South African stocks were mixed with a weaker bias at noon on Thursday with resources weighing heavily on softer commodity prices, while the a weaker rand boosted export-oriented stocks, traders said.
At midday, the all share index was off 0,47%, weighed by a 1,39% fall in resources. However, the gold mining index inched up 0,18% and the platinum mining index was flat (+0,06%).
Banks recovered 0,98%, financials collected 0,83% and industrials gained 0,43%.
The rand was bid at 7,80 to the US dollar from 7,76 when the JSE closed on Wednesday, while gold was quoted at $869,45 a troy ounce from $882,35/oz at the JSE’s last close.
“We saw a bit of a turnaround in Europe but it’s not convincing. Commodity prices are not helping either, but the rand is helping a few exporters around here,” one trader said.
The trader added that strength seen among banks and financials was purely based on “short covering” because the outlook for these stocks was still gloomy.
On the resource index, Anglo American tumbled R11,46, or 2,23%, to R503,04 and BHP Billiton sank R8,91, or 3,09%, to R279,81.
Sasol added R1,85 to R457.
Gold miner AngloGold Ashanti was down 90 cents to R268, Gold Fields was up 30 cents to R95 and Harmony added R1,28, or 1,43%, to R90,73.
Among platinum miners Anglo Platinum was up R1 to R1 315 and Impala Platinum inched up 11 cents to R318,11.
“South African export prices of gold and platinum for instance are holding up better, but it’s unlikely investors are going to differentiate within the commodity spectrum,” RMB analysts said in a note.
Elsewhere, Swiss-based luxury goods group Richemont was up 54 cents, or 1,12%, at R48,63 and brewer SABMiller gained R1,59 to R201,54.
Among banks and financials, Standard Bank was off 20 cents to R83,80 but Nedbank climbed R1,65, or 1,69%, to R99,15, Absa picked up R2,10, or 2,42%, to R88,80 and FirstRand recovered 28 cents, or 1,89%, to R15,11.
Dual-listed specialist banking group Investec Limited rallied R1,20, or 2,34%, to R52,50 and Investec was up R1,01, or 2,01%, to R51,20. – I-Net Bridge