The JSE was flat by noon on Thursday weighed by weaker European markets, with a local trader noting that the market was trying to consolidate after Wednesday’s big moves and also waiting to get solid direction from US markets later.
The JSE all-share index had edged up 0,25%, but resources eased 0,12% and gold counters gave up 2,22%. The platinum index updated to register a 2,61% gain.
Banks lost 1,25% and financials weakened 0,67%, but industrials were up 1,17%.
The rand was last bid at 10,37 to the dollar from 10,37 when the JSE closed on Wednesday. Gold was quoted at $911,70/oz a troy ounce from $916,05/oz at the JSE’s last close, and platinum was at $1 049/oz from its previous close of $1 045/oz.
“We are flat at the moment. The market is taking some time to consolidate after yesterday’s big moves. It’s mixed, there is some profit taking and the rally seems weak,” he said.
“There is a lot of scepticism, and markets just can’t seem to hold on to rallies. It’s still uncertain where the market will go from here.
“However, we are still at levels where markets could rally. If we hold on convincingly, the rally can be big, but at the same time if we fail to hold, the falls could be big.
“We are eyeing the US and waiting to get direction from there,” he said.
Dow Jones Newswires reports that the FTSE 100 fell a little lower in what is likely to be a choppy morning ahead of the Bank of England’s rate announcement. Kenneth Broux, economist at Lloyds Banking Group, said a 0,5% rate cut is priced in and no member of the MPC had suggested this cut is unlikely.
Elsewhere, insurance stocks slide, and Aviva -13%, the biggest blue-chip decliner after posting a large net loss in its ’08 results. Miners are also down on disappointment that China appears to be offering no new stimulus plans.
The FTSE 100 was down 1,40%.
US stocks are expected to fall at the open, as worries over employment grow, said Martin Slaney at GFT.
He called the DJIA to open down 92 points and the S&P 500 down 10,4 points.
Back in Johannesburg, Anglo American was off R2,39, or 1,61%, to R145,84 but BHP Billiton edged up 69 cents to R165,70.
Petrochemicals group Sasol firmed R1,40 to R260,40.
Paper group Sappi collected R1,17, or 8,60%, to R14,77 and rival Mondi added 61 cents, or 2,65%, to R23,61.
ArcelorMittal firmed R1,94, or 2,67%, to R74,64 and Kumba Iron Ore added R2,50, or 1,47%, to R173.
Among gold miners, AngloGold Ashanti gave up R9,94, or 3,24%, to R297,06, Gold Fields eased 50 cents to R103,10 and Harmony weakened R3,50, or 2,97%, to R114,50.
Platinum miner Anglo Platinum was up R15,95, or 3,94%, to R420,95, Impala Platinum added R3,61, or 2,71%, to R136,61 and Lonmin rose R2,74, or 1,72%, to R162,19.
In diversified miners, African Rainbow was up R2,39, or 2,19%, to R111,39 but Exxaro lost R1,10, or 1,64%, to R66.
Among industrials, brewer SABMiller added R4,95, or 3,58%, to R143,25, Remgro gained R1,01, or 1,51%, to R67,71, Bidvest collected R2,46, or 3,08%, to R82,46, Tiger Brands firmed R1,47, or 1,13%, to R131,47 and British American Tobacco strengthened R10, or 4,20%, to R248.
However, Barloworld was down 44 cents, or 1,42%, to R30,56.
Banker Standard Bank was up 85 cents, or 1,41%, to R61. It earlier reported diluted headline earnings per share of 968,1 cents for the year ended December 2008 — a decline of 1% from 973 cents a year ago.
The group’s policy of a distribution cover ratio of 2,5 times has not changed. However, given the marginal reduction in headline earnings per share, the board has decided to maintain the group’s total distribution per share at the same level as the prior year, resulting in a distribution cover ratio of 2,4 times for 2008.
In addition, the board has declared a scrip distribution with a cash alternative. It was considered important to utilise a scrip distribution to incrementally raise capital given that asset growth is continuing and alternate sources of capital are currently limited.
Nedbank lost R3,35, or 4,60%, to R69,55, Absa was off R1,92, or 2,27%, to R82,58 and FirstRand gave up 46 cents, or 3,97%, to R11,14.
Financial services group Old Mutual weakened 37 cents, or 6,64%, to R5,20 and Investec lost 38 cents, or 1,32%, to R28,42.
Sanlam firmed 48 cents, or 3,26%, to R15,20. The short-term insurer earlier reported a 40% decline in diluted headline earnings per share to 132,2 cents for the year ended December 2008 from 220,8 cents a year ago. Normalised HEPS were down 59% to 93,9 cents from 228,7 cents before.
The group said new business volumes were down 2% to R100-billion, while the value of new covered business was up 23% to R698-million. The new covered business margin was 2,68%, up from 2,37% before. The group reported net fund inflows of R9,1-billion.
The dividend per share was up 5% at 98 cents per share.
Sugar group Illovo was up 40 cents, or 1,60%, to R25,40.
Retailer Woolies was off 27 cents, or 2,29%, to R11,50 and Lewis weakened 38 cents, or 1,09%, to R34,63.
However, Pick n Pay added 34 cents, or 1,13%, to R30,42, JD Group added 56 cents, or 2,05%, to R27,88 and Steinhoff was up 23 cents, or 2,46%, to R9,57.
Liberty International added 64 cents, or 1,43%, to R45,49.
Construction group Murray & Roberts weakened 41 cents, or 1,06%, to R38,09 and Basil Read lost 25 cents, or 2,13%, to R11,50.
Cement manufacturer Pretoria Portland Cement was down 45 cents, or 1,51%, to R29,30.
Telecommunications group MTN Group was unchanged at R87 and Telkom put on 78 cents to R99,47. — I-Net Bridge