The JSE Securities Exchange South Africa headed south in morning trade on Wednesday, dragged down by weaker world markets and a stronger rand.
Gold stocks dominated on the upside of the market, playing catch-up after a strong performance in the US overnight. At 1143, the all share index was down 0,64% and the all share industrial index was 0,84% weaker. Financials were 0,67% in the red. The resources index retreated 0,49%, with the platinum mining index surrendering 1,99%. The IT index tumbled 3,85%.
The rand was trading at 8,4100 to the dollar from 8,4450 when the JSE closed on Tuesday, while gold was quoted at $362,70 an ounce, little changed from the JSE’s last close.
“The market is taking a bit of a pounding. Some of it is the stronger rand. The JSE is also following international markets. The DAX and the FTSE are both looking really bad,” a dealer said.
He added that futures baskets were also coming through, so buyers didn’t have to struggle to get stock.
London’s FTSE 100 was down around 1,25%, while Frankfurt’s Xetra DAX was down almost 2%.
London-listed diversified resources group Anglo American (AGL) was down 1,64% or R2,05 at R122,65. It was down a similar amount in the UK. BHP Billiton (BIL), down 0,65% in the UK, dipped 20 cents on the JSE to
trade at R41,60.
Swiss-listed luxury goods group Richemont (RCH) was 1,10% or 15 cents weaker at R13,45. It had fallen over 2% in Zurich.
On the financial index, London-listed Old Mutual (OML) was down 1,28% or 15 cents at R11,55 on the JSE. Its losses in London were more than double this. Investec was once again taking punishment, with Investec Plc (INP) and Investec Ltd (LTD) both losing 1,66% or R1,50 to R89.
Investec Plc traded as low as R84 and Investec Ltd was down to R83,80
at one stage. The falls mark another one-year low for the shares which are down in the region of 14% this month.
“People got scared when Investec hit certain key levels and there was some panic selling in Investec,” the dealer explained.
On the JSE’s IT index, London-listed Dimension Data (DDT) plunged 6,65% or 21 cents to R2,95. It was down by a similar amount in London.
Datatec (DTC) also had a woeful morning and was 5,05% or 25 cents weaker at R4,70. While the gold price was little changed overnight, gold companies’ ADRs climbed in the region of 5% and this saw the gold-mining index lead the JSE’s upside.
Gold Fields (GFI) gained 2,71% or R2,75 to R104,25, AngloGold (ANG) advanced 4,06% or R11 to R282 and Harmony (HAR) was 2,75% or R3,25 higher at R121,25.
A number of company’s reported results on Wednesday.
Impala Platinum (IMP) was down 1,37% or eight rand at R5,78 after this morning reporting an 8,2% decline in basic headline earnings per share, to 3 042 cents for the six months ended December 31, 2002 from 3,315 cents a year ago, as a result of the strong rand.
An interim dividend of 900 cents per share was declared from 1 100 cents previously, which amounted to a total dividend payout to shareholders of R600-million.
Analysts expected Implats to deliver headline earnings per share of 3 150 cents and a dividend per share of 1 080 cents, according to an I-Net Bridge poll.
AngloPlat (AMS) was down 3,19% or R11 at R334 but Northam (NHM) was 3,15% or 55 cents stronger at R18.
Liberty International (LBT) was off 50 cents at R76. The UK property group, which has a secondary listing in South Africa, reported a 10% increase in basic earnings per share from 25,89 pence to 28,54 pence for the year to the end of December.
Cashbuild (CSB) on Wednesday reported a sparkling set of interim results, with headline earnings up 187% for the 26 weeks ended December 28 2002. Headline earnings per share rose to 104,6 cents from 36,4 cents the same period a year ago. The company declared an interim dividend of 25 cents after the board decided to change its dividend policy to allow for continued future interim dividends.
This saw it rocket 12,77% or R1,20 to R10,60, making it one of the morning’s best performing shares. – I-Net-Bridge