The JSE was weaker in quiet trade at midday, weighed down by a firmer rand, lower metal prices and what was described as a disappointing production report from Anglo American.
South African markets were closed on Monday for a holiday and are also closed on Thursday and Friday this week, with many players away for the two days in between.
At noon, the JSE’s broader all-share index was down 0,64%, with resources off 1,60% and the gold mining index 2,79% softer. However, the platinum mining index was 0,82% higher.
Banks were up 1,05%, financials collected 0,34% and industrials collected 0,31%.
The rand was bid at 7,52 to the US dollar, from 7,60 when the JSE closed on Friday, while gold was quoted at $885,45 a troy ounce from $891,58/oz at the JSE’s last close.
“There are a host of factors that have been weighing on the market this morning. One of them is the firmer rand. But US futures are also weaker and metal prices have been easing a bit. The Anglo American production report was also seen as a bit disappointing, and with Anglo being such a big part of the index, it is dragging the market lower,” a local equities trader said.
“But the market is also experiencing a very quiet day,” she added.
Anglo American was down 4,22%, or R21,51 to R488,50 rand, while BHP Billiton was off 1,85%, or 516 cents, to R274,50.
Earlier Anglo reported production increases for some of its commodities in the quarter ended March, but production of Platinum Group Metals (PGMs) and coal was adversely affected by power supply constraints in South Africa and the weather in South Africa and Australia.
Releasing its interim management statement for the quarter ended March, the group said it achieved production increases in copper, zinc, iron ore, manganese ore, and metallurgical coal versus prior year.
Synthetic fuels maker Sasol was up 2,47%, or R10,63, to R440,64.
Kumba Iron Ore was up 131 cents to R321,21. Earlier it reported a 7,2% increase in total iron ore production in the first quarter to 8,19-million metric tonnes compared with a year ago.
This was due mainly to the additional production delivered by the Sishen Expansion Project jig plant and stable performance from DMS plant at Sishen Mine and Thabazimbi Mine, it said.
The group said the strong quarterly production was underpinned by strong demand.
Among gold counters, AngloGold Ashanti tumbled 4,06%, or R11,04, to R261 and Gold Fields was 200 cents softer at R103.
Harmony (HAR) shed 211 cents to R88,49.
Among platinum miners, Anglo Platinum was down 1,95%, or R24,49, to R1 230,51 but Impala Platinum advanced 2,78%, or R8,60 to R319.
Earlier Anglo Platinum said its platinum production for the quarter ended March was down 19% to R517 500 ounces compared with 638 100 ounces in the same quarter a year ago. Its production forecast for 2008 remains 2,4-million ounces of refined platinum, it said.
Aquarius Platinum said on Tuesday that it has completed the repurchase of Impala Platinum Holdings’ stakes in both Aquarius Platinum and Aquarius Platinum South Africa.
Aquarius has repurchased the 21,426-million common shares, or approximately 8,4% of Aquarius’ issued share capital, currently held by Implats for £6,71 ($13,34) per share, representing a total consideration of £143,8-million ($285-million).
These shares have now been cancelled.
Aquarius was last trading at a 4,86% or R5,33 premium at R115,01.
Among industrials, Barloworld was up 75 cents, or 0,68%, to R110,75, but brewer SABMiller was down 2,38%, or 430 cents, at R176,70.
Among banking stocks, Nedbank collected 180 cents to R111,80, Absa was up 29 cents to R95,80 and Standard collected 131 cents, or 1,51%, to R87,90. – I-Net Bridge