Resources and banks led the downside as the JSE sank into the red by noon on Thursday, moving in line with frail European markets as participants continued to take profits and eye the US for further direction.
By noon, the JSE all-share index was down 1,12% and resources weakened 2,19%. However, platinum miners edged up 0,22% and gold counters collected 0,70%.
Banks gave up 1,63% and financials lost 1,14%, but industrials edged up 0,16%.
The rand was last bid at 10,18 to the dollar from 10,11 when the JSE closed on Wednesday. Gold was quoted at $911,40/oz a troy ounce from $898,75/oz at the JSE’s last close, and platinum was at $1 048.50/oz from its previous close of $1 050/oz.
“It’s kind of a mixed market at the moment. We have had very big moves in the last day or two and now we are seeing some profit taking and consolidation,” an equities trader said.
“The banks have seen big moves and now there is profit taking there. The likes of Investec have been run up from deep lows and now everyone is taking
profits. Abil is up as everyone seeks bargains.
“The rand is steady on the back of a weaker dollar. The gold price is up and these gold shares are holding up — Gold Fields is looking very strong.
“In general, the market is tentative. It is consolidating and profit taking has come back. It still remains a short-term trading market. We will have to wait and see what happens in the US when they open this afternoon,” he concluded.
Dow Jones Newswires reports that the FTSE 100 stayed down but come off lows. The BOE inflation survey showed price expectations for the year ahead were the lowest since May 2005, but satisfaction with the bank’s monetary policy was at a record low. On the index, there was profit taking in the basic resources and financial sectors in particular. Aviva was the biggest blue-chip decliner, down 13%, after an equity downgrade by Citigroup.
“This is giving extra speed to investors who want to take their profits,” said Joshua Raymond at City Index.
Among equity movers on the JSE, Anglo American gave up R5,69, or 3,62%, to R151,31 and BHP Billiton lost R6,57, or 3,57%, to R177,48.
Petrochemicals group Sasol shed R7,38, or 2,95%, to R242,62.
ArcelorMittal was off 65 cents, or 1%, to R64,40 and Kumba Iron Ore weakened R1,05 to R142,50.
Gold miner AngloGold Ashanti lost R4,47, or 1,38%, to R318,53, but Gold Fields added R3,85, or 3,43%, to R116 and Harmony put on R1,50, or 1,34%, to R113,25.
Platinum miner Anglo Platinum gave up R8, or 1,86%, to R422 and Lonmin shed R18,80, or 10,33%, to R163,20, but Impala Platinum firmed R1,81, or 1,36%, to R134,81.
In diversified miners, African Rainbow was off R1,50, or 1,34%, to R110,50 and Exxaro weakened 90 cents, or 1,43%, to R62,10.
Elsewhere on the JSE, brewer SABMiller lost R1,09 to R132,75, Barloworld lost 80 cents, or 2,86%, to R27,20, Famous Brands gave up 25 cents, or 1,89%, to R13 and Tiger Brands shed R1,95, or 1,56%, to R123,05.
Among banks Standard Bank weakened R1,10 or 1,46%, to R74,50, Absa weakened R1,31, or 1,46%, to R88,19 and FirstRand shed 36 cents, or 3,03%, to R11,51.
Nedbank gave up 86 cents, or 1,14%, to R74,64. The bank earlier announced that its Eyethu shares were currently in maturity phase, three years after the groundbreaking empowerment scheme was launched.
So far 20% of the shareholders are opting to retain their shares with 40% cashing in on their shares.
“We are urging the remaining 40% of shareholders to indicate what they would like to do with their shares,” said Nedbank managing director Rob
Shuter.
Financial services group Old Mutual fell 15 cents, or 2,74%, to R5,33 and Investec weakened R2,83, or 8,71%, to R29,67, but Sanlam was up 25 cents, or 1,68%, to R15,15.
Media group Naspers added R3,55, or 2,45%, to R148,55 but Kagiso Media was off 25 cents, or 2,17%, to R11,25.
Among retailers, Truworths was up 72 cents, or 2,58%, to R28,63 and Shoprite gained R1,46, or 3,27%, to R46,16.
New Clicks was unchanged at R14. The company said earlier that it is to sell up to 17 Musica retail outlets to MTN and to release space for MTN in six other Musica stores.
In terms of the agreement, MTN will take over Musica’s rental obligations, certain store-related service contracts and permanent staff in the 17 stores. The six stores where space has been released will be converted into separate MTN retail outlets.
Construction group Aveng weakened 79 cents, or 2,84%, to R27 and Murray & Roberts lost R1,32, or 3,35%, to R38,08, but Group Five was up 30 cents, or 1,03%, to R29,49.
Cement manufacturer Pretoria Portland Cement added 80 cents, or 2,91%, to R28,30.
Packaging group Nampak fell 35 cents, or 2,71%, to R12,55.
Telecommunications group MTN Group added R1,70, or 1,86%, to R93,20. The group earlier reported a 33% increase in adjusted headline
earnings per share to 904,4 cents for the year ended December 2008 from 681,9 cents a year ago. Basic HEPS increased by 43% to 836,5 cents. A cash dividend of 181 cents a share has been declared.
Demand for mobile services continued to impress on the upside in key markets amid the global economic slowdown which negatively effected many other sectors in 2008, it said. The group recorded 90,7-million subscribers at the end December 2008, compared with 61,4-million at the end of December 2007.
Telkom however lost 27 cents to R99,73. – I-Net Bridge