After opening firmer on Thursday morning, the JSE was in negative territory by midday. Traders said there was some profit-taking, but volumes were on the thin side as many players have already left for the long weekend.
There was little fresh corporate news, so players will turn to global markets, the rand and commodity prices for direction.
By noon, the all-share index was down 0,65%, with resources 0,69% weaker and the platinum-mining index off 1,78%. However, the gold-mining index was up 0,95% despite the softer bullion price. Industrials were down 0,47%, financials shed 0,84% and the banking index was 0,69% lower.
The rand was bid at 6,12 per dollar — unchanged from when the JSE closed on Wednesday — while gold was quoted at $596,55 a troy ounce from $598,92/oz at the JSE’s last close. On Wednesday gold traded above the $600/oz level for the first time since December 1980, but has since retreated below that level again as the market takes a breather.
“We have seen some profit-taking but volumes are very thin as many people are away. The market is down, really, on a lack of interest,” said an equities trader. He added that the rand has been quite volatile and this was affecting the dual-listed stocks.
Platinum stocks had retraced after a huge jump yesterday [Wednesday]. “But that often seems to be the case — when platinum stocks have a huge rise, they seem to drop the next day,” he added.
Platinum was last quoted at $1 076,50 an ounce — down $8,50/oz from its previous close.
The market is also awaiting the outcome of the Reserve Bank’s MPC meeting at around 3pm. The MPC is widely expected to leave the repo rate unchanged at 7%.
However, the market is mindful of recent hawkish comments by Reserve Bank governor Tito Mboweni that the bias was towards a tightening rather than a loosening monetary policy stance. The market will be watching the tone of the statement, which could offer some direction.
Local markets will be closed on Friday and Monday for the Easter long weekend.
On the resources index, London-listed diversified resources group Anglo American was down R1,16 to R253,99 and BHP Billiton shed R1,13 to R119,72.
Petrochemicals group Sasol was off R3,70 to R236,80 and pulp and paper producer Sappi shed 180c to R89,20.
Among gold counters Harmony Gold jumped 1,88% or R1,75 to R94,60, Gold Fields collected R1,30 to R138,65 and AngloGold Ashanti firmed 175c to R307,80.
AngloPlat lost 1,94% or R12,08 to R609,92 and Impala was off R20 to R1 160.
London-listed brewer SABMiller was down 80c to R122,20 and Richemont was 40c softer at R29,15.
Telkom was R1,35 stronger at R144,85, while MTN Group lost 33c to R59,94.
London-listed financial services group Old Mutual was 45c lower at R20,85 and Sanlam shed 25c to R16,01.
Absa was down 150c to R119,75, but FirstRand added 6c to R19,81 and Standard Bank was down R1 to R84. — I-Net Bridge