The JSE was a mixed back just after noon on Wednesday, with players switching out of resources — the recent stars of the market — and into banks and retailers which were sold down sharply.
Overall, the air was one of caution ahead of the US Federal Open Market Committee (FOMC) decision on interest rates due on Thursday night.
By 12.19pm, the all share index eased 0,17%. Resources retreated 0,98% and the gold mining index lost 1,75%, but the platinum mining index inched 0,13% higher. Industrials climbed 0,24%, financials firmed 1,01% and the banks index jumped 2,29%.
The rand was bid at 7,27 per dollar from 7,26 when the JSE closed on Tuesday, while gold was quoted at $584,05 a troy ounce from $595,25/oz at the JSE’s last close.
“There is a bit of sector movement. Investors seem to be getting out of the resources sector and back into banks and retailers,” a dealer said.
He added, however, that the market was “unenthusiastic” as players awaited the US rates decision.
“Everyone is trying to hedge their bets about what the FOMC is going to do. There is speculation that there might be a fright here or there, but that is not true to the Fed’s form.”
The dealer said that a 25 basis point increase in US rates had already been priced into the market. There was also talk that the Fed might raise rates by 50 basis points and this had been 50% priced in.
On the JSE’s downside, London-listed Anglo American surrendered 1,61% or R4,50 to R275,50 and BHP Billiton slipped 1,73% or R2,29 to R129,70.
Harmony Gold dropped 3,26% or R3,52 to R104,50, AngloGold Ashanti shed 1,48% or R4,91 to R327,59 and Gold Fields fell 1,06% or R1,60 to R150.
Swiss-listed luxury goods group Richemont weakened 21 cents to R30,66.
Sugar producer Tongaat Hulett was 1,08% or R1 softer at R92 and pulp and paper producer Sappi shed 1,9% or R1,70 to R87,80.
On the upside, Impala Platinum jumped 1,13% or R13,95 to R1 248,95.
Petrochemicals group Sasol was 1,51% or R4,01 stronger at R269,76.
Services group Bidvest was up 2,39% or R2,29 at R97,99, while brand management group Barloworld was R1 better at R114,10.
Telkom leaped 2,49% or R3,21 to R132,20.
Furniture group Steinhoff firmed 2,18% or 44 cents to R20,65.
Retailer Massmart rallied 3,51% or R1,49 to R44 and New Clicks rose 2,13% or 17 cents to R8,17. Edcon was boosted 1,89% or 50 cents to R26,90.
Standard Bank rallied 2,82% or R1,98 to R72,23, FirstRand firmed 2,13% or 33 cents to R15,85 and Nedbank notched up 1,34% or R1,40 to R105,60.
London-listed financial services group Old Mutual was 17 cents in the black at R21,17. – I-Net Bridge