/ 15 April 2004

JSE tumbles, playing catch-up

The JSE Securities Exchange South Africa (JSE) was awash with red in noon trade on Thursday, playing catch-up with world markets, which were down on Tuesday night and again on Wednesday, when the local bourse was closed for the elections. Weakness was most pronounced at the top end of the market and decliners outnumbered advancers on the Top 40 index by two to one.

At 12.08am, the all-share index was down 1,64%. Resources had plunged 3,19%, with the gold mining index diving 4,01% and the platinum mining index losing 1,63%. The financial and banks indices were 0,95% and 1,71% weaker respectively, while the all-share industrial index had eased 0,23%.

The rand was quoted at R6,59 per dollar from R6,53 when the JSE closed on Tuesday, while gold was quoted at $396,88 an ounce from $406,90/oz at the JSE’s last close.

“I think most of today’s weakness is catch up with what world markets did over the past couple of days. New York took a smack on Tuesday night and gold stocks were down over 5%,” a dealer said.

European markets lost ground on Wednesday, while bourses in Asia were down on Wednesday and again on Thursday.

“The rand is a bit weaker, which has given the market a bit of support and the JSE hasn’t gone down as much as I thought it would,” the dealer continued.

However, he expressed surprise at the weakness in platinum stocks, in light of the robust platinum price and the weaker rand.

London-listed diversified resources group Anglo American, the JSE’s heaviest weighted stock, was 3,33% or R5,30 weaker at R153,85

and BHP Billiton plummeted 4,88% or R2,95 to R57,50.

AngloGold plunged 3,98% or R9,80 to R236,20, Gold Fields surrendered 3,69% or three rand to R78,20 and Harmony slid 4,8% or R4,16 to R82,50.

AngloPlat weakened 1,98% or R5,50 to R272 and Impala shed 1,45% or R7,50 to R510.

On the industrial market, Swiss-listed luxury goods group Richemont was 12 cents stronger at R17,82.

Media group Naspers soared 4,47% or two rand to R46,70 and hospital group Netcare jumped 2,05% or 10 cents to R4,98.

London-listed beverages group SABMiller, however, slipped 1,62% or R1,20 to R73.

Cellular network operator MTN Group gave up 3,15% or R1,10 to R33,80 and furniture group Steinhoff shed 2,94% or 25 cents to R8,25.

While Sanlam, the country’s second-largest financial services group, climbed two cents to R9,78, London-listed Old Mutual, the largest, was down 1,05% or 13 cents at R12,31.

Banking group FirstRand fell 1,95% or 20 cents to R10,05, Absa slumped 1,96% or 95 cents to R47,50, Nedcor dropped 1,79% or R1,10 to R60,40 and Standard Bank was off 1,52% or 66 cents at R42,85. — I-Net Bridge