when the States comes in, I think they will give the stocks a bit of a hiding.”
The dealer said that on the whole, the market was being driven by lower commodity prices and activity related to Thursday’s futures close-out.
“Everything has a soft feel about it. We have been expecting profit-taking to come through ahead of the end of the year. The rollover of futures contracts has underpinned the market and given it a false strength, but once the rollover of contracts to the next quarter is complete, this underpin will fall away and we might see the market weaken for the rest of the year.”
On the gold-mining index, Gold Fields firmed 1,42% or R1,49 to R106,69. AngloGold Ashanti added R1,94 to R292 and Harmony rose 25 cents to R81,25. DRDGold jumped 1,14% or 10 cents to R8,85, but Western Areas dipped two cents to R38,50.
London-listed diversified resources group BHP Billiton weakened 85 cents to R98,75 and Anglo American was off 61 cents at R210.
Impala Platinum slumped 2,71% or R24,55 to R881 and AngloPlat lost 1,32% or six rand to R448.
Petrochemicals group Sasol, however, inched 20 cents higher to R218,70.
On the all-share industrial index, London-listed brewer SABMiller slipped 71 cents to R115,80.
Media stocks surrendered some of Tuesday’s gains, with Naspers sliding 2,12% or R2,50 to R115,50. Caxton dropped 3,06% or 49 cents to R15,50 and Johnnic Communications surrendered 46 cents to R51,25.
Retailer Lewis was 2,32% or R1,05 lower at R44,25.
Pick ‘n Pay gave up 24 cents to R26,70.
Edcon was down 24 cents at R33,40 and Foschini, which earlier traded at a record high of R48,85, was 21 cents in the red at R48,60.
While Mittal Steel was 35 cents softer at R59,65, Hiveld strengthened 74 cents to R85,25.
Services group Bidvest was 1,5% or R1,29 better at R87,36 and brand-management group Barloworld climbed 78 cents to R104,78.
Telkom rose 1,43% or R1,89 to R133,60.
Life assurer Old Mutual fell 15 cents to R17 and Liberty Group was 50 cents lower at R71,50, but Sanlam bounced 1,16% or 16 cents to R14,01.
Short-term insurer Mutual & Federal leaped 3,14% or 88 cents to R28,88 — its strongest since 1998.
Nedbank was 50 cents in the black at R92,05, but Absa slid 1,51% or R1,50 to R97,80, FirstRand fell 2,17% or 38 cents to R17,17 and RMB Holdings surrendered 1,81% or 48 cents to R26,02.
Standard Bank shed 30 cents to R71.
Specialist bank Investec plc was down two rand at R273 and Investec Ltd lost 1,23% or R3,34 to R268,71. Investec plc earlier traded at a best level since February 2000 of R280. — I-Net Bridge