A stronger rand and some profit-taking saw the JSE in the red in noon trade on Wednesday after two days of strong gains.
Dealers said profit-taking on resources giant Anglo American, which went ex-dividend in London on Wednesday morning, and on BHP Billiton, which presented strong results during the morning session, was leading the market’s downside.
By 12pm, the all-share index was down 1,13%. The resources and gold-mining indices were 1,88% and 1,25% weaker respectively, while the platinum-mining index shed 1,79% in the morning session. Industrials and financial indices fell 0,57% and 0,43% respectively, while the banks index was a paltry 0,09% in the black.
The rand was bid at 7,05 per dollar from 7,11 when the JSE closed on Tuesday, while gold was quoted at $624,85 a troy ounce from $622/oz at the JSE’s last close.
“The stronger rand is obviously the main driver, but we’re also seeing a bit of profit-taking on Anglo, which went ex-dividend in London this morning,” a local equities trader said.
Anglo, which reached record highs on Monday and Tuesday, weakened R4 or 1,23% to R21.
BHP Billiton’s shares tumbled 3,89% or R5,55 to R137 in the morning session.
Before the opening, BHP Billiton reported basic earnings per share of US173,2c for the year ended June, up 66% from 104,4c a year ago.
A final dividend of US18,5c per share was declared, up 27,6% from a year ago, making a total dividend of 36c from 28c before.
As expected, BHP Billiton announced a $3-billion capital return, bringing the total return for the financial year to $5-billion.
Cortex derivatives trader Lavan Gopaul said that while the results were excellent, the share had run up way ahead of them over the last couple of days.
Petrochemicals group Sasol slipped R1,50 to R261.
Among gold counters, Gold Fields fell 1,02% or R1,50 to R145,50, Harmony slid 1,38% or R1,42 to R101,60 and AngloGold Ashanti shed 1,58% or R5,53 to R345,02.
Among platinum shares Impala slipped 1,97% or R26 to R1 294, while AngloPlat surrendered 1,77% or R14 to R776.
Among industrials, Swiss-listed luxury goods group Richemont retreated 1,18% or 39c to R32,80.
Hospital group Netcare was down 2,10% or 25c at R11,65 after trading at a fresh record high on Tuesday.
Media group Naspers lost 70c to R122,80.
Retailer Woolies weakened 1,35% or 18c to R13,12. Before the opening, it reported headline earnings per share (HEPS) of 105c for the year ended June, up 17,4% from 89,4c a year ago. On a diluted basis, HEPS were up 18% to 103c from 87,3c before.
A final dividend of 39c per share was declared, making a total dividend of 63c from 54c before.
The I-Net Bridge analysts’ consensus forecasts was for HEPS of 109c and a dividend of 65c.
Shoprite was up 21c at R24,50 after it reported diluted headline earnings per share adjusted for exchange differences of 145c for the year ended June, up 10,4% from 131,3c a year ago.
A final dividend of 46c per share was proposed from 28c a year earlier, making a total dividend of 73c from 50c before.
On the financial front, London-listed Old Mutual fell 1,56% or 34c to R21,40 and Sanlam shed 0,46% or 7c to R15,23.
Banking group FirstRand, however, gained 5c to R17,35 but Standard Bank dipped 4c to R77,70.
Short-term insurer Santam, however, added 0,72% or 52c to R72,50. — I-Net Bridge