The JSE was weaker at midday on Monday, erasing earlier gains following a similar trend in European markets on early indications that Wall Street was likely to open lower.
At noon, the all-share index was down 0,69%. Resources fell 1,75% while the gold- and platinum-mining indices gave up 0,46% and 1,81% respectively. Banks lost 0,23%, financials shed 0,60% but industrials added 0,50%.
The rand was bid at 6,71 to the US dollar, unchanged from when the JSE closed on Friday, while gold was quoted at $788,70 a troy ounce from $791,40/oz at the JSE’s last close.
“We are pulling back in line with European markets because Wall Street futures are pointing to a lower open in New York later on,” one trader said.
He added that miners were pulling back on a series of factors, including lower copper prices, platinum supply crunch concerns and uncertainty regarding merger and acquisitions talks surrounding the heavyweights.
“Copper, nickel and zinc prices are down. Resources are likely to be following that and other factors,” the trader said.
Resource group Anglo American slumped 3,13%, or R13,49, to R417,50 and BHP Billiton, which seeks a tie-up with Rio Tinto, lost 1,70%, or R3,75, to R216,25.
Synthetics fuels maker Sasol lifted R2,10 to R340,10.
Among gold counters, AngloGold Ashanti added R1,77 to R300,77, but Goldfields pulled back 1,15%, or R1,35, to R116,05.
Platinum miner Anglo Platinum gained R6 to R947, but Impala Platinum lost 3,41%, or R7,98, to R226,02 and Lonmin fell 3,04%, or R13, to R415.
Swiss-listed luxury goods group Richemont was the blue chip’s top gainer as investors cheered news that the company may split its luxury operations from its other interests, which include its interest in tobacco maker British American Tobacco (BAT).
Shares in Richemont rose nearly 7% shortly after the announcement, but by midday it had given up some of the gains to trade at R46,28 — 5,90%, or R2,58, stronger.
Remgro, which also plans to spin off its 10,6% interest in BAT, rallied 4,22%, or R7,85, to R193,65.
However, brewer SABMiller fell 1,08%, or R1,99, to R182,50. It plans to make a €816-million, or €48,25 per share, offer for 100% of the outstanding shares of Dutch brewer Grolsch. The offer represents an 84,3% premium to the Dutch brewer’s average closing price over the last month.
Diversified industrial group Barloworld was R1 weaker at R125. It earlier reported headline earnings per share (HEPS) from continuing operations of 811,7 cents for the year ended September from 719,5 cents. On a diluted basis HEPS rose to 796,9 cents from 705,7 cents.
Hospital management group Network Healthcare Holdings tumbled 2,34%, or 30 cents, to R12,50. It earlier reported a 68,9% increase in diluted headline earnings per share from 43,7 cents to 73,8 cents for the 12 months ended September. Adjusted headline earnings per share increased by 27% from 48,8 cents to 61,8 cents.
In the telecommunications sector, fixed-line operator Telkom shed 49 cents to R164,50. It earlier reported a 15,1% decline in headline earnings per share for the six months ended September 2007 to 742,30 cents, from 874,70 cents in the same period a year ago. — I-Net Bridge