After ending on a record high on Monday, the JSE was taking a breather on Tuesday, weighed down by weaker metals prices and a firmer rand.
By noon, the all-share index was down 1,18%, due largely to a 3,33% fall in the gold-mining index, a 2,16% retreat in the resources index and a 1,74% decline in the platinum-mining index. Industrials were off 0,36%, while the financial index was 0,56% lower. However, the banks index was up 0,38%.
The rand was bid at 7,68 per dollar from 7,71 when the JSE closed on Monday, while gold was quoted at $593,25 a troy ounce from $600,14/oz at the JSE’s last close. Platinum was down $20/oz from its overnight close and was quoted at $1 127,50/oz.
“We had a good September, and now we are just having a breather. The resources stocks have run strongly and now they are having a slight pullback — but it’s nothing major. Weaker metals prices, coupled with the firmer, rand are causing the pullback,” a local equities trader said.
He added that volumes were fairly light.
Among resources stocks, Anglo American was down R8,15, or 2,43%, to R327 and BHP Billiton was off by R2,20, or 1,61%, to R134,50.
Petrochemicals group Sasol gave up R4,10, or R1,61%, to R249,90.
Among gold counters, AngloGold Ashanti was off by R8,90, or 3%, to R288, while Gold Fields lost R5,46, or 3,8%, to R137,79 and Harmony fell R2,99, or 2,85%, to R102.
AngloPlat retreated 1,89%, or R15, to R778, while Impala Platinum fell R22, or 1,68%, to R1 288.
Major industrials were mixed, with global brewing giant SABMiller up 59c to R144,15, Bidvest 91c better at R112,41 and Barloworld up R1,01 to R129.
However, Richemont was off 56c to R36,54 and PPC was R1 softer at R350.
Financial services group Alexander Forbes, which was a feature on Monday with shares up 2,62%, was up a further 18c, or 1,1%, at R16,60.
On Monday there were 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.
AFB countered this during the day, saying that while discussions with a consortium comprising private equity investors regarding the potential buyout of the South African company were continuing, no formal offer has been received.
Cellular operator MTN was down 30c to R61,50. Earlier MTN said that through its wholly owned subsidiary, MTN International (Mauritius), it intends to acquire a 6,98% interest in its major subsidiary MTN Nigeria Communications from certain minority shareholders for $349-million. The acquisition will increase MTN’s shareholding in MTN Nigeria to 81,87%.
Among banks and financials, Old Mutual was down 59c to R23,40, while Nedbank was 100c softer at R111.
Standard Bank, however, was up 84c to R78,24, while Absa collected 50c to R97,30. — I-Net Bridge