JSE up and down in see-saw session

The JSE was in the red at midday on Wednesday after vacillating between positive and negative territory during early trade as investors took profits on stocks that have recovered from last month’s losses.

The JSE’s all-share started in the red, but inched into positive territory within the first 15 minutes of trade, and by midday it had fallen back into the red.

 

By 12pm, the all-share index lost 0,25%. The platinum-mining index fell 1,03% and industrials lost 0,40%. Financials retreated 1,1% and banks shed 1,95%.
However, resources added 0,22% and the gold-mining index rose 1,54%.

The rand was bid at 7,21 to the United States dollar from 7,22 when the JSE closed on Tuesday, while gold was quoted at $679,40 a troy ounce from $679,52/oz at the JSE’s last close.

“The JSE has been all over today [Wednesday], and has had no direction. Since the 15th and 16th of last month, a lot of the shares have recovered quite nicely and I think now that people are looking to lock in profits,” said a local equities trader.

Among resource stocks, Anglo American was up R4,50, or 1,08%, to R423 while BHP Billiton gave up 70 cents to R210,30.

Exxaro fell 4,46%, or R3,48, to R74,52 and Sasol eased 25 cents to R289,75.

Anooraq gave up three cents to R23,90 and Mvela shed 20 cents to R57,30 after Tuesday’s announcement where Anglo Platinum said it has reached agreement with Anooraq and Mvela Resources on transactions that will result in the creation of two substantial, historically disadvantaged South African-managed and -controlled South African platinum group metal producers, with critical mass and significant growth potential.

Mvela Resources will purchase Anglo Platinum’s 50% interest in the Booysendal Project and 22,4% direct interest in Northam for a total consideration of R4-billion.

Anglo Platinum was up R9 to R1029 and Northam Platinum lost 2,8%, or R1,50, to R52.

Impala Platinum retreated R4,74, or 2,11%, to R219,76, but Lonmin climbed 3,24%, or R15,05, to R479,05 and Aquarius gained 3,43%, or R7,77 to R234.

Among gold miners, AngloGold Ashanti was up R4,96, or 1,7%, to R297,01 and Harmony was 3,56%, or R2,39, firmer at R69,50. Ellerines was up 40 cents at R76,30, while ABIL was unchanged from its Tuesday close of R32. Earlier, ABIL announced its firm intention to make a R10,6-billion offer for furniture group Ellerines.

The offer is based on a valuation of R85 per Ellerines share—which ABIL intends to settle by way of an issue of new ABIL ordinary shares. Based on the valuation, ABIL will offer 265 of its shares per 100 Ellerines shares.

In the telecommunications sector, fixed -line operator Telkom eased R1,82 to R182,16, and mobile network operator MTN Group edged up 92 cents to R105.

Dow Jones newswires reported on Wednesday that the sale of Telkom’s 50% in Vodacom is increasingly likely, with key questions the valuation and use of proceeds, says ING. Reports suggest Telkom could get more than R70-billion for its stake, which would clearly be positive if it pays out proceeds as dividend. More surprising is speculation MTN might buy Telkom’s fixed-line assets, and any deal is highly dependent on the position of South Africa’s government.

Among banks and financials, Standard Bank was down R2,05, or 1,9%, to R105,85, and Nedbank pulled back R2,84, or 2,03%, to R137,15.—I-Net Bridge

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