The JSE was weaker in noon trade on Friday, after lower commodity prices knocked heavyweight resources stocks. Volumes were extremely light, however, ahead of the release of United States consumer price index data.
By 12.08pm the all-share index slipped 0,51%. Industrials dipped 0,07%, financials were flat (+0,01%) and the banks index eased 0,2%. The resources and gold-mining indices — for which data was last updated at 9.43am — retreated 0,96% and 2,52% respectively. The platinum mining index was off 0,17%.
The rand was bid at 7,41 per dollar from 7,39 when the JSE closed on Thursday, while gold was quoted at $578 a troy ounce from $588,27/oz at the JSE’s last close.
A dealer said that the JSE’s weakness was primarily a resources play.
“Oil is down and other commodities have followed and that has translated into weakness in resources shares,” he explained.
He continued that the commodity cycle was what had lifted the market for the whole year and there was bound to be some sort of correction.
“We’ve just got to wait for the cycle to run its course. But I don’t think it will be a total meltdown in commodities. I don’t think this is end of the commodities super cycle. It is probably just taking a few weak holders of commodities out of the picture.”
Turning to the JSE’s upside, the dealer noted that there were a few counters attracting attention.
“Richemont is benefiting from its trading statement and Bidvest is re-rating after its results early this month. Liberty International has been an absolute sparkler — it is up 60% from the beginning of the year.”
On the resources index, London-listed Anglo American lost 1,51% or R4,56 to R297,99 and BHP Billiton weakened R1,06 to R129,19.
Gold Fields tumbled 2,1% or R2,75 to R128, AngloGold Ashanti shed 1,46% or R1,32 to R289,55 and Harmony was 1,46% or R1,32 lower at R89,28.
Petrochemicals group Sasol surrendered R2,05 to R231.
Among industrials, Swiss-listed luxury goods group Richemont rose 10c to R35,75. It earlier traded at a record high of R35,96. Richemont said on Thursday that its sales for the five months to the end of August were up 16% at actual exchange rates. This was despite a marked strengthening of the euro, in particular against the yen over the period.
London-listed brewer SABMiller climbed 57c to R144,30.
Services group Bidvest was 49c better at R113.
Brand management group Barloworld, however, weakened 99c to R130,01.
Illovo Sugar slumped 3,38% or 57c to R16,30 and food group Tiger Brands surrendered R1,46 to R147,04.
Retailer New Clicks tumbled 2,52% or 26c to R10,05.
On the financial front, London-listed financial services group Old Mutual firmed 1,1% or 25c to R23.
But Liberty Group gave up 1,07% or 75c to R69,65 and Sanlam was 9c softer at R15,81.
Absa was down 81c at R97,79 but Nedbank notched up 50c to R105,30.
Real estate group Liberty International was R1,49 in the black at an all-time high of R163,49. — I-Net Bridge