/ 26 March 2003

SE drifts weaker in lethargic market

The JSE Securities Exchange South Africa (JSE) drifted into the red on Wednesday morning in lethargic trade. Gold stocks were prominent among the decliners on the back of a softer bullion price and the relatively firm rand was doing little to help the local bourse, dealers said.

At 1208, the all share and all share industrial indices were 0,38% and 0,24% weaker respectively. Financials surrendered 0,54% in morning trade, while the banks index moved back 0,52%. Resources retreated 0,39%, while the gold mining index tumbled 1,79%. On the upside, the platinum mining index bounced 0,34%.

The rand was trading at 8,0350 to the dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $329 an ounce from $332,70/oz at the JSE’s last close.

“The JSE is weaker and the slightly firmer rand is not helping. Gold shares have come off quite a bit — at their weakest they were down 2,5%, although they are now down 1,8%,” a dealer said.

He added that the war in Iraq was creating a lot of uncertainty in the market and noted that volumes were low, with only R600-million worth of shares changing hands.

While the rand was little changed from Tuesday, it had been trading as weak as the low 8,20s on Monday.

Leading the downside of the market was synthetic fuels group Sasol (SOL), which slipped 2,15% or R1,91 to R86,79.

Swiss-listed luxury goods group Richemont (RCH) was 1,74% or 21 cents weaker at R11,83. On the gold mining index, Gold Fields (GFI) shed 1,98% or R1,60 to R79,40. Harmony (HAR) was 2,64% or R2,55 weaker at R94,20, while AngloGold (ANG) lost 1,69% or four rand to R233. Decliners dominated advancers on the financial index by three to one.

Remgro (REM) led the downside, losing 2,15% or R1,18 to R53,80. With the exception of Nedcor (NED), which was up 69 cents at R90,10, commercial banks were under pressure. Standard Bank (SBK) was down 13 cents at R26,92, while Absa(ASA) retreated 2,12% or 65 cents to R30.

FirstRand (FSR) fell two cents to R6,55. The worst performer on the all share index was life assurer Sage (SGG), which slumped 9,38% or 15 cents to R1,45. The group said after the JSE’s close on Tuesday that negotiations for the disposal of its US operations had not yet been concluded. While prolonged negotiations for the disposal of its wholly-owned Bermudan operations were at an advanced stage, they had not yet been concluded, so Sage had attributed a nominal value of one rand to the investment.

Leading the upside of the JSE on Wednesday was diversified resources group BHP Billiton (BIL), which climbed 30 cents to R41,60. It was followed by AngloPlat (AMS), which advanced 2,51% or six rand to R245. – I-Net Bridge