The JSE remained flat by noon on Friday with a trader noting that the bourse was hanging and eyeing global markets as positive sentiment from the election begins to wear off.
The JSE all-share index had edged down 0,28% and resources eased 0,24%. Platinum counters edged up 0,70% and gold miners gained 2,92%.
Banks were down 1,44%, financials weakened 0,43% and industrials eased 0,24%.
The rand was last bid at 8,85 to the dollar, from 8,95 when the JSE closed on Thursday. Gold was quoted at $909,85/oz a troy ounce from $905,95/oz at the JSE’s last close, and platinum was at $1 179/oz, from $1 178,50 its previous close.
“We are still flat. The market is kind of hanging at the moment,” the trader said.
“But we had a good day yesterday. If the gold stocks were not looking good, the market would have been down even more today. These stocks are holding us up.
“We are likely to remain flat for the day, and eye the Dow later this afternoon. The positive sentiment from the well-run election is over and now we will turn to looking at global markets again,” he said.
Dow Jones Newswires reports that the FTSE 100 maintained gains despite GDP data showing a greater contraction in the economy than expected. James Knightly, economist at ING Bank, said the GDP report highlights how optimistic the Chancellor is in his budget assumptions and that the risk to fiscal deficit “remains heavily to the upside”.
A trader noted March retail sales were actually up on the month versus expectations of a fall, “which could be giving a short term, if artificial lift”. US durable goods orders are expected at 12:30 GMT, followed by new home sales at 2pm GMT.
US stocks are expected to open slightly higher, as investors are cautious ahead of the announcement of more details regarding the Treasury’s stress tests on banks, said David Morrison, strategist at GFT.
He called the DJIA to open up 10 points and the S&P 500 up one point.
“While we don’t expect the results to become public until May 4, the parameters will be announced today, and it is likely that leaks and wild speculation will increase in intensity,” he said.
Among equity movers on the JSE, Anglo American eased 24 cents to R174,61 and BHP Billiton lost R3,59, or 1,96%, to R179,41.
Petrochemicals group Sasol was down R4, or 1,49%, to R264.
Highveld Steel gave up R1, or 1,52%, to R65 and ArcelorMittal weakened R3,02, or 3,78%, to 76,98, but Kumba Iron Ore rose R1,99, or 1,28%, to R156,99.
Among gold miners, AngloGold Ashanti added R6,12, or 2,16%, to R289,82, Gold Fields firmed three rand, or 3,08%, to R100,50 and Harmony was up R3,80, or 4,63%, to R85,80.
DRDGold strengthened 23 cents, or 3,51%, to R6,78. It earlier reported a 38% rise in operating profit to R129,9-million for the quarter ended 31 March 2009 compared with R94,3-million in the December quarter.
The group said the higher operating profit reflects both a 19% increase in the average $/oz gold price received for the period to $915/oz and a 15% increase in the R/kg gold price received to R292 369/kg, as well as R/kg cash operating costs 3% lower at R211 666/kg and $/oz cash operating costs contained at $653/oz.
Gold production was 2% lower at 58 997 oz compared with the December quarter, due mainly to a drop of more than 50% in gold production from ERPM to 4 308 oz, a consequence of the suspension of underground mining in the December 2008 quarter.
Platinum miner Anglo Platinum was up R14,52, or 3,49%, to R431,02, but Lonmin fell R2,10, or 1,18%, to R176,40.
In diversified miners, African Rainbow firmed R5,61, or 4,82%, to R122 but Hulamin was down 50 cents, or 4,54%, to R10,51.
Among industrials on the JSE, brewer SABMiller gave up R1,24 to R136,26, Tiger Brands lost R2,66, or 1,95%, to R133,73, British American Tobacco was down R3,05, or 1,45%, to R207 and Imperial weakened 60 cents, or 1,14%, to R52.
However, Barloworld was up 64 cents, or 1,87%, to R34,88.
Banker Standard bank gave up R1,40, or 1,73%, to R79,60, Absa lost 98 cents, or 1.03%, to R94.42 and FirstRand was off 27 cents, or 2,12%, to R12,48.
Financial services group Old Mutual collected 12 cents, or 1,59%, to R7,65 and Sanlam put on 22 cents, or 1,42%, to R15,72.
Retailer Truworths fell R1,10, or 3,12%, to R34,20, Lewis was down 88 cents, or 2,07%, to R41,62, JD Group weakened 85 cents, or 2,54%, to R32,67 and Foschini lost 56 cents, or 1,20%, to R46,14.
Construction group Aveng added R1,11, or 3,65%, to R31,50 but Group Five was off 64 cents, or 2,14%, to R29,23 and Murray & Roberts fell R1,16, or 2,52%, to R44,84.
Cement manufacturer Pretoria Portland Cement gave up 65 cents, or 2%, to R31,83.
Packaging company Nampak lost 23 cents, or 1,76%, to R12,87. It earlier advised on Friday that its headline earnings per share and basic earnings per share are expected to be between 35% and 45% lower than the 109,9 and 110,4 cents per share respectively for the six months ended 31 March 2009 from the year earlier period.
The company said this is mainly attributable to the release of a tax provision of R102,7-million in the corresponding period of the previous year and an after tax loss on the fair value of financial instruments of R45,4-million against a gain of R75,3-million in the corresponding period of the previous year.
Telecommunications group MTN Group added R1,20, or 1,16%, to R104,70 and Telkom was up R1,10, or 1,02%, to R109.– I-Net Bridge