Profit-taking, following its strong run in recent days, saw the JSE in negative territory just after noon on Tuesday. A stronger rand, gold coming off its highs and weakness in dual-listed stocks offshore all encouraged the selling locally.
By 12.07pm, the all-share index shed 0,68%. Resources retreated 0,92% and the gold- and platinum-mining indices tumbled 2,13% and 2,12% respectively.
Industrials lost 0,39%, financials fell 0,7% and the banks index was 0,75% in the red.
The rand was bid at 6,05 per dollar from 6,11 when the JSE closed on Monday, while gold was quoted at $586,60 a troy ounce from $590,65/oz at the JSE’s last close.
“The market is giving back some of its profits after being pushed up yesterday [Monday],” said Cortex’s Lavan Gopaul. “In particular, gold shares have come under a bit of pressure. AngloGold has come off quite sharply.”
He asserted that AngloGold seemed to have “overshot the mark” as it was pushed up quite sharply about two weeks ago when Anglo American said it was going to reduce its stake in the company.
Gopaul continued: “Some of the shares have hit very important technical levels. Anglo is struggling to make headway and Sasol is also struggling to go above its current range.”
A lack of news was also contributing to the negativity, he said, creating a reluctance to push a market that remained near record highs.
The strong rand, weakness in dual-listed stocks offshore and gold coming off its highs around $590/oz were all contributing to the JSE’s weakness on the day, he concluded.
AngloGold Ashanti shares slumped 3,56% or R12 to trade at R325,50. Gold Fields fell 1,25% or R1,72 to R136,03 and Harmony was 1,48% or R1,50 lower at R100.
Junior miner DRDGOLD dropped 5,78% or 54c to R8,81.
Impala Platinum slid 2,63% or R32 to R1 183 and AngloPlat lost 1,04% or R6 to R573.
Petrochemicals group Sasol was 1,67% or R4 softer at R235.
London-listed BHP Billiton eased 41c to R117,64, while Anglo American dipped 15c to R240,95.
On the all-share industrial index, Swiss-listed luxury goods group Richemont surrendered 22c to R29,28 and London-listed brewer SABMiller shed 56c to R121,45.
Telkom lost 1,14% or R1,90 to R164,10 and MTM Group gave up 35c to R61,75.
Retailer Shoprite slid 1,96% or 45c to R22,50. Truworths tumbled 2,47% or 71c to R27,99 and Edcon was off 1,36% or 53c to R38,35.
Food group Tiger Brands was one rand softer at R173,50. It announced before the opening that it was to acquire Bromor Foods from Cadbury Schweppes for R1,16-billion.
Media group Naspers, however, gained R1,02 to R129,02.
Furniture group Steinhoff was up 1,31% or 30c at R23,13 after earlier trading at a record high of R23,35.
Retailer Pick ‘n Pay rose 23c to R31,13.
London-listed financial services group Old Mutual fell 1,3% or 28c to R21,23, while local rival Sanlam slipped 15c to R16,45.
Standard Bank was 1,26% or R1,11 in the red at R86,69, Absa weakened R1,01 to R116,49, Nedbank was down R1 at R129,50 and FirstRand retreated 15c to R20,23.
RMB Holdings, however, climbed 24c to R29,65.
Micro lender ABIL advanced 1,3% or 40c to R31,20. — I-Net Bridge