Despite reaching a record high at the opening, the JSE was in the red in noon trade on Thursday, beaten into retreat by the rand, which broke below the R6 per dollar level. Telkom, which was hammered after it announced that it planned to spend 30 billion rand over the next five years in capital investment on its fixed line operations, also dragged on the bourse.
By 11.55am, the all share index was down 0,3% at 20 622,9 and over 200 points off its record high of 20 863,689 reached in early trade. Industrials and financials fell 0,42% and 0,35% respectively and the banks index was 0,46% in the red. Resources eased 0,21%, but the gold mining index gained 0,77%. The platinum mining index was a marginal 0,05% higher.
The rand was bid at 5,99 per dollar from 6,02 when the JSE closed on Wednesday, while gold was quoted at $596,10 a troy ounce from $585,30/oz at the JSE’s last close. Gold traded at a 25-year high of $596,95/oz a few minutes earlier.
“The rand has had quite a weighing effect on the market. We’ve got firm global markets and metals prices are incredibly strong — everything else is supportive but we are down.”
He added that Telkom had been knocked by the capital investment news because of concerns that this could be to the detriment of its dividend.
The dealer noted that another negative influence could be that Anglo American had suddenly turned negative in London as had BHP Billiton, although the latter had been very strong in Australia.
Leading the JSE’s downside, Telkom dived 6,32% or R10,15 to R150,50.
Anglo lost 96 cents to R248,29 and BHP Billiton weakened 93 cents to R119,62. Anglo and Billiton earlier traded at lifetime highs of R254 and R123 respectively.
Other decliners included pulp and paper producer Sappi, which shed 1,84% or R1,65 to R88,10.
Food group Tiger Brands tumbled 2,45% or R4,34 to R172,56.
Brand management group Barloworld surrendered 1,23% or R1,65 to R132,75 and transport and logistics group Imperial retreated 1,18% or R2 to R168.
Retailer Pick ‘n Pay slumped 4,58% or R1,49 to R31,01 after a strong showing on Wednesday.
Life insurer Sanlam was off 12 cents at R16,19.
Standard Bank slipped 53 cents to R84,17, FirstRand fell 15 cents to R19,90 and Nedbank was 39 cents softer at R126,51.
Absa, however, added 1,08% or R1,25 to R117,25.
The rampant gold price boosted gold stocks, although the rand pared gains.
Gold Fields was 1,08% or R1,48 firmer at R138,68 and AngloGold Ashanti advanced R1,79 to R325. Junior miner DRDGOLD jumped 3,09% or 28 cents to R9,35.
Impala Platinum was up R2,99 at R1 238 after earlier trading at a lifetime high of R1 270.
Petrochemicals group Sasol ticked 40 cents higher to R234,40.
Swiss-listed luxury goods group Richemont climbed 19 cents to R29,60.
Cement producer PPC rallied 2,44% or R10,01 to R420 and construction company Group Five firmed 2,39% or 70 cents to R30.
Microlender ABIL was up 30 cents at R32,19. It earlier reached a record high of R32,29. – I-Net Bridge