Gold stocks continued to lead the downside as the JSE remained in the red by noon on Tuesday. A trader noted that the weak local currency was preventing more falls, and that at current levels some buying was starting to seep into the market.
The JSE all-share index had given up 1,51%. Resources lost 1,85% and gold counters shed 2,10%. However, platinum miners edged up 0,13%.
Banks gave up 1,48%, financials were off 1,86% and industrials weakened 0,94%.
The rand was last bid at 10,48 to the dollar from 10,34 when the JSE closed on Monday. Gold was quoted at $924,30/oz a troy ounce from $940,85/oz at the JSE’s last close, and platinum was at $1 047/oz from its previous close of $1 060/oz.
“We are still down, but we are holding up despite the huge sell off in the US last night,” she said.
“There is profit taking in these gold stocks on the back of a fall in the gold price. Banks are also still down. Old Mutual and Standard Bank results are coming out this week and those will probably give some direction to the banking index as a whole.
“There is however some buying interest coming in, and the weak rand is helping us.
“Overall, it is depressing out there, every day sees a sell off and markets are finding it difficult to find some ground,” she said.
Dow Jones Newswires reports that the FTSE 100 fell and was unable to sustain the upward momentum at the start of the session. Any gains were looking fragile, said one trader, while another added that HSBC’s share price slump on Monday is still rattling the market and bank stocks in particular.
The FTSE 100 was last down 1,77%.
US stocks are expected to rise at the open on a dead cat bounce following Monday’s heavy fall, said Martin Slaney, trader at GFT.
He called the DJIA to open up 55 points and the S&P 500 up 7,2 points. “There is overall caution that this recovery may be nothing more substantial than a dead cat bounce,” he said, adding, “There’s little chance of a sustained rally ahead of Friday’s non-farm payrolls number.”
Among equity movers on the JSE, Anglo American was down R2,21, or 1,60%, to R136 and BHP Billiton weakened R2,76, or 1,77%, to R152,99.
Petrochemicals group Sasol gave up R9,03, or 3,60%, to R242,02.
Paper group Sappi shed R1,27, or 7,47%, to R15,73 and Mondi weakened 35 cents, or 1,52%, to R22,70.
ArcelorMittal lost R1, or 1,32%, to R74,90 and Highveld Steel gave up R2,75, or 3,94%, to R67, but Kumba Iron Ore was up R2,49, or 1,44%, to R175,99.
Gold miner AngloGold Ashanti lost R2,25 to R306,30, Gold Fields was down R4,05, or 3,89%, to R99,94 and Harmony softened R2,54, or 2,06%, to R120,96.
Mining and exploration group Metorex collected two cents, or 1,18%, to R1,72. The group earlier reported headline earnings per share of 48,21 cents for the six months ended December 2008 from 53,8 cents a year ago.
Revenue rose to R1,252-billion from R1,039-billion before following a 28% weakening of the rand/dollar exchange rate, while cash mining profit declined to R275,7-million from R386,8-million previously. The group said its profitability suffered during the second quarter as commodity prices decreased.
Platinum miner Lonmin lost R3,81, or 2,59%, to R143,55. In diversified miners, Exxaro was off 93 cents, or 1,39%, to R68.
Elsewhere on the JSE, SABMiller weakened R1,61, or 1,13%, to R140,93, Imperial shed R2,39, or 5,38%, to R42, Famous Brands gave up 35 cents, or 2,44%, to R14 and British American Tobacco lost R4,83, or 1,88%, to R252.
However, Bidvest added R2,35, or 2,97%, to R81,35.
Banker Standard Bank gave up R1,50, or 2,42%, to R60,50, Nedbank lost R1,31, or 1,82%, to R70,60 and FirstRand weakened 22 cents, or 1,91%, to R11,28.
Financial services group Old Mutual was off 26 cents, or 4,54%, to R5,47 and Sanlam lost 37 cents, or 2,38%, to R15,15.
Media group Caxton gave up 50 cents, or 4,76%, to R10, Naspers weakened R2,91, or 1,91%, to R149,68 and Avusa shed 70 cents, or 5%, to R13,30.
Retailer Woolies was off 36 cents, or 3%, to R11,64, Truworths weakened 78 cents, or 2,47%, to R30,81, Massmart lost R1,40, or 2%, to R68,60, JD Group was down R1,35, or 4,54%, to R28,41 and Nu Clicks shed 77 cents, or 5,31%, to R13,73.
Liberty International gave up R2,23, or 4,60%, to R46,21. Construction group Aveng collected 35 cents, or 1,36%, to R26,15 but Group Five weakened R1,25, or 4,35%, to R27,50 and Basil Read was off 15 cents, or 1,18%, to R12,55.
Packaging group Nampak gave up 15 cents, or 1,19%, to R12,50.
Vehicle tracking solutions company DigiCore Holdings weakened two cents to R3,18. It earlier reported an 11% increase in diluted headline earnings per share to 24,78 cents for the six months ended December.
Although turnover for the six months decreased by 7% to R288-million, the company managed to increase its operating profit margin by 2% to 27%, mainly due to higher gross profit percentages achieved on the Group’s annuity based income streams, which now constitute 40% of its total revenue opposed to 27% in the comparative period. Net profit after tax was up 6% to R56,7-million.
Telecommunications group MTN Group eased 50 cents to R87,50 and Telkom gave up 52 cents to R98,98. — I-Net Bridge