The JSE was flat at midday Wednesday with further losses capped by a stellar performance by the world’s fourth-largest miner, Gold Fields on media reports that an America financier might bid for it.
At noon, the all-share index was flat (+0,02%) although the gold mining index soared 4,32%. Resources gained 0,43% but the platinum mining index was off 0,04%. Industrials fell 0,25%, financials were down 0,35% and banks gave up 0,27%.
The rand was bid at 7,13 per dollar, unchanged from the JSE when it closed on Tuesday, while gold was quoted at $679,33 a troy ounce from $679,05/oz at the JSE’s last close.
“We are pretty weak, but a report that Gold Fields might receive a buyout offer from an American financier Edward Pastorini has got the market charged up,” a Johannesburg-based dealer said.
Gold Fields has reportedly said it has not been approached. Gold Fields, which is the fourth largest gold producer, has a market capitalisation of about R95-billion.
Shares at the company surged as much as 10% a while ago before settling at 7,52%, or R10,32, to R147,52.
The dealer added that news of both Johncom, which unveiled its strategic plans just before the opening, and Gold Fields, came on the back of jitters ahead of Thursday’s interest rate decision.
Other gold counters, AngloGold Ashanti climbed 2,05%, or R6,80, to R338,80 and Harmony was up 1,87%, or 2,13%, or R116,01.
Also bucking the weaker tone on the local bourse was media and entertainment group Johncom, which gained 2,20%, or R2, to R93.
It earlier touched a fresh high of 97 rand after it announced its plans, including its Black Economic Empowerment (BEE) ownership transaction.
Johncom plans to separate its businesses into two listed entities by the formation of a new wholly-owned subsidiary that will acquire and hold 100% of all Johncom’s directly-held operating media and entertainment assets — referred to as OpCo.
OpCo will then be unbundled to Johncom’s shareholders and simultaneously listed on the JSE.
Petrochemical group Sasol slipped 40 cents to R238,10. The company announced that it is to proceed with construction of a second Methyl Isobutyl Ketone (MIBK) production plant in Sasolburg.
Global demand for MIBK is about 350,000 tons per year.
Information Technology group Datatec fell 30 cents to R36,20. Its shares surged more than 6% earlier after it announced that it has conditionally agreed to acquire United Kingdom-based European value added distributor of voice, data and converged communications solutions Crane Telecommunications Group for a maximum consideration of £20,7-million.
On the resources index, London-listed resources giant Anglo American inched up 51 cents to R393,50 but BHP Billiton was off 70 cents to R166,55.
London-listed global brewer SABMiller slid 90 cents to R157,20, Illovo was down 1,17%, or 23 cents, to R19,37 and Remgro pulled back 1,37%, or R2,55, to R184,25.
Banking group Standard Bank slipped 50 cents to R107,60, Nedbank gave up 30 cents to R146,20 and Absa was R1,05 in the red at R138,95. – I-Net Bridge