The JSE remained in the black at midday on Wednesday thanks to firm resources stocks, but banks and financials were under a bit of pressure.
By 11.54am the JSE’s broader all-share index was up 0,34%. Resources added 1,01%, but the platinum-mining index, after having being stronger earlier, was now off 0,52% and the gold-mining index was down 1,14%.
Financials shed 0,89%, banks were off 1,35%, while industrials were unchanged.
The rand was bid at 7,62 to the dollar, unchanged from when the JSE closed on Tuesday, while gold was quoted at $916,23 a troy ounce from $918,90/oz at the JSE’s last close.
A local trader said that it was a “tale of two markets”. On the one hand resources were strong, with the likes of Sasol, BHP Billiton and Anglo on the firm side, while on the other hand local consumer-related shares, such as banks and some retailers, were weaker following poor inflation data.
Data released by Statistics South Africa showed the increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank for its inflation target, was up 10,1% year-on-year (y/y) in March from 9,4% y/y in February.
This is the twelfth month running that CPIX has been above the 6% upper target limit.
The trader said that while inflation remains the focus, there is still the possibility that rates might increase again. “The next few months are going to be tricky for the equities market — it’s not going to run away at the moment,” he said.
Among resources, Anglo American strengthened 1,76%, or R9,24, to R535,24 and BHP Billiton climbed 1,65%, or R4,70, to R289,70. Earlier it reported that production increased for 12 commodities in the nine months ended March, reflecting its strong track record of consistent growth in its deep inventory of projects.
Releasing its production report for the period, the group said first product was delivered from eight projects into commodity markets that remain strong.
Among platinum miners, Lonmin was up 1,97%, or R9,90 to R512,40. Anglo Platinum was up R2 to R1 318, but Impala was down 1,07%, or R3,50, to R323.
Among gold counters, AngloGold Ashanti was off 354 cents, or 1,25%, to R280,56 and Gold Fields fell 164 cents, or 1,48%, to R109,06.
Also in the news, Swiss-based luxury goods group Richemont reported total sales for the year ended March of €5,3-billion, up from €4,8-billion a year ago. This represented a rise of 16% at constant exchange rates and 10% at actual exchange rates.
Richemont’s share price was up 81 cents, or 1,85%, to R44,65.
Among retailers, Truworths was off 45 cents, or 1,69%, to R26,25 while Woolies gave up 23 cents, or 1,87%, to R12,04.
Among banks, Absa was off 175 cents, or 1,72%, to R99,70, Standard Bank shed 150 cents, or 1,65%, to R89,50 and Nedbank gave up 50 cents to R113,50. — I-Net Bridge