Resources were leading the JSE Securities Exchange (JSE) into the red in noon trade on Wednesday after Dresdner KW downgraded the mining sector to “underweight” from “neutral”. However, weakness on the local bourse was widespread as players took profits on the back of softer world markets. Decliners outnumbered advancers on the all-share index by almost two to one.
At 11.57pm, the all-share index was 0,92% weaker. Resources retreated 1,67% in morning trade, with the gold and platinum mining indices giving up 1,68% and 1,17% respectively. The all-share industrial index lost 0,33%. Financials fell 0,18%, but the banks index was 0,33% in the black.
The rand was trading at R7,46 to the dollar from R7,48 when the JSE closed on Tuesday, while gold was quoted at $381,10 an ounce from $380,20/oz at the JSE’s last close.
“Resources are under a bit of pressure. Dresdner downgraded all the heavies and although the shares have come off their lows, they are still taking a bit of strain,” a dealer said.
London-listed diversified resources group Anglo American was down 1,94% or R2,75 to R139,00 and BHP Billiton was off 2,24% or R1,17 at R51,00.
Dresdner downgraded Anglo to “reduce” from “add”. BHP Billiton is Dresnder’s top pick of the major miners with a “hold” rating.
The dealer continued that there had been some profit taking on the JSE after Tuesday’s strength, triggered by the slowdown in world markets.
On the gold mining index, Gold Fields plunged 2,45% or R2,71 to R107,69 and AngloGold lost 2,35% or R7,20 to R298,80.
AngloPlat was off 1,35% or R4,00 to R293,00 and Impala slipped 1,47% or R9,00 at R604,00.
After rocketing 8,64% on Tuesday on the back of a better-than- expected trading statement, Swiss-listed luxury goods group Richemont was 1,48% or 23 cents weaker at R15,36.
London-listed IT group Dimension Data dived 5,08% or 19 cents to R3,55 and cellular network operator MTN Group dipped 15 cents to R18,05.
Retailer Metcash tumbled 2,33% or five cents to R2,10.
London-listed financial services group Old Mutual fell 1,53% or 19 cents to R12,21.
On the JSE’s upside, Standard Bank was 1,4% or 45 cents stronger at R3,55.
Services group Bidvest was 1,84% or 79 cents stronger at R43,80.
AngloVaal Industries advanced 2,7% or 44 cents to R16,75.
Before the opening, AVI reported a 26% increase in final headline earnings per share to 196,1 cents for the year to June 2003 from 155,7 cents previously.
The group declared a dividend per share of 80 cents, up 51% from 53 cents.
Durban Roodepoort Deep bucked the weaker trend on the resources index, rallying 2,62% or 60 cents to R23,50. — I-Net Bridge