South African stocks were slightly lower at midday on Wednesday, but off the worst levels as commodity stocks posted modest gains on higher prices.
At 11.58am, the JSE’s all-share index was down 0,13%. Resources were up 0,23%, the gold mining index was fairly flat at +0,03%, but the platinum mining index lost 0,47%.
Banks shed 1,65%, financials weakened 1,27% and industrials were 0,21% in the red.
The rand was bid at 7,65 to the US dollar from 7,63 when the JSE closed on Tuesday, while gold was quoted at $924,05 a troy ounce from $918,15/oz at the JSE’s last close.
Traders said that although global inflation has been an underlying bearish influence for a while, the rising oil price was weighing on sentiment.
“There is some strength coming through from miners on the back of higher commodity prices, but there’s an underlying negative sentiment that restricts further gains,” one trader said.
On the resource index, Anglo American recovered 100 cents to R528 and BHP Billiton was up 152 cents to R310,60.
Synthetic fuels maker Sasol was up 350 cents to R506,50, after earlier setting a fresh record trading high of R510,02 as the oil price nudged higher.
Among gold counters, AngloGold Ashanti was down 129 cents at R302,50, but Harmony added 26 cents to R96,76 and Gold Fields perked up 38 cents to R107,38.
Platinum miner Anglo Platinum was off 500 cents at R1 425 and Impala Platinum fell 230 cents at R352,12. Platinum was last trading 2,20% firmer at $2 182,50/oz.
Highveld Steel and Vanadium was among the bourse’s top gainers. South Africa’s second-largest steel producer said it would return about R1,8-billion to shareholders through a special dividend payout.
Shares in the company rallied 899 cents, or 5,11%, to R185. The counter earlier set a record trading high of R185,90.
Elsewhere, sugar producer Illovo Sugar added 42 cents, or 1,35%, to R31,42. It earlier reported diluted headline earnings per share of 170,5 cents for the year ended March compared with 147,7 cents a year ago.
A final dividend of 52,5 cents was declared, up from 45 cents a year ago. This dividend, together with the interim dividend of 33 cents, brings the total distribution for the year to 85,5 cents, up from 75 cents a year ago.
Furniture maker Steinhoff International fell 88 cents, or 4,49%, to R18,71. It said earlier that the proposed sale of a 20% equity interest in Steinhoff Africa Holdings to a consortium of black economic empowerment investors would no longer proceed.
Among financials and banks, Old Mutual was down 45 cents, or 2,53%, to R17,35, Standard Bank shed 128 cents, or 1,45%, to R86,72, Nedbank tumbled 215 cents, or 2,01%, to R104,64 and FirstRand eased 35 cents, or 2,28%, to R15.
“The outlook for banks and financials locally and internationally is very gloomy due to inflations concerns,” one trader said.
Among industrials, brewer SABMiller lost 351 cents, or 1,82%, to R188,99 but Richemont was up 42 cents to R48,92. – I-Net Bridge