The JSE was a touch on the stodgy side in noon trade on Thursday, with the main dampener being a stronger rand. The JSE’s losses came despite firmer global markets and disappointing results from Gold Fields acting in concert with the currency to prevent gold shares from benefiting from a higher bullion price.
By 12.02pm, the all-share index eased 0,19%, while the financial and banks indices fell 0,08% and 0,16% respectively. Resources retreated 0,43% and the gold-mining index surrendered 0,96%, but the platinum-mining index perked up 0,17%. The all-share industrial index was a neither-here-nor-there 0,04% higher.
The rand was bid at 7,51 per dollar from 7,60 when the JSE closed on Wednesday, while gold was quoted at $592 a troy ounce from $588,33/oz at the JSE’s last close.
“The market is on the easier side and I would attribute that mainly to the stronger rand,” a dealer said. “Gold shares were up nicely in the [United] States, pushed by the gold price. The rand has taken them down and, also, Gold Fields results didn’t impress.”
He continued that gold shares had started the day firmer but had since come off.
“I think there has been a contagion effect from Gold Fields. The gold price Gold Fields received was 10% up, but earnings were below consensus. CEO Ian Cockerill said this morning costs were a problem,” the dealer commented.
While world markers were all quite strong, it was the rand that was knocking the JSE overall, he concluded.
In morning trade, Gold Fields shares fell 1% or R1,33 to R132,20 , Harmony slipped 1,53% or R1,75 to R113 and AngloGold Ashanti shed R2,33 to R318,08. DRDGOLD, however, gained 1,55% or 15c to R9,85.
Gold Fields on Thursday reported headline earnings per share for the quarter to end September of 140c – 14% higher than last quarter — on the back of a higher local gold price.
London-listed diversified resources group Anglo American weakened R2,55 to R341,50 and BHP Billiton lost R1,10 to R144,90.
Petrochemicals group Sasol climbed R1,75 to R261,75.
While Impala Platinum improved 1,06% or R13,99 to R1Â 335 , Northam surrendered 4,46% or R1,89 to R40,50 after rocketing over 9% on Wednesday.
Among industrials, Swiss-listed luxury goods group Richemont slid 1,03% or 39c to R37,60.
Illovo Sugar lost 1,35% or 23c to R16,77 and pulp and paper producer Sappi was 1,59% or R1,72 softer at R106,60.
City Lodge Hotels was 1,75% or R1 lower at R56.
Brand management group Barloworld, however, was 1,8% or R2,50 better at a lifetime high of R141,50 , while its subsidiary PP Cement leaped 3,47% or R12,50 to R373.
Construction group Murray & Roberts soared 6,03% or R2,20 to R38,70 and Group Five jumped 3,22% or R1,20 to R38.45 . Murray & Roberts and Group Five earlier traded at all-time highs of R39,53 and R39 respectively.
Furniture retailer JD Group gathered 2,66% or R1,97 to R7 .
Food retailer Pick ‘n Pay rang up 1,7% or 50c to R29,90 and Shoprite was 1,71% or 45c stronger at R26.75.
On the financial front, life insurer Liberty Group lost 50c to R73.50 and health and life insurer Discovery was 15c weaker at R23,45.
Standard Bank slipped 50c to R83,50 and FirstRand dipped 5c to R18,30.
Nedbank, on the other hand, was 20c in the black at R116 and Absa was up 30c at R107,90.
RMB Holdings rose 1,08% or 30c to R28,10. — I-Net Bridge