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Johannesburg - Fears that North Korea could continue to provoke the United States and its allies kept financial markets in limbo on Tuesday, and the JSE followed the global pattern.
Although the markets stopped Monday’s bleeding, indices did not move much and the major indices on the JSE were all marginally lower. The Gold index, which made a strong run on Monday on the back of a higher gold price, fell victim to some profit-taking.
The gold price however lifted 0.50% to $1 332.04 per fine ounce - the highest level for the year to date. Platinum gained 0.28% to trade at $1 001.83.
MSCI’s index of Asia-Pacific shares outside Japan was up 0.2%, thanks to gains in Chinese shares, but many markets were in the red. Japan's Nikkei index fell 0.6% on fears of more provocation from North Korea, which appeared to be preparing for further ballistic missile tests. European markets edged higher, underpinned by financial shares.
By mid-morning the All-share index was 0.16% lower at 56 205 points and the Top 40 index traded 0.18% softer at 49 705 points. At that stage the Financial index was 0.16% lower and the Industrial index 0.23% down in line with global markets, where the dual-listed shares on the JSE are also listed.
The Resources index was 0.10% softer, with BHP [JSE:BIL] trading on a 52-week high. Anglo American [JSE:AGL] and Glencore [JSE:GLN], which traded on highs on Monday, were marginally lower.
The rand remained steady at around R12.95 to the dollar, dampening enthusiasm for dual-listed and resources shares which earn most of their income abroad.
At mid-morning the Gold index was already 2.34% softer with Sibanye [JSE:SGL] the biggest loser among the top gold shares, losing 4.41% R20.14. Harmony [JSE:HAR] was 3.58% softer at R36.60 and Gold Fields [JSE:GFI] lost 2.63% to R57.87. AngloGold Ashanti [JSE:ANG] shed 1.9% to R134.92.
Most of the major banks traded lower, with Standard Bank [JSE:SBK] losing 0.57% to R165.06 and FirstRand [JSE:FSR] trading 0.59% lower at R55.28; Barclays Africa [JSE:BGA] gained 0.38% to R148.73.
Santam [JSE:SNT] released details on Tuesday on the extent of the claims it received after the severe storm and devastating fires which battered Cape Town and razed parts of the southern Cape, but the share price remained remarkably stable. It closed on a 52-week high of R264.10 on Monday and at mid-morning was only 0.08% softer at R263.90.
Santam chief executive Lizé Lambrechts described the incidents in June as the worst catastrophe event in South African insurance history, but said the insurer had made full provision for claims arising from this in the interim period.
The insurance-related damage is expected to be around R3bn, with Santam clients having already submitted claims totalling R800m. It had a net impact of R234m on the group during the six months ended June 30 2017.
Santam reported gross written premium growth of 14% and a 20.4% return on capital. Headline earnings per share fell 6% to R5.93, largely due to the catastrophic events. Its profit after tax rose 6% to R808m. It hiked its dividend by 8% to R3.36 per share.
Naspers [JSE:NPN] continued to drift sideways and lost 0.28% to R2 887.22. The share price is now almost 4% lower over the past seven days. Richemont [JSE:CFR] was 0.43% up at R115.85, but British American Tobacco [JSE:BTI] shed 0.43% to R805.55. The share lost almost 12% over the past 30 days.
