The JSE was marginally weaker in noon trade on Friday, taking its cue from world markets. A slightly softer rand and strength in retailers — which were boosted by a positive trading update from Foschini — pared the bourse’s losses.
By 12.03pm, the all-share index shed 0,2%. The resources and platinum-mining indices retreated 0,66% and 0,47% respectively. While the banks index was down 0,32%, the financial index was flattish (-0,04%). The all-share industrial index climbed 0,18% however, while the gold-mining index gained 0,66%.
The rand was bid at R6,08 per dollar from R6,07 when the JSE closed on Thursday, while gold was quoted at $547,40 a troy ounce from $544,30 /oz at the JSE’s last close. On Wednesday night, the rand broke below R6 per dollar for the first time since May last year.
“The market is down marginally,” a dealer said. “World markets are easier and the Dow was down overnight.”
He added that United States markets were closed on Monday for Martin Luther King Day.
“I don’t think we’ll see much from the US today ahead of the long weekend, and everything here is taking a back seat as a result,” he continued.
However, the rand had weakened slightly from levels seen earlier in the day and this was pushing gold shares firmer.
“We had a trading update form Foschini which was ahead of forecasts and retailers are firmer on the back of that,” he commented.
There was no clear driver in the market, which was why it was looking a bit wishy-washy, the dealer concluded.
On the JSE’s downside, London-listed resources group Anglo American was off 40 cents at R211,65, while BHP Billiton lost 1,63% or R1,70 to R102,60.
Petrochemicals group Sasol slipped 1% or R1,90 to R218,80.
Impala Platinum weakened R7,90 to R952,10 and AngloPlat was R1,90 lower at R453,10.
Highveld Steel & Vanadium dropped 1,74% or R1,66 to R94.
London-listed brewer SABMiller was down R1,01 at R119,25.
The dealer said that the easing in the rand off its best levels had encouraged profit-taking in banks, which have had a phenomenal run of late.
Nedbank surrendered 85 cents to R102,75, Standard Bank slipped 25 cents to R81,75 and FirstRand dipped four cents to R19,35.
Life assurer Liberty Group gave up 1,59% or R1,30 to R80,70.
On the market’s upside, AngloGold Ashanti added 1,06% or R3,44 to R326,50, Harmony was 45 cents higher at R87 and Gold Fields firmed 34 cents to R113,70. DRDGold leaped 4,57% or 48 cents to R10,98.
Foschini, which earlier traded at a lifetime high of R58,95, was 2,64% or R1,49 stronger at R58.
Foschini on Friday reported a 19,4% rise in group sales for three months (14 weeks) to the end of December 2005 compared with the year-earlier period, “well above” the company’s expectations.
Releasing a trading update on Friday, Foschini said lower inflation and interest rates continued to benefit consumer confidence. All of its divisions had performed well above budget, with sales for comparable stores rising by 14%. Average merchandise inflation for the period was 3%.
The group said its December Christmas trading had been “extremely buoyant”, with overall sales growth of 22% and same-store growth of 16,6%.
Truworths jumped 2,44% or 61 cents to R25,61. It earlier reached an all-time high of R25,70.
Furniture retailer Ellerine was quoted at a strongest-to-date R71, after picking up 2,6% or R1,80. JD Group was 1,44% or R1,15 better at R81,15.
Cement producer PPC was bolstered 2,33% or R7,46 to R328, while construction group Aveng advanced 2,17% or 45 cents to R21,20, just two cents off its record high reached intraday.
Telecoms group Telkom was up R1,39 at R148,89, while the MTN Group gained 25 cents to R62,95.
Mittal Steel bounced 1,13% or 70 cents to R62,50.
Hospital group Netcare rose 2,32% or 18 cents to R7,93.
Health and life insurer Discovery was 1,61% or 40 cents in the black at R25,20.
London-listed financial-services group Old Mutual inched seven cents higher to R18,43. — I-Net Bridge