File picture: Alex Grimm File picture: Alex Grimm
The JSE closed little changed on Monday, with the local stock exchange recouping earlier losses thanks to foreign fund inflows and possible futures-related trading ahead of a futures close-out next week.
By 09:19 local time, the benchmark index had lost 0.70%. Despite recouping some of the earlier losses, there were lingering concerns about the crisis in Libra and rising oil prices, an equity derivatives dealer said.
The gold price hit a new all-time high on Monday of US$1,444.90 per fine ounce as oil continued to rally amid ongoing political tensions in the Middle East and North Africa.
At the close, the JSE all-share index was little changed (-0.12%), with gold counters falling 0.60%, resource stocks sliding 0.46% and platinum miners shedding 1.17%. Banks lost 0.39% and financials shed 0.18%, but industrials firmed 0.25%.
The rand was bid at 6.85 to the dollar, from 6:88 at the JSE's close on Friday. Gold was quoted at US$1,435.53 a troy ounce from US$1,426.72/oz at the JSE's previous close, while platinum was at $1,836.50/oz from $1,840.50/oz before.
Firmer global equities also boosted sentiments on the local market, an equity derivatives dealer said. “There could be futures-related trading,” he said.
At around noon, a head of equity trading at one institution said foreign investors were pouring money into South African equities, helping the local bourse reverse losses.
Dow Jones Newswires reported that U.S. stocks edged higher on Monday as energy companies rose on the back of higher oil prices.
The Dow Jones Industrial Average rose 51 points, or 0.4%, to 12221.
The energy sector boosted the S&P 500 as crude-oil prices continued their march higher. Concerns mounted over supply disruptions as opposition forces and soldiers loyal to Libyan leader Col. Moammar Gadhafi clashed near some of the country's key energy installations. With no end in sight for the conflict, the oil market began to price in a much longer interruption to Libya's production of 1.6 million barrels a day.
On the JSE, Anglo American (AGL) lost 50 cents to 373.50 rand, and BHP Billiton (BIL) slid 2.55 rand to 277.75 rand.
But Sasol (SOL) gained 2.49 rand to 386.99 rand. The company on Monday reported a 22% rise in headline earnings per share to 12.97 rand for the six months ended December 2010 from 10.67 rand a year ago. On a diluted basis, headline earnings per share (HEPS) rose to 12.98 cents from 10.69 cents.
An interim dividend of 3.10 rand was declared. Earnings attributable to shareholders increased by 21% to 7.6 billion rand and operating profit was up 15% at 12.0 billion rand compared with the prior year.
Operating profit was positively affected by higher average crude oil prices and chemical product prices. However, a 7% stronger average rand/US dollar exchange rate partially offset the benefits of the higher average crude oil prices.
Among gold miners, Anglogold Ashanti (ANG) eased 5.00 rand or 1.50% to 329.00 rand, but Harmony (HAR) advanced 2.50 rand or 3.09% to 83.50 rand.
Angloplat (AMS) gave up 11.44 rand or 1.63% to 691.46 rand and Northam Platinum (NHM) fell 80 cents or 1.71% to 46.00 rand.
Steel maker ArcelorMittal (ACL) collected 1.69 rand or 1.96% to 88.00 rand, and diversified miner Exxaro (EXX) firmed 1.79 rand or 1.15% to 157.04 rand.
In the industrial sector, British American Tobacco (BTI) slumped 12.16 rand or 4.32% to 269.00 rand after going ex-dividend.
AVI (AVI) was down 34 cents or 1.14% at 29.51 rand after reporting HEPS from continuing operations of 152 cents - up 36% from a year ago. Diluted HEPS from continuing operations rose to 147.6 cents from 109.0 cents - a rise of 35%.
Operating profit from continuing operations was up by 30% to 695 million rand and cash generated from operations grew 28% to 792 million rand. An interim dividend of 50 cents per share was declared - up 28% from a year ago.
The company said consumer demand in the six months to December 2010 was strong in its fashion brand businesses, and sound within the food and beverage categories.
York Timber Holdings (YRK) plunged 50 cents or 13.16% to 3.30 rand. The company said on Monday that it expected headline earnings per share for the six months ended December 2010 to be between 99% and 109% higher than previously.
It anticipated a loss of two cents to a profit of 13 cents per share, compared with a loss of 141 cents per share in 2009. Earnings per share are expected to be between 97% and 107% higher than earlier.
York said it expected a loss of four cents to a profit of 10 cents per share, from a prior loss of 135 cents.
Mobile phone operator MTN (MTN) rallied 2.50 rand or 2.02% to 126.50 rand, but telecommunications group Telkom (TKG) shed 40 cents or 1.14% to 34.80 rand.
Banking group ABSA (ASA) edged down 2.95 rand or 2.29% to 126.05 rand and Nedbank (NED) fell 2.60 rand or 1.90% to 134.05 rand.
FirstRand (FSB) slipped 36 cents or 1.85% to 19.06 rand. The company boosted diluted headline earnings per share by 16% from 73.3 cents to 85 cents for the six months ended December 2010.
Headline earnings on an IRFS basis grew by 19% to 4.625 billion rand. Normalised earnings - which the group prefers to use as a measure of its performance - were up 20% to 4.752 billion rand, resulting in diluted normalised earnings per share increasing by the same margin from 70 cents to 84.3 cents. The group declared an interim dividend per share of 35 cents.
RMB Holdings (RMH) was down 11.60 rand or 30.53% at 26.40 rand.
Rand Merchant Insurance Holdings (RMI), which houses all of RMB Holdings' former insurance divisions under one roof, started trading on the JSE on Monday.
The separate listing is part of RMB's (RMH) restructuring which has resulted in the creation of separate focused insurance and banking entities.
RMI Holdings holds a 25% interest in the ordinary shares of health insurance group Discovery Holdings Limited, a 90% interest in the ordinary shares of OUTsurance, a 76% interest in the ordinary shares of RMB-SI (Proprietary) Limited (RMB-SI”) and a 24% interest in the ordinary shares of MMI Holdings. RMI's share price closed at 12.51 rand.
In the retail sector, Woolies (WHL) slumped 87 cents or 3.14% to 26.88 rand and JD Group (JDG) lost 1.25 rand or 2.45% to 49.75 rand. - I-Net Bridge