The JSE was weaker in noon trade on Friday as concerns about the record high oil price and its inflationary effects continued to dampen global market sentiment. The bourse was well off its lows, however, helped by a higher gold price and an element of bargain hunting.
By 12.20pm, the all-share index was off 0,47%. Industrials lost 0,99%, while the financial and banks indices fell 0,63% and 1,16% respectively. Resources were flattish (-0,03%) and the platinum-mining index weakened 1,34%, but the gold-mining index gained 1,06%.
The rand was bid at R7,20 per dollar, little changed from its level when the JSE closed on Thursday, while gold was quoted at $660,55 a troy ounce from $648,29/oz at the JSE’s last close.
“We’ve seen a continuation of oil and inflation fears. Our market was very tender at the opening and futures were down in a big way,” a dealer said. “Our market was grilled at the opening, but then started to fight back and we are now basically at the best level seen all day.”
He added that some of the gold shares were shining, taking their lead from the stronger gold price.
“Sasol was under enormous pressure yesterday [Thursday] and today it has recovered somewhat. Its weakness yesterday caught a lot of people off guard,” he commented.
The dealer said that some bargain hunting had also possibly come into the JSE at the weaker levels.
In terms of corporate news, the main story of the morning was Highveld Steel & Vanadium (Hiveld), which nosedived 13,51% or R10 to R64 after trading as low as R63,50.
This followed an announcement before the opening about the disposal of Anglo American’s 79% stake.
Anglo said that it was initially selling 24,9% stakes in Hiveld to both Evraz and Credit Suisse. Subject to regulatory approval, Evraz will exercise an option to buy Anglo’s remaining 29,2% stake in Hiveld as well as the stake acquired by Credit Suisse.
The stake was sold at R62,36 per share, so the pressure on Hiveld’s share price was not unexpected.
Anglo shares were down one rand at R288, while global resources group BHP Billiton eased 25 cents to R138,50.
Petrochemicals group Sasol, however, strengthened 1,04% or R2,76 to R267.
Gold Fields jumped 2,3% or R3,74 to R166,50 and Harmony was 96 cents higher at R112,65, but AngloGold Ashanti shed R1,01 to R340.
Impala Platinum tumbled 2,44% or R32 to R1 280 and AngloPlat lost three rand to R734.
Northam, however, jumped 2,38% or one rand to R43 after touching a record high of R43,50.
Northam advised on Friday that its earnings per share and headline earnings per share for the year ended June 2006 are expected to be between 290 and 310 cents, compared with 107,3 cents for the prior year.
Swiss-listed luxury-goods group Richemont retreated 2,08% or 65 cents to R30,56.
Brand-management group Barloworld surrendered 1,87% or R2,19 to R114,81 and services group Bidvest shed 1,58% or R1,55 to R96,70.
Retailer New Clicks slid 2,17% or 20 cents to nine rand, but Woolies rebounded 2,3% or 30 cents to R13,35.
Media group Naspers bounced 78 cents to R116,78.
Life insurer Liberty Group gave up 1,78% or R1,25 to R69 and Sanlam was 10 cents softer at R14,60.
Banking group Absa dropped 2,05% or R2,10 to R100,50, Nedbank surrendered 1,72% or two rand to R114,50, Standard Bank slipped 1,54% or R1,15 to R73,65 and FirstRand fell five cents to R16,80.
Investment company Remgro, however, rose 1,48% or two rand to R137. — I-Net Bridge