/ 5 September 2008

JSE extends losses

South African stocks extended losses on Friday, falling by 1,3% at noon in line with overseas markets amid signs of a global economic slowdown, traders said.

At noon, the all-share index was down 1,29%. Resources fell 2,35%, the platinum-mining index lost 1,51% but the gold-mining index recouped 0,44%.

Banks were up 0,54%, while industrials and financials gave up 0,83% and 0,04% respectively.

Gold was last quoted at $794,28 a troy ounce, from $799,27/oz at the JSE’s last close, while the rand was bid at 8.03 to the dollar from 7,93 when the JSE closed on Thursday.

Platinum was last at $1 370,50/oz — down $19,50/oz from its previous close. Brent crude futures were at $105,10 per barrel from a previous close of $106,30.

Traders said the selling was controlled and not excessive, as most counters and stocks were already in exceptionally oversold territories, but the bargain-hunting-induced rebound did not seem sustainable ahead of the weekend.

”Nobody wants to go into the weekend with their money lying on the table. A rebound could happen next week and that will also depend how Wall Street plays out tonight [Friday],” one Johannesburg-based trader said.

Dow Jones Newswires reports United States stock futures pointed to further losses on Wall Street later on Friday ahead of a report likely to show the economy shedding more jobs, with a broker’s recommendation to sell Merrill Lynch & Co also contributing to a pessimistic mood.

S&P 500 futures fell 7,9 points to 1 228,70 and Nasdaq 100 futures fell 7,25 points to 1 768,50. Dow industrial futures dropped 64 points.

Back in Johannesburg, resource giant Anglo American was off R12,50, or 3,61%, to R334 and BHP Billiton was down R5,75, or 2,71%, to R206,55.

Sasol fell R55,2, or 1,45%, to R374,98.

Gold miner AngloGold Ashanti was off 30 cents to R187,90 but Harmony recouped 109 cents, or 1,79%, to R61,89.

Among platinum miners Anglo Platinum shed R8,50, or 1%, to R837,50 and Impala Platinum lost R3,85, or 1,92%, to R196,50.

Steel maker ArcelorMittal was down 197 cents, or 1,19%, to R163,50 and Highveld dipped 50 cents to R129,50.

Elsewhere, brewer SABMiller dropped R3,40, or 2,03%, to R164,10, Richemont was down 107 cents, or 2,31%, at R45,35 and Tiger Brands lost 102 cents to R197,97.

Among banks Standard Bank was 61 cents better at R91,30, Nedbank gained 119 cents, or 1,15%, to R104,69 but Absa slipped 48 cents to R109,85. — I-Net Bridge