The JSE was just managing to keep its head above water in noon trade on Wednesday after a choppy morning’s trade on which stronger world markets and lower precious metals prices vied for supremacy.
By 12.03pm, the all-share index was up 0,08%. Industrials and financials climbed 0,29% and 0,47% respectively, but the banks index lost 0,51%. Resources retreated 0,3%, the gold-mining index gave up 1,78% and the platinum-mining index was 1,65% softer.
The rand was bid at 7,29 per dollar from 7,22 when the JSE closed on Tuesday, while gold was quoted at $621,40 a troy ounce from $628,15/oz at the JSE’s last close.
“The market is very mixed,” a dealer said. “World markets are looking good and the rand has weakened, but platinum and gold are both a bit lower.”
She added that there had been quite a few results out from retailers, with Mr Price, Edcon and Spar all reporting. Spar’s results were slightly below expectations, but the former two were better than expected.
The dealer did not believe that hawkish comments by South African Reserve Bank Governor Tito Mboweni were having much effect on the bourse as players had already been expecting a rate hike in December.
Mboweni said on Tuesday evening that if, in the view of the Monetary Policy Committee (MPC), the inflation target was being threatened by inflationary pressures, the MPC would have the courage of its conviction to do the correct thing even as South Africa entered the festive period.
On the resources index, London-listed Anglo American inched up 64c to R335,64 and BHP Billiton climbed 50c to R136.
Petrochemicals group Sasol, however, surrendered R1,99 to R253.
Gold Fields slumped 2,6% or R3,36 to R126, Harmony was down 2,12% or R2,40 at R111 and AngloGold Ashanti shed 1,16% or R3,75 to R318,50.
Impala Platinum tumbled 2,38% or R4,25 to R174,25 and AngloPlat slipped R5,54 to R829,51.
Lonmin was 3,08% or R13,15 lower at R414,40. Lonmin on Wednesday reported full-year underlying earnings per share of $3,121 for the year to end September, 163% higher than last year’s $1,185 on the back of much higher metals prices.
A final dividend of US55c per share was declared, making a total dividend for the year of US100c, up from US72c last year.
Among industrials, Swiss-listed luxury goods group Richemont rallied 1,46% or 54c to R37,65.
Cellular network operator MTN Group gained 51c to R75. It earlier traded at a record high of R75,80.
Retailer Mr Price rang up 1% or 22c to R22,20 and New Clicks climbed 5c to R11, but Edcon weakened 20c to R36,70.
Mr Price on Wednesday reported a 32% rise in headline earnings per share to 67,9c for the six months ended September from 51,6c at the interim stage last year.
Retail sales from continuing operations grew by 23% to R2,679-billion from R2,170-billion with comparable sales 12% higher.
Operating profit was up 25% to R208,7-million from a comparable R167,3-million.
The distribution per share also increased by 25% to 30,4c. This comprised an interim cash dividend of 10,4c per share and a cash distribution out of share premium of 20c per share.
Edcon reported a 20% rise in diluted headline earnings per share to 131c for the six months ended September from 109c a year ago. An interim dividend of 71c per share was declared, compared with 62c a year ago.
Spar was up 41c at R43. It had just reported fully diluted headline earnings per share of 231,2c for the year to September, from 199,3 cents last year.
A final dividend of 75c per share was declared, bringing the total dividend for the year to 123c, up 30,2% from 2005’s 94,5c per share dividend.
Following a strong run over the past few days, furniture retailer Ellerine retreated 2,26% or R1,71 to R73,79. JD Group dropped 2% or R1,62 to R79,38.
On the financial front, London-listed Old Mutual leaped 2,96% or 70c to R24,34.
But Standard Bank shed 75c to R85, FirstRand fell 9c to R19,26, Nedbank lost 45c to R124,55, while Absa was 45c in the red at R112,50. — I-Net Bridge