The JSE continues to hover in weaker territory as credit concerns resurface, leading world markets and the local bourse lower.
At midday, the JSE all-share was off 1,28%. Resources lost 1,13%, the gold-mining index was 0,56% lower and the platinum-mining index fell 1,82%. Financials shed 1,44% and banks pulled back 1,54%, while industrials were down 1,35%.
The rand was bid at 7,40 to the United States dollar from 7,28 when the JSE closed on Tuesday, while gold was quoted at $665,90 a troy ounce from $668,90/oz at the JSE’s last close.
“The JSE is taking its cue from world markets after credit concerns that seemed to have gone and have now resurfaced. It fell further this morning [Wednesday] and has been hovering around the 300 points below mark and is waiting for the US to open later today to give it direction,” said a local trader.
Anglo American eased R1 to R401 and BHP Billiton gave up 1,60%, or R3,04, to R186,40 rand.
Sasol shed R6,46, or 2,30%, to R274,04.
Among gold miners, AngloGold Ashanti slumped R2,13 to R266,54. Anglo Platinum weakened R12,81, or 1,39%, to R906,19 and Impala Platinum fell 2,30%, or R4,35, to R185.
Support Services Group Bidvest shed 2,20%, or R2,94, to R130,46. It said on Wednesday that it expects its headline earnings per share for the year ended June to be 20% to 22% higher than those of the prior year.
Among retailers, Massmart eased 50 cents to R81,50, while Woolies fell 2,01%, or 39 cents, to R19,01.
Retail group Massmart advised on Wednesday that, after adjusting for the first-time accounting impact of Thuthukani, the group’s staff BEE scheme, implemented in October 2006, adjusted headline earnings per share for the year ended June 30 2007 are anticipated to be between 34% and 38% higher than that of the prior year.
Also in retail, Italtile was R5,25, or 1,91%, lower at R269,75.
In telecommunications, Telkom retreated R4,15, or 2,43%, to R166,80 and MTN Group slipped 3,03%, or R3,02, to R96,78.
Banking group First Rand lost 1,34%, or 30 cents, to R22,10 and Standard Bank dipped 1,87% or R1,87 to R97,98.
Standard Bank lifted headline earnings per share by 25,8% to 482,9 cents and achieved a return on equity of 26,4% for the six months ended June.
On a normalised basis headline earnings per share grew 25,7% to 451,1 cents and the return on equity was 24,4%. The group declared a distribution of 181 cents per share for the six-month period compared with 144 cents for the previous comparable half-year. — I-Net Bridge