The JSE inched up slightly by noon on Monday, but with no real driver as markets have started to feel the slowdown effects of the holiday season.
By midday, the JSE all-share was only 0,1% in the black. Financials and banks edged up 0,33% and 0,08% respectively, and resources were up a slight 0,11%. Industrials were off 0,07%, and the gold-mining index pulled back 2,61%, while the platinum-mining index gave up 2,49%.
The rand was bid at 6,68 to the United States dollar, unchanged from when the JSE closed on Friday, while gold was quoted at $800,15 a troy ounce from $793,65/oz at the JSE’s last close.
One trader said that there was still a bit of a follow through from Anglo American and BHP Billiton’s gains last week, but another trader said that most of the corporate activity has quietened down.
Last week, Anglo American rallied on speculation that it had made a bid for mining group Xstrata, which has alloys and coal operations in South Africa.
However, new speculation reported by British newspaper the Telegraph reveals that it could be the one of the world’s top three biggest iron ore producers, Brazilian miner Companhia Vale do Rio Doce, that could be next in line to make a bid for Xstrata, which has led it to hit new record highs in London.
It reported that there was also talk that BHP Billiton could turn its attentions to Xstrata.
“I think the FTSE has helped a bit, and the interest from Anglo and Billiton is still following through,” said one local trader, but added that the market was still very quiet as it was recovering a bit.
“It is very boring with light volumes on the JSE. There is no new news as corporate activity has quietened down because of the Christmas period,” said the other trader.
Looking at stocks in the JSE’s resources sector, Anglo American was up R4,50 to R463,50, while Melbourne-based BHP Billiton collected R3,25, or 1,44%, to R229,19 and petrochemical group Sasol was unchanged at R348.
Kumba Iron Ore shot up R8,01, or 2,94%, to R280,01.
Among gold counters, AngloGold Ashanti fell R10,29, or 3,36%, to R295,70, while Goldfields lost R2,39, or 2,25%, to R104 and Harmony declined 61 cents to R71,95.
Platinum group Anglo Platinum gave up R27,50, or 2,62%, to R1 022, Impala Platinum was off R7,15, or 2,94%, to R235,90 and Lonmin was R3,75 in the red, at R450.
Elsewhere, brewer SABMiller shed 36 cents to R187,44.
In the telecommunications sector, fixed-line operator Telkom dropped R4,08, or 2,61%, to R152,52 and mobile operator MTN Group perked up 11 cents to R134. — I-Net Bridge