JSE closes lower despite rebound in mining shares
THE JSE all share closed lower on Tuesday despite platinum shares rocketing on the day as the overall market was dragged down by industrials and financials.
Platinum was well supported by resources and gold as global markets recorded a tepid performance ahead of data releases later in the week. Investors are waiting for the release of US nonfarm payrolls data on Friday; until then the data calendar remains thin‚ with very little to push the market in either direction.
At the JSE’s close the Dow Jones industrial average was 0.11% weaker with the FTSE 100 marginally weaker (-0.01%). The Paris CAC 40 had lost 1.27%.
The JSE all share traded flat for most of the day in indecisive trading with analysts saying global equities generally appear overbought in the short term. Uncertainty increased amid indications UK Labour leader Ed Milliband could form a government after this week’s elections‚ even though incumbent David Cameron’s Conservative Party would win the most seats.
At 5pm the all share was down 0.12% to 54‚574.99 and the blue-chip top 40 had dropped 0.27%. Platinums gained 3.8% and resources firmed 1.36%. Gold shares added 0.94% and banks were 0.34% stronger. Industrials lost 0.52% and financials were 0.09% lower.
IG SA market analyst Shaun Murison said resources witnessed a strong rebound in April. This was driven by BHP Billiton‚ which is up 18.6% so far this year‚ amid the anticipation of a slowing rate of increased iron ore production. The resource 10 index has gained 10.9% so far this month and 8.5% in the year to date.
"We have seen the industrial sector‚ in particular retail shares‚ performing worse with the weakness in Steinhoff‚ Clicks and The Foschini Group the first pullbacks from record highs reached only last month‚" he said.
"Impala Platinum and Anglo American Platinum were strong gainers on significantly higher volumes‚ making the current rebound hopefully more sustainable."
Mr Murison said there was little in terms of local economic data expected this week‚ with the US nonfarm employment data taking centre stage on Friday.
Among platinum shares Lonmin rose 6.22% to R27.82, Anglo American Platinum added 5.26% to R349.97, and Impala Platinum firmed 3.94% to R69.95.
Anglo American was the leading performer among the global mining houses, gaining 3.6% to R214 with Glencore closing 1.1% higher at R57.22. BHP Billiton was flat (0.06%) at R295.26.
Coal producer Exxaro Resources firmed 6.45% to R106.31 and Assore gained 4.68% to R120.90.
In the gold sector Gold Fields was 2.02% higher at R54.45 and Sibanye dropped 2.4% to R24.40 after reporting a poor quarterly performance on Monday.
Among retailers Pick n Pay closed 1.14% weaker at R56.24, while Mr Price gained 1.09% to R250.81 after saying full-year headline earnings per share were expected to rise by between 18%-22%.
SABMiller shed 2.36% to R627.66.
Brait closed unchanged at R90 after on Tuesday saying it expected its net asset value per share for the year ended March 2015 to have increased in euro between 165% and 175% from €2.20 in the year-earlier period.
Among banks Standard Bank recovered 1.04% to R174. In the financials sector Sanlam gained 1.11% to R75.79 but Old Mutual lost 0.26% to R42.30. Short-term insurer Santam firmed 0.74% to R230.70.
Industrial group Reunert surged 5.97% to R65. It said headline earnings per share for the six months ended March 2015 were expected to increase by between 7% and 17% from 238.5c in the year-earlier period.
Among property stocks Resilient was up 0.93% to R98.70 but New Europe Property Investments dropped 0.93% to R143.50.