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Johannesburg - The JSE was flat on Monday morning‚ as an uptick in industrials was offset by losses in the mining sectors.
The benchmark JSE All Share [JSE:J203] index was flat (0.03%) shortly after the open at 41 423.93 points.
The gold index shed 2.57% after having given up 3.54% on Friday‚ due to the generally stronger US dollar.
The platinum index shed 1.69%‚ after recovering 1.83% on Friday after strikes in the sector came to an end. Amplats workers reported for duty on Friday morning and those at Lonmin’s Rustenburg operations were also back on the job after an unprotected strike. But labour concerns remain‚ which pushed the index softer on Monday morning.
Industrials garnered 0.33%.
At 9:23 the spot price of gold was 0.32% firmer at $1 347‚60/oz and the spot platinum price was 1.40% firmer at $1 449/oz.
The dollar has recently gained strength after US central bank officials said the Federal Reserve may begin easing up its monetary stimulus this US summer.
In the East‚ Japan’s Nikkei closed 1.47% stronger‚ and at 9.08am local time Honk Kong’s Hang Seng index was up 1.66%.
“News on the labour front is actually quite good. Amplats workers have postponed their strike‚ while the wildcat strike at Lonmin has finished. However‚ it will be easy for the market to find a negative. The National Union of Mineworkers is demanding a 15%–60% wage hike for workers‚” Rand Merchant Bank said in a morning note. Such a big increase was the usual starting point of negotiation strategy‚ but was the next step towards another volatile round of talks and would raise fears of further strikes‚ the bank said.
“Monetary policy is the key issue globally. The main focus will be on Bernanke’s address to Congress on Wednesday afternoon as talk grows of an early ending of quantitative easing. This week also sees the Bank of Japan and Reserve Bank of Australia meet‚ as well as minutes from the US Fed and Bank of England. Monetary policy is also in focus locally‚ with the monetary policy committee decision due Thursday‚” RMB said.
Among individual shares on the JSE‚ AngloGold Ashanti (ANG) was down 2.54% at R157.89 and Harmony (HAR) gave back 2.26% to R35.04 after plummeting more than 6% on Friday.
Impala Platinum (IM) slid 1.67% to R96.35 and Lonmin (LON) was down 2.81% at R38.08 after rising more than 3% on Friday.
Industrial group Barloworld (BAW) relinquished 0.96% to R94.09 despite on Monday announcing 31% growth in headline earnings per share to 321c in the six months to March
African Bank Investments’ (ABL‚ Abil) slumped 5.75% to R19.85 after it said on Monday headline earnings fell by 26% in the six months to March to R1.02bn‚ after the country’s leading unsecured lender slowed its growth to reduce risk.
Protech Khuthele Holdings (PKH) was 1.89% firmer at 54c after it reported a return to profit on Monday as headline earnings per share grew to 3.9c from a loss of 1c per share in the year to February. Protech is the target of a hostile takeover by construction equipment leasing and contract mining group Eqstra Holdings (EQS).
