The JSE edged into the red by noon on Tuesday with profit taking and worse-than-expected local GDP data weighing on the bourse, a local trader said.
By noon, the JSE all-share index had edged down 0,79%, with resources losing 1,18%, gold miners falling 2,71% and platinum counters giving up 2,12%.
Banks collected 0,44% and financials edged up 0,17%, but industrials weakened 0,86%.
The rand was last bid at 8,37 to the dollar from 8,28 when the JSE closed on Monday. Gold was quoted at $944,65/oz a troy ounce from $956,75/oz at the JSE’s last close, and platinum was at $1 134/oz, from $1 135/oz at its previous close.
“It’s on the back of the GDP figures. These were worse than expected. But I wouldn’t read too much into that. It was expected to be bad, it’s no new news,” a local trader said. The market has had a big move up and profit taking is expected. We will also follow the trend of overseas markets.
“There are, however, some areas that are holding up.
“The GDP is a bit worrying for the market. We will have to wait and see. But for now, we have had some big moves and it won’t be surprising to see some volatility and profit taking,” he said.
Anglo American eased 10 cents to R209 and BHP Billiton weakened 87 cents to R183,49.
Sasol was down R2,52 to R289,98.
Highveld Steel was up R1, or 1,49%, to R68 but Kumba Iron Ore lost R5,48, or 2,85%, to R186,50.
Gold miner AngloGold Ashanti shed R9,36, or 2,89%, to R314,81, Gold Fields declined R2,60, or 2,35%, to R108 and Harmony lost R2,90 or 2,94%, to R95,90.
Platinum miner Anglo Platinum gave up R5,09 to R514,01, Impala Platinum dropped R4,60, or 2,53%, to R177,10 and Lonmin was off R3,64, or 2,10%, to R169,36.
Wesizwe Platinum was down five cents, or 3,03%, to R1,60. It earlier said that it has successfully negotiated and signed a formal agreement for a R55-million standby equity facility with US-based investment fund YA Global Investments, LP (Yorkville).
The facility, which is the first such facility to be negotiated by a South African company, will be in place for 36 months and provide Wesizwe with the flexibility to access significant liquidity, through the issue of new shares, at its sole discretion.
Under the terms of the agreement, Wesizwe is entitled to offer Yorkville newly issued Wesizwe shares for up to a total value of R550-million and in turn Yorkville will be obliged to subscribe for and purchase these new shares.
In diversified miners, African Rainbow was up 85 cents to R126,12, but Exxaro gave up R1,42, or 1,78%, to R78,50.
Diamond miner Trans Hex Group was unchanged at R1,33. It earlier reported the widening of its full year loss to R797,6-million for the year to end March 2009 from a loss of R18,5-million for the previous year.
Headline loss from continuing operations was 585,1 cents a share compared with a headline profit of 8,6 cents a share the previous year,
while the headline loss from discontinued operations was 17,2 cents versus last year’s 16,1 cents.
The company’s financial performance was hurt by a R569-million impairment of assets, R460-million of which relates to its Angolan operations.
Loss for the year from continuing operations before impairments and taxation amounted to R280-million.
Adjusted headline loss per share for continuing operations were reported at 248,4 cents.