The JSE was mostly flat by midday on Tuesday, with no fresh news to give the local market direction. Traders said with the United States market disappointing on Monday — it ended up just nine points after being ahead over 100 at one stage — the local market lacked impetus.
Also keeping the market subdued was the fact that the futures market was in a tight 200-point range, which was, in turn, keeping the JSE in a tight band.
By noon, the all-share index was flat — up just 0,18%, with the gold-mining index up 0,92%, resources flat (+0,14%) and the platinum mining index up 0,34%. Industrials were 0,28% better, while financials and banks were virtually unchanged.
The rand was bid at 6,89 per dollar from 6,84 when the JSE closed on Monday, while gold was quoted at $624,90 a troy ounce from $627,99/oz at the JSE’s last close.
Lavan Gopaul, head trader at Cortex Securities, said volumes on the JSE were very thin.
He said that while the weaker rand had not had much of an impact so far, it would be watched closely on Tuesday afternoon when the US Producer Price Index (PPI) number comes out.
The US PPI data, due for release at about 2.30pm South African time, could show some inflationary tendencies, which would likely cause the dollar to rally, which would have a negative effect on bonds and the rand, Gopaul explained.
“That then would have a knock-on effect on the JSE,” he noted.
By midday, London-listed diversified resources group Anglo American had advanced R1,03 to R302, but BHP Billiton was down 10c at R128,50.
Petrochemicals group Sasol was down R2,24 to R257,74.
AngloPlat was up 50c to R751 and Impala was up R8,01 to R1 268.
Among gold counters, AngloGold Ashanti, which went ex-dividend of 210c per share Monday, was up 25c to R335, Gold Fields was up R1,33 to R137,65 and Harmony added R2,45 to R93.
Industrials were a mixed bag, with Swiss-listed luxury goods group Richemont up 15c to R30,15 and London-listed brewer SABMiller R1,70 better at R137. But brand management group Barloworld was down 21c to R119,29 and Tigerbrands shed R1,30 to R146,75 rand. PPC rallied 2,46%, or R9,40, to R391,40.
MTN Group was 40c firmer at R53 and Telkom added R1,90 to R132.
On the financial index, London-listed Old Mutual was off 3c to R19,97.
Among banks, Standard Bank added 45c to R74,20, but FirstRand was off 5c to R16,15 and Nedbank retreated R2,10 to R103.
Gopaul noted that some of the fashion retailers were weaker, with Foschini down 68c to R43,70 and Edcon shedding 13c to R27,02. However, Mr Price was 25c higher at R18,50. — I-Net Bridge