Independent Newspapers

The JSE. Photo: Simphiwe Mbokazi.

The JSE was relatively weaker at noon on Monday, tracking the European markets ahead of the key announcement regarding the Greek bailout talks.

The gold index remained the only bright spot on the local bourse, boosted mainly by Harmony Gold's results.

The world's fifth-largest gold miner posted record earnings in its second quarter of the financial year.

At noon, the JSE all-share index was down 0.39% to 34,254.25 points. Gold stocks were up 1.71%, but platinum shares were flat (-0.06%) as were resources.

Industrials shed 0.75%, banks lost 0.78% while financials dipped 0.44%.

The rand slipped 7.60 to the US dollar, from the JSE's close on Friday. Gold was quoted at US$1,715.71 a troy ounce from US$1,735.32/oz at the JSE's previous close, while platinum was at US$1,611/oz, from US$1,617.54/oz before.

“There has not been renewed buying interest in our market following a largely positive start to the year. Market players are waiting for the Greek announcement,” said Devin Shutte, market watcher at brokerage, Newstrading.

European stock markets fell on Monday, as market participants paused for breath following Friday's bumper gains and expressed disappointment about Greek debt restructuring talks, which for now seem deadlocked, Dow Jones Newswires reported.

Traders noted that Friday's surprisingly good US employment report saw European equity markets continue their recent gains and head towards their highest levels since the middle of last year, providing investors with an excuse to pause for breath as this week kicks off.

At noon local time, London's FTSE 100 had fallen 0.37% to 5,879.51.

Adding further pressures to sentiment are the Greek debt and bailout negotiations, which have yet to be finalised.

The focus has shifted from the private sector's involvement in negotiations towards the lack of political consensus and whether the interim coalition government will accept the conditions imposed by the “troika” of creditors - the European Union, the International Monetary Fund and the European Central Bank.

In Asian, the Japanese and Australian markets rallied after a surprisingly strong US jobs report aided an upbeat performance for exporters and stocks in the resource sector.

But Hong Kong stocks reversed strong early gains, while mainland Chinese and South Korean stocks ended little changed after a higher opening, amid caution over Greek debt talks.

Japan's Nikkei Stock Average rose 1.1% to 8,929.20 and Australia's S&P/ASX 200 index gained 1.1%, to 4,296.00.

Unable to hang on to early gains, South Korea's Kospi and China's Shanghai Composite finished little changed from Friday, at 1,973.13 and 2,331.14, respectively.

On the JSE, Anglo American (AGL) was down R1.84 to R344, while BHP Billiton (BIL) edged down 43 cents to R263.57 but Sasol (SOL) lifted 54 cents to R399.33.

In gold stocks, AngloGold Ashanti (ANG) lifted R3.21 to R352.71, Gold Fields (GFI) gained R2.78 or 2.22% to R127.97, Harmony Gold Mining rallied R3.21 or 3.45% to R96.31. The gold producer earlier reported a 5% rise in gold production to 344,592oz for the quarter ended December 2011 from 328,162oz in the previous quarter.

In the second quarter of financial year 2012, Harmony generated a record operating profit of R2 billion (US$257 million) and recorded its fifth consecutive quarter of operating cash flow. It reported record headline earnings of about R1 billion (US$129m) and a 155% increase in headline earnings per share to 242 SA cents (30 US cents).

Platinum miner Amplats (AMS) was up R3.04 to R561.13 while Northam Platinum (NHM) gained 24 cents to R33.94.

Among other miners, ArcelorMittal SA (ACL) lost R1.32 or 1.90% to R68.05, but Exxaro Resources (EXX) picked up R2.84 or 1.40% to R206.

In industrials, British American Tobacco (BTI) was up R1.94 to R366.25, while Richemont (CFR) was down 39 cents to R45.35.

Telecommunications group MTN (MTN) fell R3.29 or 2.42% to R132.70. News that Turkcell, which was unsuccessful in attaining the second GSM telecommunications licence in Iran, was looking to bring a case against the South African mobile services provider in a US court, continued to weigh on the stock.

Among banking stocks, Standard Bank (SBK) gave up R1.13 or 1.03% to R108.37, Absa Group (ASA) shed R1.50 or 1% to R148 and Nedbank (NED) was up 57 cents to R159.57. The financial services group said earlier it expected diluted headline earnings per share and diluted basic earnings per share for the year ended December 2011 to be between 23% and 28% higher than the 1,069 cents per share and 1,050 cents per share respectively reported for the comparative period to December 2010.

The group said it had experienced ongoing earnings momentum in the fourth quarter of 2011 underpinned by the group's strategic focus areas of repositioning Nedbank Retail, growing NIR, portfolio tilt and expanding the group's business in the rest of Africa.

African Bank Investments Limited (ABIL, ABL) was up 12 cents to R38.06. The country's biggest micro-lender said it had recorded a solid operational performance in the first quarter ended December 31, 2011, driven by continuing strong sales from new product offerings introduced in 2011.

In addition, the rapid increase in the African Bank footprint through kiosks and carve-outs within Ellerine (EHL) stores had boosted performance, it said. - I-Net Bridge