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Johannesburg - By Tuesday midday the All-share and Top 40 indices were only marginally higher as the big resources shares, which all reached new 52-week highs recently, traded modestly lower as the rand also stabilised.
The local unit, which traded as low as R13.79 to the dollar on Monday, was 0.25% stronger at R13.73 making rand hedge shares, which earn most of their income in dollar, less attractive.
Share prices in New York were also modestly lower on Monday night and the strong run in the Chinese market was hampered by modest profit-taking on Tuesday.
The All-share index was only 0.03% higher at 57 547 points by mid-morning, although it was still on a new all-time high. The Top 40 index was 0.06% down at 51 294 points and the Industrial index, which is also at record levels, was only 0.12% higher.
The Resources index, which closed on a 52-week high on Monday, was however 0.41% lower by mid-morning with top shares like Anglo American [JSE:AGL] and BHP [JSE:BIL] modestly lower from the previous day’s 52-week highs.
Anglo American, which gained more than 7% over the previous seven days, was 0.98% softer at R257.63. BHP, which only reached a 52-week high on Monday, was a modest 0.03% softer at R250.92. Glencore [JSE:GLN], which started to lose ground on Monday, shed 1.12% to R65.32.
Naspers [JSE:NPN], the biggest share on the JSE which represents 17% of the Industrial index, was a modest 0.18% lower at R3 154.82 at mid-morning after gaining almost 10% over the previous seven days to a new all-time high.
Other big shares were modestly higher. British American Tobacco was 0.07% higher at R874.00 and Richemont [JSE:CFR] traded 0.62% stronger at R125.74.
Sasol [JSE:SOL], which gained more than 7% over the previous seven days, was also lower and lost 0.23% to R395.36.
The big mover of the day was Famous Brands [JSE:FBR], which was 12.25% softer at R103.72 on news that its British subsidiary Gourmet Burger Kitchen is expected to suffer a loss in the current financial year and only return to profitability next year.
Famous Brands shed more than 16% earlier and traded as low as R98.20.
The loss in the current financial year is primarily attributable to the prevailing adverse trading environment in Britain. The company said interventions currently being implemented in the business will have a positive impact on future performance.
The group’s South African businesses will, however, report satisfactory improvement in profit before interest and tax despite difficult trading conditions.
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