The JSE retained its softer tone at noon on Thursday on profit-taking after Wednesday’s record run, while weaker overseas markets added to selling pressures.
At noon, the all-share index was down 0,55%. Resources fell 0,77%, the gold and platinum mining indices gave up 0,03% and 0,83% respectively.
Industrials shed 0,48%, financials weakened 0,24% and banks eased 0,23%.
The rand was bid at 7,07 per dollar from 7,03 when the JSE closed on Wednesday, while gold was quoted at $661,50 a troy ounce from $664,05/oz at the JSE’s last close.
“It’s nothing to worry about. It’s profit taking-induced selling after yesterday’s rally,” a trader said.
He added that weaker overseas markets, coupled with former US Federal Reserve chairperson’s Alan Greenspan’s bearish comments about the Chinese economy,
added to selling pressures.
On the resources index, Anglo American was down 1,16%, or R4,88, to R412,07 and BHP Billiton fell R1,39 to R169,30.
Gold miner Anglogold Ashanti was off 55 cents at R304 while Gold Fields was up 75 cents to R124,75.
Life insurer Old Mutual was off five cents at R25,18 after releasing first quarter earnings that were in line with expectations. It earlier said it had a positive start to its 2007 financial year, with adjusted operating profit up 5% in the first quarter ended in March to £398-million.
Luxury goods group Richemont was down 37 cents to R43,13. Just before the opening, the group reported a 12% increase in sales to €4,827-billion for the year ended in March.
Diluted earnings per unit were up 19% to €2,331 from €1,096 previously. The ordinary dividend was increased by 8% to €0,65 and in addition, a special dividend of €0,60 was declared for a total of €1,25 per unit — an increase of 14%.
Furniture group Steinhoff shed 1,23%, or 30 cents, to R24,10 and banking group Absa eased 35 cents to R142,65. Steinhoff said earlier that an Absa Capital-led consortium, has bought Steinhoff SA’s furniture division Furnco for R1,3-billion.
Construction stocks bucked the weaker tone on the local bourse with Aveng up 1,78%, or 95 cents, to R54,20. Group 5 soared 4,36%, or R2,54, to R60,74 and Murray & Roberts Holdings climbed 3,16%, or R2,28, to R74,50.
Fixed line operator Telkom fell 1,65%, or R2,80, to R167,20. Brokerage house Deutsche Securities has upgraded its price target for telephone company by 18% to R200.
Elsewhere, consumer brands group Tiger Brands was up 1,04%, or R2, to R195 ahead of its year-end results later in the day. – I-Net Bridge