JSE opens marginally weaker as market consolidates above 58,000
The JSE all share opened flat on Tuesday as the market consolidated above the 58,000 level amid mixed Asian markets after the Dow closed at yet another record high on Monday.
Lower commodity prices and a stable rand kept a lid on gains among the miners. Spot gold lost 0.37% to $1,290.10/oz.
Retailers were flat on upbeat interim results from Pick n Pay while the property index marginally gained on advances from market heavyweight Nepi Rockcastle.
The rand was at R13.3368 to the dollar from R13.3274.
The Dow Jones industrial average closed 0.37% higher on Monday, within a whisker of the record 23,000-point level, as optimism about tax reforms and corporate earnings supported sentiment.
The Nikkei 225 was up 0.38% and the Hang Seng 0.05%.
Bank of America Merrill Lynch said in an early morning note that the positive mood in emerging markets was likely to be reinforced during the upcoming IMF meetings, but the rand remained vulnerable to higher US rates.
It said robust global financial conditions presented upside risk to 2018 growth forecasts. In the absence of significant financial tightening, the hawkish shift in monetary policy was likely to continue.
"A longer-term concern is that today’s stimulative financial conditions could be tomorrow’s vulnerability," Bank of America Merrill Lynch said.
At 9.28am the all share was 0.10% lower at 58,107.10 points and the blue-chip top 40 down 0.07%. The gold index shed 1.72%, platinum 0.67%, resources 0.30%, and food and drug retailers 0.19%. Property added 0.10% and general retailers 0.03%.
Anglo American lost 0.30% to R261.25.
ArcelorMittal reversed earlier gains to shed 6.04% to R5.44.
Among rand hedges, Anheuser-Busch InBev gained 0.73% to R1,675.67.
Harmony was off 3.83% to R23.36 in the gold sector.
Standard Bank was off 0.62% to R170.45.
Among financials, MMI Holdings lost 1.07% to R19.35.
Pick n Pay gained 0.67% to R60.26. Interim pretax profit rose 14.6% to R605.2m and its after-tax profit was up 15% to R438.8m. It raised its interim dividend by 12% to 33.4c from 29.9c.
Spar added 0.28% to R176.17.
Group Five firmed 3.39% to R11.89 as the market continued to react favourably to Greenbay Properties cash offer of R1.6bn for the group’s European assets.
Greenbay was up 0.42% to R2.41.
Nepi Rockcastle rose 0.45% to R193.
Mediclinic lost 2.89% to R115.26 after the group informed the market in a trading update that interim revenue to end-September was expected to be flat.
In the fast-food sector, Famous Brands lost 0.59% to R105, but Taste Holdings rose 5.26% to 80c.