The JSE was marginally weaker in noon trade on Thursday, led down by Gold Fields which released disappointing results earlier in the session. On the whole, the market was directionless and order driven.
By 12:08, the all share index eased 0,09% to 25 420,290 although it touched a fresh record high of 25 493,52 in opening trade. Resources were flattish (+0,04%), with the gold mining index slipping 1,68% but the platinum mining index climbing 1,1%. Industrials dipped 0,13%, while the financial and banks indices fell 0,3% and 0,99% respectively.
The rand was bid at 7,13 per dollar from 7,14 when the JSE closed on Wednesday, while gold was quoted at $647,70 a troy ounce from $642,45/oz at the JSE’s last close.
“On the whole, the market has been pretty directionless and order driven. The Dow was up, but Eastern markets were down so we are not getting much guidance from offshore.”
He added that while PPI data released at 11.30am had been much better than expected, it hadn’t had much effect on the market even though it had supported
the view that interest rates would be left on hold in February.
“The big feature has been Gold Fields,” the dealer said. “The results were well below consensus.”
Gold Fields shares plunged 4,11% or R5,18 to R120,82 after the company reported a 5% increase headline earnings per share for the quarter to end December of 147 cents — on the back of a R263-million foreign exchange gain.
A large part of the gain relates to a foreign exchange change on the company’s $1,2-billion loan raised to purchase Barrick’s half of the South Deep gold mine during the quarter.
Core earnings, which exclude gains and losses of on foreign debt, were reported at 108 cents per share, compared to 142 cents per share previously, a drop of 24%.
AngloGold Ashanti shed 1,05% or R3,59 to R337,71 but Harmony was 1,33% or R1,31 higher at R99,81.
Junior miner Western Areas tumbled 2,64% or R1,17 to R43,07. Western Areas on Thursday reported gold production of 32 271 ounces for the quarter ended in December, compared with 32 532 ounces for the September 2006 quarter.
Cash costs for the December quarter were $649 per ounce from $624/oz in the quarter before.
Global resources group BHP Billiton eased 40 cents to R136.
BHP Billiton said in its production report for quarter ended December that it achieved half year production records in six of its products on the back of increased customer demand.
The commodities with record production numbers for the quarter and the half-year were aluminium, alumina, copper cathode, iron ore and manganese. Molybdenum achieved a half-year production record.
However, Billiton warned in its quarterly development report that shortages of both skills and equipment had and would continue to impact project costs and schedules on mines around the world.
The dealer said that Billiton had been pushed up in Australia on the production numbers. Despite this, it had initially come under pressure in London, but had since recovered.
“A lot of guys were long the stock ahead of the production numbers and there might have just been some profit-taking,” the dealer asserted.
Anglo American, however, inched up 37 cents to R342,02.
Petrochemicals group Sasol strengthened 1,04% or R2,51 to R244,50.
AngloPlat jumped 1,79% or R16,01 to R910,01 and Impala improved R1,50 to R201 after trading at a lifetime high of R202,49.
Among industrials, Swiss-listed luxury goods group Richemont retreated 18 cents to R39,62 and London-listed brewer SABMiller dipped 62 cents to R165,55.
Hospital group Netcare surrendered 1,06% or 16 cents to R14,91.
PP Cement was 1,56% or R6,60 softer at R416,50 and construction company Group Five fell 1,01% or 50 cents to R49,25.
Murray & Roberts, however, rose 1,5% or 70 cents to R47,45 while Aveng advanced 1,13% or 44 cents to a record high of R39,25.
Tongaat-Hulett leaped 2,39% or R2,70 to R115,70. It earlier traded at a lifetime high of R116,40 after it said before the opening that it had approved a R1,3-billion expansion of its sugar milling and cane growing activities at its Xinavane and Mafambisse sugar mills in Mozambique.
On the financial front, London-listed Old Mutual firmed 20 cents to R24,88.
FirstRand, however, fell 1,32% or 31 cents to R23,12, Standard Bank surrendered 75 cents to R99,25 and Absa was 1,03% or R1,39 in the red at R133,11. – I-Net Bridge