/ 10 April 2003

JSE stumbles over stronger rand

The JSE Securities Exchange South Africa (JSE) continued to be pummeled by a considerably stronger local currency and global markets, which were down overnight. Gold stocks, by contrast, got off to a good start on the back of a higher bullion price.

By 0913, the all share and all share industrial indices were 0,72% and 0,85% weaker respectively. Resources retreated 0,65%. Financials dropped 0,91%, and banks were down 0,87%. Platinum mining indices had not moved while the gold mining index soared 2,29%.

The rand was trading at 7,7750 to the dollar from 7,9275 at the New York close, while gold was quoted at $326,07 an ounce from $322,90/oz at the JSE’s last close.

“It has been another very quiet start due to the volatility seen on the Dow last night and also the movements in the rand. Other than gold stocks lifting, trades in other counters have been subdued,” a dealer said.

She continued that while the rand was stronger the effect of this had already been discounted into the market on Wednesday afternoon and so was not helping the financials index.

On the gold mining index, Gold Fields (GFI) gained 3,16% or R2,50 to trade at R81,50, while Harmony (HAR) was up 2,70% or R2,50 at R95.

However, London-listed diversified resources group Anglo American (AGL) shed 1,20% or R1,37 to R112,40, while BHP Billiton (BIL) was 35 cents weaker at R40,90.

Synthetic fuels group Sasol (SOL) slipped 1,83% or R1,55 to R82,95.

Sasol on Wednesday transferred its US American Depository Receipt (ADR) listing from the Nasdaq to the main board of the New York Stock Exchange (NYSE) on Wednesday in a move the group hopes will greatly expand its investor base.

On the all share industrial index, London-listed beverages group SABMiller (SAB) was 2,11% or R1,10 weaker at R51, while Swiss-listed luxury goods group Richemont (RCH) retreated 1,80% or 20 cents to R11,10.

Commercial bank ABSA (ASA) was 1,52% or 47 cents down, while FirstRand (FSR) shed 1,43% or 10 cents at R6,90.

London-listed Old Mutual (OML) was hit 3,89% or 42 cents at R10,38.

Old Mutual plc announced on Wednesday that had entered into an agreement to

buy Sage Life (Bermuda) Ltd, a specialist provider of customised and proprietary annuity products to non-US residents Sage (SGG) continued heading up another 2,58% or 4 cents to R1,56, although the share is now only slightly in the black for the month.

Sage on Wednesday reported core headline earnings for the nine months to end-December 2002 of 65,3 cents per share, compared to a loss of 29,6 cents for the year to end-March 2002. Sage skyrocketed 10,71% or 15 cents to R1,55 at the JSE’s close on Wednesday.

Dow Jones Newswires reports US stocks retreated on Wednesday after the dramatic arrival of US forces in central Baghdad, with many traders having anticipated a military victory and now mulling a weak postwar economic scenario.

Wall Street failed to sustain an early rally, and the blue-chip Dow Jones industrials closed down 100,98 points (1,22%) at 8,197.94. The Standard and Poor’s 500 slipped 12,30 points (1,40%) to 865,99 while the Nasdaq composite tumbled 26,20 points (1,89%) to 1,356.74. – I-Net-Bridge