The JSE was weaker at midday on Monday following Friday’s sharp fall on Wall Street. The bourse was nevertheless well off the morning’s worst levels, with bargain hunters looking to pick up cheap stock.
By 12.12pm, the all-share and all-share industrial indices weakened 0,68% and 0,77% respectively. Resources retreated 0,83%, the platinum-mining index slid 1,48% and the gold-mining index eased 0,24%. Financials fell 0,36%, while the banks index was flat.
The rand was bid at R5,97 per dollar from R5,98 when the JSE closed on Friday, while gold was quoted at $558,75 a troy ounce from $567,20/oz at the JSE’s last close.
“The United States took a pounding on Friday, markets in the East were down today, we’ve still got a very strong rand and the gold price is down, so everything is making for a weaker market,” a dealer said.
She added, however, the after being down quite sharply earlier, the JSE had recouped some of this losses.
“Bargain hunters are trying to pick the lower levels. We saw this on Tuesday — the JSE’s last down day — and are seeing it again today,” the dealer explained.
On the resources index, London-listed Anglo American lost 1,35% or R2,90 to R212 and BHP Billiton slipped 1,55% or R1,70 to R108.
Impala Platinum weakened 1,24% or R11,90 to R945 and AngloPlat was off 1,77% or R8,10 to R449,90.
DRDGold dropped 3,39% or 41 cents to R11,69. AngloGold Ashanti shed three rand to R337 and Gold Fields dipped 35 cents to R125,85, but Harmony inched 71 cents higher to R95,71.
Helped by a spike in the oil price, petrochemicals group Sasol strengthened 1,36% to R230,50.
London-listed brewer SABMiller slumped 1,98% or R2,40 to R119 and Swiss-listed luxury-goods group Richemont surrendered 1,46% or 39 cents to R26,24.
Pulp and paper producer Sappi was 1,6% or R1,25 softer at R76,75.
Cellular network operator MTN Group was down 2,05% or R1,29 to R61,50.
Gases and welding products group Afrox, which went ex-dividend of 40 cents per share, was down 1,79% or 40 cents at R27,50.
Industrials to advance included cement producer PPC, which picked up R2,10 to R335. It was trading at R328 before it said that it expects its headline earnings per share for the six months to March 31 to be between 40% and 60% higher than for the comparable period last year.
Retailer Truworths rose 1,98% or 50 cents to R25,80, having earlier traded at a lifetime high of R25,90. Woolies climbed 1,19% or 18 cents to R15,35.
New Clicks was 2,19% or 20 cents higher at R9,35. It traded at R9,60 — its highest level since December 2004 — half-an-hour earlier.
New Clicks shares traded as low as R9 on Monday morning after the group released a trading statement before the opening, which a dealer described as slightly disappointing.
New Clicks reported a 15,1% increase in turnover for the four months to the end of December 2005 compared with that of the year-earlier period.
The group said its retail brands had increased sales by 9,8% during the period, while same-store sales were up 9,6%. UPD, the group’s wholesale pharmaceutical distributor, increased its turnover by 30,2%.
The company later announced that Trevor Honneysett is to retire as its CEO after 18 years in the position.
On the financial front, investment company Remgro was 1,2% or R1,48 in the red at R121,95.
Life assurer Sanlam slipped 1,23% or 20 cents to R16 and Liberty Group was 1,06% or 90 cents lower at R84.
Standard Bank eased 45 cents to R81,55, but FirstRand firmed 15 cents to R19,35 and Absa added 35 cents to R113,05. — I-Net Bridge