Profit-taking hurts bourse

JSE closed softer yesterday on consolidation and profit-taking amid volatile trade after closing at a record on Wednesday.

At 5pm, the all share index closed 0.23% softer at 44,350.31 points, with the platinum and industrial indices leading the downside.

The platinum index shed 1.13% and industrials gave back 0.49%. The gold index led the gainers, adding 0.90%, followed by resources, which were 0.35% firmer.

“It has been a volatile day’s trade in markets, with our top 40 index opening at and extending new highs before ebbing and flowing between marginal gains and losses into afternoon trade,” IG markets analyst Shaun Murison said.

Last month’s domestic producer price index (PPI) figure, a short-term indicator of inflationary trends, came in at 6.7% year on year, higher than July’s reading of 6.6%, and missed the consensus forecast of 6.5%, he said.

“Surprisingly the rand remained firm against the dollar despite the PPI figures, a looming strike at Anglo American Platinum and a greenback which is strengthening significantly against the euro and the pound,” he said.

On the economic front, the number of Americans seeking new unemployment benefits remained near six-year lows in the latest week, with the number of initial jobless claims falling 5,000 to a seasonally adjusted 305,000.

The reading was lower than economists’ forecast of 330,000 new claims.

Meanwhile, a third look at second-quarter gross domestic product was left unrevised at 2.5%, on a seasonally adjusted annual rate, versus economist forecasts for a revised growth rate of 2.8%.

Among individual shares on the JSE, Anglo American (AGL) dipped 0.48% to R249.89, while rival BHP Billiton (BIL) gained 1.56% to R301.58.

Kumba Iron Ore (KIO) gave up 2.10% to R461.50 and ArcelorMittal SA (ACL) shed 3.41% to R34. AngloGold Ashanti (ANG) climbed 1.49% to R134.12, while Harmony (HAR) eased 1.25% to R34.90.

Sibanye Gold (SGL) surged 4.83% to R13.66. The gold miner said yesterday that Van Eck Associates had acquired an interest in Sibanye’s shares and it now had a total interest of 5.97% of the issued ordinary shares of Sibanye.

Platinum counter Impala Platinum (IMP) led the losers in the platinum sector, ending 2.09% lower at R125.14, followed by Anglo American Platinum (AMS), which ended 0.63% lower at R440.