Gold counters took the brunt of the losses on the JSE on Monday morning in line with a $5 fall in the gold price
Gold counters took the brunt of the losses on the JSE on Monday morning in line with a $5 fall in the gold price, but dealers hold out hope a weak rand could feed through in the afternoon session to help commodity stocks.
By 12:00 local time the JSE all share index declined 0.21%, with gold counters down 1.58%. Resources declined 0.39% but the platinum index was one of only two gains, up 0.26%. Banks were down 0.10%, financials shed 0.24% while industrials was the other gain but only 0.01%.
The rand was bid at 6.99 to the dollar from 7.00 at the JSE's close on Sunday. Gold was quoted at US$1,364.46 a troy ounce from $1,370.37/oz at the JSE's previous close, while platinum was at $1,677/oz from $1,678/oz before.
Nedgroup Securities sales trader Susan Lendrum said: "The JSE is still trading weaker but it has recovered off its worst levels. Resources are still weakfish, the volume traded is looking low but the rand is weakening a bit which should help further recovery off the worst levels."
Dow Jones Newswires reported that European stocks remained steady in the red as investors kept an eye on continuing talk of a bail out for Ireland and considered signs of possible policy tightening activity and rate hikes in China. Mining stocks led the way down as base metals traded lower and as the dollar strengthened.
On the JSE, heavyweight Anglo American lost R0.49 or 0.15% to R336.50. Earlier Anglo American announced it is to sell Moly-Cop and AltaSteel to OneSteel for a total consideration of $932 million on a debt and cash free basis.
Sasol lost R3.85 or 1.14% to R333.15.
BHP Billiton , which earlier abandoned its US$39 billion bid for Canadian fertiliser company Potash Corp. of Saskatchewan Inc, was down 34 cents to R265.25.
Among gold counters, Anglogold Ashanti lost R4.73 or 1.36% to R343.27 and Gold Fields shed R2.56 or 2.07% to R121.
Among platinums, Anglo Platinum was down R1.54 to R713.71 and Impala Platinum gained 90 cents or 0.42% to R214.90.
Northam Platinum lost 24 cents or 0.48% to R49.65.
Mining group Lonmin plc on Monday reported earnings per share of 56.9 US cents for the year ended September 2010 from a loss of 163.7 cents a year ago. Underlying EPS amounted to 70.2 cents after a loss of 59.2 cents a year ago. The group's revenue rose to $1.585 billion from $1.062 billion a year ago, while its operating profit grew to $203 million from a loss of $142 million last year, while underlying profit was $237 million after a loss of $111 million a year ago. Lonmin shares on the JSE gained R4.00 or 2.03% to R201.00.
Agriculture processing and land development group Tongaat Hulett on Monday announced diluted headline earnings per share of 468.9 cents for the six months ended September 2010 from 430.6 cents previously.
Diluted earnings per share rose to 472.6 cents from 440.1 cents earlier. An interim dividend of 110 cents per share was declared. Revenue increased to R4.724bn from R4.011bn previously, while profit from operations increased to 963 million rand from 873 million rand in 2009. Tongaat Hulett 's shares were down 1.36% trading at R105.40.
Furniture retailer JD Group (JDG) was up 1.30 rand to 54.59 rand. It reported diluted headline earnings per share of 300.1 cents for the year ended August 2010 from 44.2 cents a year ago. A final dividend of 80 cents per share was declared from 41 cents a year ago, for a total dividend for the year of 150 cents compared with 41 cents a year ago.
Astral Foods on Monday announced full year diluted headline earnings per share of 959 cents for the year ended September 2010 from 890 cents previously. Diluted earnings per share rose to 939 cents from 905 cents. The group declared a final dividend at 470 cents per share, up 7% on 2009. Revenue declined to R8.367bn from R8.833bn, while its operating profit was a fraction higher at 585.4 million rand from R580.9m in 2009. Its shares on the JSE rose 1.27% to R119.00.
Hospital group Netcare was up 10 cents, or 0.63%, to 15.90 rand. It reported diluted headline earnings per share of 94.1 cents for the year ended September 2010 from 77.5 cents previously. Its diluted earnings per share declined to 94.6 cents per share from 122.6 cents earlier.
A final distribution of 27.5 cents per share was declared by way of a capital reduction out of share premium of 6.5 cents per share and a dividend of 21 cents per share.
Africa's second largest food retailer Pick n Pay on Monday announced a major structural change to the executive management of the group.
The current executive committee, retail management board and group enterprises board are replaced by a group executive consisting of accountabilities in marketing and sustainability, buying, operations, supply chain/IS, franchise, group enterprises, finance, HR, transformation and customer.
CEO Nick Badminton said that the changes were required in order to streamline the company's operations with a very firm focus on customer sovereignty, efficiency and area specialisation.
Pick n Pay's shares were 43 cents down trading at R48.57.
