JSE weaker amid profit taking

The JSE was straight into red territory on Monday morning amid some profit taking, following a 300-point gain on Friday.

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The JSE was straight into red territory on Monday morning amid some profit taking, following a 300-point gain on Friday.

By 09:18 local time, the JSE all share index dipped 0.15%, with resources 0.25% weaker, and gold miners off 0.54%. Platinum miners bucked the trend, adding 0.49%.

Financials declined a fraction by 0.06%, banks dropped 0.07% and industrials were also slightly lower by 0.08%.

The rand was trading at 7.03 to the dollar, unchanged from 7.03 at the JSE's close on Friday. Gold was quoted at US$1,351.84 a troy ounce from US$1,344.09/oz at the JSE's previous close, while platinum was at $1,828.50/oz from $1,826.50/oz before.

A local dealer noted that the early drop on the local bourse was somewhat of a surprise, given sentiment elsewhere. “I was expecting a firmer start this morning, but we did see a good run on Friday afternoon.”

“Overseas is looking better and commodities are firmer, so we might see the JSE rise later in the day,” he said.

Dow Jones Newswires reports that Asian stock markets were mixed on Monday, with the Shanghai market falling ahead of the Chinese new year holidays next week.

Japan's Nikkei Stock Average rose 0.7% and South Korea's Kospi Composite was up 0.6%.

The Shanghai Composite Index was down 0.4%, while Hong Kong's Hang Seng Index fell 0.3%.

Many investors were treading carefully ahead of the US Federal Reserve's policy announcement on Wednesday, while concerns about further policy tightening from Beijing continued to weigh on sentiment, after the state-run China Securities Journal said in a commentary on Friday that the first rate hike this year could be around the lunar new year holidays in early February.

Shares in China fell as strong cash demand ahead of the week-long holidays kept investors from buying stocks.

European stocks are expected to open higher, following modest gains in Asia, says Capital Spreads.

It sees the FTSE 100 up 17 points at 5,913. Markets could also be lifted by a slew of euro-zone economic data, with manufacturing and services PMIs at 09:00 GMT, expected to be well above 50, showing that the euro zone continues to maintain its industrial expansion. Potentially adding to the recent trend of positive manufacturing data will be industrial new orders data at 10:00 GMT. They are expected to show a rise of 0.5% month on month and 2.6% year on year.

On the JSE, Anglo American (AGL) dropped 50 cents to 352 rand, Sasol (SOL) lost 94 cents to 364.66 rand, and BHP Billiton (BIL) wavered 1.52 rand to 272.48 rand.

Gold miner AngloGold Ashanti (ANG) declined 1.50 rand to 315.50 rand.

Impala Platinum (AMS) added 1.52 rand to 223.30 rand, Lonmin (LON) picked up 1.87 rand to 203.06 rand, and Aquarius (AQP) firmed 1.15 rand, or 2.85% at 41.50 rand.

Diversified miner Exxaro (EXX) gained a rand at 154 rand, while African Rainbow (ARI) pocketed four rand, or 1.89%, at 216 rand.

Kumba Iron Ore (KIO) gathered 2.25 rand at 467.50 rand.

In the industrial sector, SABMiller (SAB) shed 2.60 rand or 1.08% at 238 rand.

International ICT company Datatec (DTC) advanced 1.11 rand or 3.19% at 35.95 rand. The group on Monday announced that subsidiary Logicalis Group had agreed to acquire Direct Visual, a Tandberg (now part of Cisco) Platinum Partner based in the UK, for a cash consideration.

Direct Visual is one of the UK's leading independent suppliers of video communications with a strong audiovisual and managed-service offering. It has annual revenues of about US$15 million. The full terms of the consideration have not been disclosed.

The business will be integrated into Logicalis's Unified Communications and Collaboration (UCC) operation to strengthen its video offering.

Reunert (RLO) profited 1.06 rand or 1.6% at 67.39 rand.

Telecommunications group Telkom (TKG) added 49 cents, or 1.38% at 36.10 rand, but mobile phone operator MTN Group (MTN) gave up 1.18 rand to 127.12 rand.

Blue Label Telecoms (BLU) rose 25 cents or 3.7% at 7.00 rand.

Supermarket chain Spar (SPP) was 1.70 rand or 1.84% richer at 94 rand.

Famous Brands (FBR) grew 51 cents or 1.25% at 41.30 rand, after the group on Monday reported strong sales over the December holiday season, with system-wide retail sales (including new restaurants) up 13.3% on the prior comparative period, while like-on-like sales grew 7.8% across the franchise network.

The figures countered concerns that performance would be restrained following on from exceptional turnovers achieved during the World Cup period.

CEO Kevin Hedderwick said there had been some apprehension that December turnovers would be soft after the strong consumer spend experienced during the World Cup.

Construction group WBH Ovcon (WBO) improved by 1.50 rand or 1.13% at 134.50 rand.

Media giant Naspers (NPN) added 3.10 rand at 387.30 rand. - I-Net Bridge

Source: http://www.iol.co.za/jse-weaker-amid-profit-taking-1.1016094

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