/ 22 November 2002

Gold stocks tug JSE lower as rand weighs

The South African stock market opened in negative territory on Friday, tugged by gold stocks on a firmer rand and as investors continued to take profits despite a steady bullion price, dealers said.

Synthetic fuels firm Sasol gave up 0,5% or 60 cents to R112, also on a firmer rand. It was top-traded stock by deals.

At 0820 GMT, the all share index was 0,15% or 14,6 points lower at 9,790.6 points, with losers outpacing gainers 88 to 86.

Gold stocks came under pressure, extending Thursday’s losses despite a steady gold price.

South Africa’s biggest gold producer Anglo Gold lost 3,8% at R524. Peer Gold Fields shed 1,4% to R104,50.

Spot gold was trading at $318,10/8.60 a troy ounce, up from New York’s Thursday close of $317,45.

Volatile technology stocks remained in focus after IT firms Dimension Data and Datatec posted lower earnings on Wednesday and Thursday.

Didata rose 1,23% or five cents to 410 cents. The company posted an 83% drop in annual earnings on Thursday, which were in line with forecasts.

Datatec put on 1,3% or 10 cents to 785 cents, clawing back a little after taking a 20% tumble at one stage on Thursday. The firm reported a 91% dive in its interim earnings on Wednesday, way below analysts’ forecasts.

Banks kept above water, with Standard Bank adding 0,8%or 25 cents to R32.

But Nedcor bucked the trend, shedding 1,7% or 200 cents to R114 after the bank said on Thursday 2002 annual earnings would take a knock from greater bad debt provisions and a stronger rand. – Reuters