The JSE was mixed and moving sideways by midday on Monday, although traders were keeping a firm eye on resources counters, the rand, gold and the oil price for another potential push firmer.
By 11.49am, the all-share index was up 0,32%, with resources leading the way. The resources index set the pace with a 1,10% gain, the gold index was 1,32% firmer while platinum was up by 1,34%. The financial index was 0,28% lower and the banks index 0,86% down, while industrials lost 0,22%.
The rand was bid at 7,71 per dollar from 7,7640 when the JSE closed on Friday, while gold was quoted at $602,05 a troy ounce from $595,95/oz at the JSE’s last close.
“It was very mixed by midday and moving sideways,” said senior dealer from SA Stockbrokers, Tim des Bois.
“Gold was not doing much and we were looking for it to go to $607 and above,” he added.
“There are also major levels on oil being monitored at the moment, with Sasol being a main driver on the market recently,” said Des Bois.
“The rand is also a big driver due to the impact on the rand hedges. A weakening trend is in shape, but some support at 7,45 could be tested before we break above 8,07 to the dollar,” he concluded.
Financial services group Alexander Forbes was a feature in early trade, with shares up 50c, or 3.13%, to R16,50, amid press reports that a consortium of private equity firms, led by the United Kingdom’s Actis and including Ethos and two Canadian fund managers, is believed to be in the final stages of preparing a R9,1-billion bid to buy the company.
Business Day reported on Monday that it is understood that the consortium, which also includes Canada’s second-largest fund manager, the Ontario Teachers Pension Plan, and Caisse de Depot et Placement du Quebec, submitted a binding offer to Alexander Forbes last week.
In other news South African gold miner AngloGold Ashanti on Monday revealed details of its empowerment transaction with the National Union of Mineworkers, Solidarity, union Usas and Izingwe Holdings.
The three unions and the company have agreed the architecture of an employee share ownership plan (Esop), to be called the Bokamoso Esop — “harvesting for the future”. All employees at AngloGold Ashanti’s South African operations, including the corporate office, who are not participants in any current share-incentive scheme, will qualify as beneficiaries of the Bokamoso Esop. AngloGold Ashanti was last at R292, a gain of 0,27%.
Mittal Steel South Africa on Monday announced it would be increasing prices on selected flat and long steel products from November 1.
Mittal Steel South Africa says it will limit its steel price increase to 5% on selected products. Mittal was last down 45c to R78,05, while Highveld was up by 50c to R66,50.
Among other resources stocks, Anglo American was up R6, or 1,86%, to R328,50, while BHP Billiton gained 71c to R134,37.
Petrochemicals group Sasol retreated by 50c to R255,50.
Gold counters had a good morning and Gold Fields collected 1,86%, or R2,56, to R140,05 and Harmony added 223c to R102,82.
AngloPlat advanced 0,76%, or R5,99, to R793, but was down from earlier levels, while Impala Platinum advanced by R20, or 1,56%, to R1 305.
Industrials were mixed, with global brewing giant SABMiller up 47c to R144,75 and Bidvest was 0,71% lower at R112,20. Retailers were also mixed with Massmart up just 4c to R56,95 and furniture retailer JD Group down 81c to R64,19.
Among banks, Nedbank shed 75c to R113,45, Absa was 90c softer at R98,60, while Standard Bank was 58c lighter at R77,23. — I-Net Bridge