The JSE was in negative territory in noon trade as players took profits ahead of the Easter weekend. Dealers said that the Bank of England’s interest rate decision later in the day and the release of United States non-farm payrolls numbers on Friday were also making for a nervous market.
By 11.58am, the all-share and all-share industrial indices were off 0,45% and 0,34% respectively. Resources retreated 0,64%, the gold mining index was down 0,7% while the platinum mining index was 1,3% softer. Financials fell 0,3% and the banks index was 0,93% in the red.
The rand was bid at 7,15 per dollar from 7,17 when the JSE closed on Wednesday, while gold was quoted at $672,85 a troy ounce from $674,10/oz at the JSE’s last close.
“We’re understandably,” a dealer said. “We’ve got a long weekend. In America, we’ve got non-farm payrolls numbers tomorrow [Friday] and against that markets are very twitchy in case it’s a bad number. We’ve also got the Bank of England rates decision today [Thursday], which is also 50-50. Against that, the market is very
nervous and just holding back a bit.”
He added that the market had had a good run and some profit-taking was just coming in.
The dealer noted that the market had brushed aside Thursday’s news that Iran was releasing 15 captured British sailors.
“Oil has started to tick up again. Gold is very strong, which seems to be more on technical fund buying than anything. One would have thought that with the easing of tensions, gold would have come down. But equity prices never really responded. I think it is just one of those weeks that the market is taking a breather.”
On the resources index, London-listed Anglo American was off R2,50 at R383,50 and BHP Billiton dipped 20 cents to R162. Petrochemicals group Sasol was R1,90 lower at R233,10.
AngloPlat weakened 1,97% or R23 to R1 147 and Impala lost R1,90 to R226,50.
AngloGold Ashanti shed R1,51% or R5 to R327.
London-listed brewer SABMiller was down R1,50 at R158 and Swiss-listed luxury goods group Richemont eased two cents to R41,10.
Hospital group Netcare weakened 1,12% or 16 cents to R14,14.
Telkom, however, climbed R1 to R168.
Retailer Shoprite was up just six cents at R29,05, it earlier traded as high as R30.
What was important, the dealer noted, was that Shoprite shares were still trading above the R28 Brait was offering shareholders.
“The market still obviously believes there will be a better bid. This follows Absa capital saying their opinion that the offer was fair and reasonable was outdated,” he explained.
On the financial front, London-listed Old Mutual was up 1,31% or 31 cents to R23,90 and Liberty Group gained 1,02% or 84 cents to R83,35. Sanlam, however, slipped 20 cents to R20,60.
Standard Bank gave up 1,63% or R1,79 to R107,71, FirstRand fell 11 cents to R24,49 and Absa was R1,24 in the red at R139,45.
Nedbank, however, was R1 better at R144,80. – I-Net Bridge