South African stocks remained modestly lower at noon on Monday in a light-volume session as most traders remained on the sidelines due to a public holiday in the United Kingdom.
Faltering metal prices due to the stronger dollar put commodity stocks under pressure, traders said.
By noon, the all-share index was down 0,29%, dragged down by a 1,66% drop in platinum shares and a 1,24% decline in gold shares. Resources fell
0.83%.
Banks, however, were up 1,16%, financials gained 0,55% and industrials were flat.
The rand was bid at 7,72 to the US dollar from 7,64 when the JSE closed on Friday, while gold was quoted at $824,88 a troy ounce from $824,85/oz
at the JSE’s last close. Platinum was last at $1 413,50, down $12/oz from its overnight close.
“We are expecting a generally slower day today, with London out for a public holiday,” said a local trader.
Another trader added that gains were restricted to banks and financials, while the mining sector suffered on the back of uncertainty about the price of commodities.
“The dollar is gaining and we’ve seen gold coming off as a result. But the guys are hoping for rebound in demand for gold ahead of the festive season,” the trader said.
Dow Jones Newswires reports that US stock futures drifted lower on Monday to open a week full of economic data, including Monday’s release of existing home sales.
S&P 500 futures slipped 4,5 points to 1 287,70 and Nasdaq 100 futures fell 5,25 points to 1 924,25. Dow industrial futures fell 24 points.
On the JSE, resource giant Anglo American was off 50 cents at R408, and BHP Billiton shed R1,01 to R239,89.
Synthetic fuels maker Sasol shed R8,79, or 2,10%, to R410,20.
Gold miner AngloGold Ashanti was R2,60, or 1,26% weaker, at R204 and Gold Fields was off R1,60, or 2,34%, at R69,90.
Among platinum miners, Anglo Platinum eased R10,80, or 1,17%, to R910,20 and Impala Platinum lost R5, or 2,27%, to R215.
Among industrials, brewer SABMiller was up R1 at R164 but Richemont weakened 40 cents to R43,56.
Tiger Brands was R29,12, or 18,37%, weaker at R129,38 due to the unbundling of Adcock Ingram.
On Monday, approximately 172,6-million Adcock Ingram ordinary shares were listed on the main board of the JSE in the “pharmaceuticals” sector. Adcock Ingram’s share price opened at R35 and was last at R33,50.
Banking group Standard Bank rose R1,52, or 1,79%, to R86,52 and FirstRand gained 27 cents, or 1,79%, to R15,37. Investec, which also trades in London, also posted decent gains. Investec was up R1,33, or 2,56%, to R53,34 and Investec added 74 cents, or 1,42%, to R52,99. – I-Net Bridge