The JSE was lower at noon trade on Tuesday following a weaker tone on European markets while other players took profits after the market’s strong moves in recent days.
At noon, the all-share index was down 0,71%. Resources fell 0,81% while gold- and platinum-mining indices gave up 0,92% and 1,87% respectively. Financials shed 0,58%, banks lost 0,67% and industrials weakened 0,66%.
The rand was bid at 7,09 per dollar, from 7,05 when the JSE closed on Monday, while gold was quoted at $689,25 a troy ounce, unchanged from when the JSE’s previous close.
“We are tracking weaknesses seen in European markets,” a Johannesburg-based dealer said.
He added that as the market was trading at very high levels, some players simply removed money off the table.
“But we expect the market to pick up soon after JP Morgan raised its earnings targets for Anglo American,” the dealer said.
Meanwhile, Anglo American announced earlier that it has entered into an agreement in principle whereby a wholly-owned Luxembourg subsidiary of Anglo American would agree to purchase 100% of the shares of Centennial Asset Participações Minas-Rio SA, and subscribe for additional shares of MMX Minas-Rio Mineração e LogÃstica Ltda.
The transaction will result in Anglo American owning a consolidated 49% ownership interest in MMX Minas-Rio.
However, Anglo American’s share price dipped 1,04%, or R4,02, to R382.
BHP Billiton was off three cents at R162,30. Just before the local bourse opened, the company said it had another strong quarter of production, with record levels for key commodities.
Releasing its production and exploration report for the nine months ended March on Tuesday, the group said it has had a record year to date in the production of natural gas, alumina, aluminium, copper, nickel, iron ore and manganese ore, underpinned by strong customer demand.
Petrochemicals group Sasol edged up 20 cents to R245,50.
Gold miner AngloGold Ashanti pulled back 1,84%, or R6,15, to R237,70 and Gold Fields lost 80 cents to R132,25.
Platinum producer Anglo Platinum fell 1,83%, or R22,99, to R1Â 236,01 and Impala Platinum was down 1,79%, or R4,50, to R246,50.
Luxury goods maker Richemont tumbled 2,72%, or R1,18, to R42,25. It reported strong sales growth in the year ended March, as the final quarter saw a continuation of the strong growth in sales seen during the first nine months.
Overall sales for the year grew by 16% to â,¬4,827-billion at constant exchange rates. The underlying growth was offset by the weakness of the dollar and yen, and sales at actual rates grew by 12% over the full year, the group said.
London-listed global brewer SABMiller weakened 83 cents to R163,51.
Groceries retailer Pick ‘n Pay slumped 2,50%, or R87, to R33,93. It earlier reported an 11% increase in diluted headline earnings per share (HEPS) to 160,79 cents for the year ended February from 144,92 cents a year ago — an 11% increase. HEPS before the deferred tax reversal was up 18% at 180,55 cents.
A dividend of 107,25 cents per share was declared.
Elsewhere, Sanlam Banking group Standard Bank was R1 higher at R111,50 and Asba shed 15 cents to R148,15. It said on Monday that a successful tie-up of its major shareholder, Barclays and Dutch bank ABN Amro, would be a boon for it, as it would boost the bank’s global reach, Business Day reported. — I-Net Bridge