The JSE was taking a breather on Tuesday after its recent strong rally, which took the bourse to successive record highs, as some profit-taking set in. However, earlier the all-share index hit yet another fresh record high when it touched 33 263,148.
At noon, the JSE’s all-share index was down 0,88%, led by resources, which were off 1,87%, and platinum miners, down 1,82%. The gold-mining index was unchanged. Financials shed 0,25% and banks were down 0,23%. However, industrials were up 0,48%.
The rand was bid at 7,60 to the dollar from 7,48 when the JSE closed on Monday, while gold was quoted at $905,80 a troy ounce from $905,75/oz at the JSE’s last close.
A local trader said that after the recent strong run, the pullback was not unexpected.
“Resources was the main sector that was pushing us up, and that is looking a bit stretched in the short term. We were bound to see a bit of profit-taking, although the platinum price is higher and the rand is weaker today [Tuesday],” he said.
“The Anglos, Billitons and platinum counters have had big runs, so the pullback is not surprising,” he added.
He added that overseas markets were also down on Tuesday morning, mostly due to pullbacks in the same sectors. The Nikkei closed 110 points down and in London the FTSE100 was last off 73,6 points.
“But looking at the bigger picture, the trend still looks powerful. It will depend on overseas sentiment, though,” the trader added.
Elsewhere there are still some pockets of strength, notably in telecoms and construction shares.
MTN was up a further 532 cents, or 3,38%, at R162,54, as the stock continued to be buoyed by potential corporate action. Telkom advanced 50 cents to R130.
Construction group Aveng was up 250 cents, or almost 4%, at R65,50, after it earlier reported that it anticipates headline earnings and earnings per share for the year ending June 2008 to exceed that of the previous year by between 40% and 50%. The group’s two-year contracting order book grew 32% to R29-billion as at end April 2008, it said.
Basil Read was up 70 cents, or 2,5%, at R28,50, while Group Five advanced 64 cents, or 1,2% to R53,80.
Among resources, Anglo American was off R10,48, or 1,95%, at R527 and BHP Billiton was down R11,07, or 3,47%, at R307,50.
However, synthetic fuels producer Sasol collected R2 to R496.
Among gold counters, AngloGold Ashanti was up 148 cents to R296,98 and Gold Fields added 33 cents to R107,13. However, Harmony was down 144 cents, or 1,47%, to R96,55.
Platinum miner Anglo Platinum shed R15,95, or 1,09%, to R1 444,05 and Impala Platinum inched down 849 cents, or 2,37%, to R349,51.
Among industrials, SABMiller was up 362 cents, or 1,93%, to R190,92, but Richemont shed 49 cents to R48,40 and Barloworld eased 394 cents, or 3,7%, to R102,55.
Consumer group Tiger Brands was up 275 cents, or 1,76%, at R159. Late on Monday it reported a 15% increase in headline earnings per share to 756,6 cents for the six-month period ended March. An interim dividend of 15% was declared, up 15% on the same period last year.
Among financials and banks, Old Mutual was up one cent to R17,98, Absa was 101 cents, or 1,1%, lower at R90,50 and Nedbank shed 90 cents to R107,60.
IT stock UCS was down 9%, or 30 cents, to 300 cents. Earlier it reported a 5,9% decline in diluted headline earnings per share to 12,8 cents for the six months ended March 2008 from 13,6 cents a year ago. An interim dividend of four cents per share was declared. — I-Net Bridge