The JSE pared its early gains to just a six point increase by midday on Wednesday as traders awaited key United States inflation data and as the market absorbed a weaker FTSE market. Gold shares, however, continued to lead the pack.
By 11.52am, the all-share index was up a mere 0,03% after being up 0,40% in early trade, with the platinum-mining index reversing earlier losses to be up 0,40% from being down 0,32% in early trade, and the financials index moving into the down category by 0,24% as well as banks, down 0,35%. Resources were up 0,22% with the gold-mining index still strong, being up 1,05%. Industrials were, however, 0,03% weaker.
The rand was at 6,8518 per dollar from 6,8493 when the JSE closed on Tuesday, while gold was quoted at $627,08 a troy ounce from $621,80/oz at the JSE’s last close.
Earlier, head of proprietary trading at Nedbank Capital Markets, Arthur Buchner, said he was not convinced the party would last based purely on current events and so it proved during the morning, with the FTSE’s leading shares weak in early deals.
“Leading shares were weak in early deals after yesterday’s gains, as investors retreated from the 5 900 level, with strong gains overnight on Wall Street and in Asia countered by uncertainty ahead of key data today in the United Kingdom and the US,” reported AFX.
Another local dealer added that all eyes would be on US CPI (consumer price index) data later this afternoon.
“We have moved down in the morning as the FTSE wasn’t strong and now we’re waiting for the US data. The market remains uncertain,” the dealer added.
The main focus today will also be on a key batch of economic data, most particularly the latest US inflation report, due out at 2.30pm this afternoon.
AFX reports that after Tuesday’s tame PPI (producer price index) report, July US CPI is forecast to rise 0,4%, after June’s 0,2% rise, although the core CPI rate is seen flat at 0,3%.
Investors will also have US July housing starts, industrial production and capacity utilisation numbers to digest on Wednesday.
“There wasn’t much follow-through this morning,” the South African dealer added.
“However, in the current environment I’m looking at a share like Tiger Brands that won’t be affected too much by all the volatility,” he added.
Among South Africa’s gold counters Anglogold Ashanti held ground to be up 1,50% to R340, Harmony was up 1,30%, down from the 2,05% gain in early trade, to R93,30 from a previous close of R91,10 and among the resources Anglo reversed much of its early strength to R304,50 from R306 earlier and R304,40 at the previous close. BHP Billiton was up 29c from a previous close of R129,01.
Among the platinum counters Angloplat was up R15,10 on the day at R775,10 after being at R765 in early trade but Impala fell R13,56 to R1 271.
Retailers were still strong by midday with JD Group up by 1,42% to R64,40 and Truworths up 3,38% to R22,95, while beverage company SAB Miller was down R1 to R138.
After reporting an increase in headline earnings per share of 17% from 327,4c to 384c for the six months ended June, Standard Bank was still a little weak, down 0,41% to R73,70, but banks across the board were seen suffering by the close of the midday session. — I-Net Bridge