/ 29 January 2004

JSE marches to rand’s beat

The JSE Securities Exchange South Africa (JSE) was marginally weaker in noon trade on Thursday after a roller-coaster morning on which the bourse took its cue primarily from a volatile rand. Weaker world markets were also weighing, dealers said.

At 12.06pm, the all-share index was off 0,14%. Resources retreated 0,44% in morning trade, the gold mining index fell 0,77% and the platinum mining index surrendered 1,24%. Industrials were flat (+0,03%), while the financial and banks indices firmed 0,44% and 0,55% respectively.

The rand was quoted at R6,96 to the dollar, little changed from when the JSE closed on Wednesday, after earlier going as weak as R7,07. Gold was quoted at $411,13 an ounce from $410,80/oz at the JSE’s last close.

“The main driver is the rand, which has been all over the place. World markets are under pressure and that is having an effect as well,” a dealer said.

London-listed Anglo American was down R1,20 at R160,01 and BHP Billiton lost 1% or 59 cents to R58,21.

AngloGold gave up 1,18% or R3,48 to R292,01, Harmony weakened 1,4% or R1,57 to R110,93 and Gold Fields dipped 51 cents to R94,10. Junior miner Durban Roodepoort Deep (DRD) was unchanged at R26.

Before the opening, Gold Fields reported net earnings per share, excluding exceptional items, for the December quarter of 23 cents from 29 cents in the September quarter.

Analysts had expected Gold Fields to report net earnings of 26 cents.

Gold Fields reported headline earnings per share of 51 cents from 35 cents previously, while December quarter operating profit was R545-million from R570-million in the September quarter.

DRD reported headline earnings per share of 3,9 South African cents for the December quarter, up from a 24,4-cent loss in the September quarter.

The group’s quarterly operating profit was R94,7-million, from a R21-million loss previously.

“Overall, the results from both companies were not great, mainly due to the rand,” the dealer commented.

AngloPlat plunged 2,85% or R10 to R341.

On the industrial market, Swiss-listed luxury goods group Richemont dipped seven cents to R17,58 and London-listed beverages group SABMiller slipped 20 cents to R68.

London-listed IT group Dimension Data was down 2,61% or 15 cents at R5,60 and retailer Metcash tumbled 4,44% or 11 cents to R2,37.

Banking group Nedcor was 65 cents softer at R65,20.

On the JSE’s upside, synthetic fuels group Sasol surged 1,95% or R1,99 to R104.

Media group Naspers notched up 2,52% or 10 cents to R44,70, cellular network operator MTN Group jumped 1,64% or 50 cents to R31 and food group Tiger Brand ticked up 1,01% or 81 cent to R81,31.

Pulp and paper producer Sappi was 60 cents stronger at R97.

London-listed financial services group Old Mutual bounced 1,36% or 16 cents to R11,96 after gaining ground in the United Kingdom.

Standard Bank strengthened 30 cents to R39,60, FirstRand firmed three cents to R8,95 and Absa advanced 1,18% or 51 cents to R43,91. — I-Net Bridge