The JSE was flat by noon on Tuesday, with resources and gold counters offering some support in what a trader said was a session with some profit taking and consolidation as the local bourse continued to follow world market sentiment.
The JSE all-share index was flat, down 0,30%. Resources edged up 0,15% and gold miners collected 0,33%, but platinum counters weakened 0,61%.
Banks shed 3,32%, financials were down 1,43% and industrials eased 0,23%.
The rand was last bid at 9,09 to the dollar, from 9,08 when the JSE closed on Monday. Gold was quoted at $889,35/oz a troy ounce from $882,87/oz at the JSE’s last close, and platinum was at $1 171/oz, from its previous close of $1 159.50.
“We are flat. Overseas markets were down earlier, but managed to recover off their low levels,” the trader said.
“We have been in the direction of world markets. Now we are seeing some support coming into the market. Resources and miners are offering support at the moment.
“However, we are still seeing a sell off in banks. It’s pretty mixed out there. The rand is moving in line with emerging market currencies. Overall we are following world market sentiment with a bit of profit taking.
“Also, after the recent gains on the market it’s not surprising to see some consolidation,” he said.
Dow Jones Newswires reports that the FTSE 100 fell into the red on Tuesday. Trading is “muted” according to Joshua Raymond, market strategist at City Index. He said there was also a lack of direction, with the focus already on tomorrow’s Budget.
Life insurance companies lead the declines on concerns the Chancellor could make some detrimental moves on Wednesday on higher-rate tax relief. Elsewhere, US weekly retail sales are expected at 11:45 GMT, followed by Johnson Redbook at 12:55 GMT.
The FTSE 100 had last edged down 0,19%.
US stocks are expected to rise at the open on a modest bounce from Monday’s sell off, said David Morrison, strategist at GFT.
He called the DJIA to open up 53 points at 7 895 and the S&P 500 up 8 at 840,4. “The big question is whether yesterday’s pullback was healthy profit taking after the six-week rally or the start of a concerted sell-off, which will gather pace,” he said.
Among equity movers on the JSE, Anglo American was barely changed, down 1 cent to R170,10 and BHP Billiton was unchanged at R176.
Petrochemicals group Sasol was up R1,01 to R259,01.
ArcelorMittal was down R3,50, or 4,32%, to R77,52 and Kumba Iron Ore lost R4,86, or 3,04%, to R155,14, but Highveld Steel was up R1,98, or 2,96%, to R68,98.
Among gold miners, AngloGold Ashanti added R2,86, or 1,02%, to R282,86 but Gold Fields lost R1,10, or 1,12%, to R97 and Harmony edged down 55 cents to R78,55.
Platinum miner Anglo Platinum shed R10,50, or 2,39%, to R429,50 but Lonmin firmed R2,50, or 1,53%, to R165,50.
Aquarius Platinum was up R1,80, or 5,88%, to R32,40. It earlier reported a 92,8% year-on-year fall in its net profit for the March quarter.
The company reported a net profit of $6,5-million for the three months to end March 2009, compared with a net profit of $90,8-million for the same three months a year ago.
In diversified miners, African Rainbow lost R2,20, or 1,94%, to R111,25 but Exxaro put on 88 cents, or 1,39%, to R64,38.
Among industrial on the JSE, brewer SABMiller firmed R1,81, or 1,31%, to R139,66 and Barloworld collected 41 cents, or 1,17%, to R35,42.
However, Remgro was down 79 cents, or 1,10%, to R71,21 and Imperial was down one rand, or 1,85%, to R53.
Banking group Standard Bank was off R2,80, or 3,42%, to R79, Nedbank lost R3,36, or 3,87%, to R83,36, Absa fell R3,70, or 3,87%, to R92 and FirstRand shed 33 cents, or 2,64%, to R12,17.
Absa earlier said that its retail banking operations have been impacted by the weak consumer environment, which has resulted in lower than expected transaction volume growth as well as higher delinquencies.
Retail impairments have also risen, Absa CEO Maria Ramos told the group’s annual general meeting.
Ramos said that at the release of the group’s year-end results to 31 December 2008, Absa had cautioned that global recessionary conditions, brought about by the global credit crisis, were expected to persist during the course of the current financial year.
But these conditions had proved to be worse than anticipated as the depth and breadth of this crisis remained severe and uncertain.
Financial services group Old Mutual added 21 cents, or 2,80%, to R7,72.
Sugar group Illovo gained 44 cents, or 1,69%, to R26,44.
Among retailers, Shoprite shed R2,13, or 4,02%, to R50,87, Foschini lost 51 cents, or 1,10%, to R45,87 and Truworths was down 51 cents, or 1,48%, to R33,99.
Liberty International gave up 90 cents, or 1,53%, to R58.
Construction group Aveng collected 33 cents, or 1,17%, to R28,50, Murray & Roberts added R1,52, or 3,80%, to R41,57 and WBHO put on R1,93, or 2,13%, to R92,75.
Telecommunications group MTN Group lost R1,48, or 1,40%, to R104,02 and Telkom gave up R1,74, or 1,63%, to R105.