The JSE Securities Exchange South Africa (JSE) followed weaker global markets and opened in the red on Monday, although losses were pared by a rise in gold counters. Gold shares firmed on the back of the bullion price, which moved above $370 an ounce ahead of the UN weapons report on Iraq this afternoon.
The last time the precious metal was at these levels was in December 1996.
By 0915 the all share index was 0,93% weaker, the industrial index surrendered
1,37%, the financial index had moved 1,16% lower, the resources index fell 0,68%, the platinum index dipped 0,17% and the information technology (IT) index gave up 1,54%. The gold index, however, jumped 1,50%.
The rand was trading at 8,7250 to the dollar from Friday’s close of 8,7500 while
spot gold was quoted at $369,70/oz from the previous close of $368,18/oz.
“The lower opening on the JSE was largely anticipated by the market on the back of the weakness coming through on the Dow on Friday and on the Nikkei this morning. The rand is also holding onto pretty good levels and this is placing some pressure on the dual-listed stocks,” a dealer said.
In early trade resources heavyweight Anglo American (AGL) fell 1,93% or R2,45 to
124,55 and BHP Billiton (BIL) gave up 2,87% or R1,25 rand to R42,25.
Gold shares, however, were making merry on the back of the higher gold price. Gold Fields (GFI) added 1,64% or R2.11 to R131,10, AngloGold (ANG) gained 1,56% or R5,10 to R331,10 and Harmony (HAR) picked up 1,01% or R1,55 to R152,55.
Among industrial counters SABMiller (SAB) shed 2,08% or R1,21 to R57, Richemont (RCH) declined 2,31% or 34 cents to R14,41, Barloworld (BAW) weakened
1,23% or 66 cents to R53 and Sappi (SAP) dipped 1,01% or R1,28 to R125,22.
Banking counters lost ground in early trade, with Standard Bank (SBK) falling 2,97%
or 86 cents to R28.05, Nedcor (NED) slid 2,32% or R2,55 to R107,45, Absa (ASA)surrendered 1,21% or 40 cents to R32,60.
Specialist banking group Investec plc (INP) lost 2% or R2,20 to R108,00 and
financial services group Old Mutual (OML) was 1,74% or 20 cents weaker at R11,30.
Dow Jones reports that Wall Street slid to its lowest levels in three months on Friday, with the Dow Jones Industrial Average (DJIA) closing at 8,131.01 points, down 238,46 or 2,9%. War anxieties and a brokerage downgrade of insurance giant American International Group sparked fears of a faltering economy in the coming months.
Analysts say many investors wanted to dump shares ahead of Monday’s key report by UN officials on arms inspections in Iraq and President Bush’s State of the Union address on Tuesday. Their comments are expected to signal whether war is imminent.
In Asia Monday, the Tokyo Nikkei 225 ended at 8,614.47 points, down 117,18 or 1,3%. – I-Net Bridge