/ 22 October 2003

JSE lower at noon; resources weigh

The JSE Securities Exchange South Africa (JSE) was lingering in the red at midday on Wednesday, with resources and platinum counters the main culprits on the downside, although gains in gold stocks limited the overall losses. The slightly firmer rand was also weighing on many dual-listed shares.

At 12.07pm the all-share index was 0,11% weaker, the all-share industrial index was flat (-0,03%), the resources index was 0,33% softer and the platinum index was 1,42% in the red. However, the gold index advanced 2,38%, the financial index added 0,20% and the banks index was 0,73% stronger.

The rand was trading at R7,08 to the dollar from R7,12 when the JSE closed on Tuesday, while gold was quoted at $382,55 an ounce from $377,60/oz at the JSE’s last close.

“The market is mostly lower this morning, much in line with the trend on global markets. The rand has ticked firmer over the trading session and this is exerting pressure on resources and platinum counters, although golds are holding up well in tandem with the rise in the bullion price,” a dealer said.

Losses in resources heavyweights Anglo American and BHP Billiton dragged the market down, with Anglo shedding R1,20 to R139,80 while BHP Billiton gave back 1,61% or 90 cents to R55,00. Sasol lost 85 cents to R87,35.

Impala was also under pressure, losing 2,15% or R13 to R593, and AngloPlat fell 99 cents to R285,01.

Old Mutual slumped 1,38% or 17 cents to R12,15 and FirstRand shed 3 cents to R8,10.

Among dual-listed industrial shares Richemont dipped 10 cents to R15,45, SABMiller was 28 cents weaker at R58,50 and Sappi fell 30 cents to R92,60.

Gold shares dominated the upside, with Gold Fields jumping 2,43% or R2,50 to R105,50, AngloGold added 2,58% or R6,99 to R278 and Harmony firmed 2,28% or R2,40 to R107,50.

Avgold firmed 1,43% or 15 cents to R10,65. The company this morning reported a headline loss per share of 12 cents for the September quarter from a two cent profit in the June quarter. However, headline earnings per share before unrealised non-hedge derivatives rose to six cents in the September quarter from two cents in the June quarter.

Other advancers included MTN Group, which surged 2,46% or 52 cents to R21,65, and Barloworld, which added 1,00% or 60 cents to R60,60.

Demand was also seen for Absa and Standard Bank, with the former adding 1,61% or 61 cents to R38,60, while the latter gained 1,32% or 45 cents to R34,50. — I-Net Bridge