/ 1 June 2004

JSE weaker on rand, lack of interest

The JSE Securities Exchange South Africa (JSE) was in negative territory in noon trade on Tuesday, led by heavyweight dual-listed stocks which were dragged down by the stronger rand. Trade was thin — just more than half-a-billion-rand-worth of shares had changed hands — and lack of buying interest contributed to the weakness.

By 11.55am, the all-share and all-share industrial indices were down 0,73% and 0,88% respectively. Financials fell 0,68% and the banks index was 0,71% in the red. Resources retreated 0,62%, the platinum mining index eased 0,34%, but the gold mining index gained 0,45%.

The rand was quoted at R6,46 per dollar from R6,52 when the JSE closed on Monday, while gold was quoted at $396,35 an ounce from $395,45/oz at the JSE’s last close.

“We thought we would go up this morning, but the rand just gave us a kick in the pants,” a dealer said. “Futures were up, but while we were waiting for the market to open, the rand firmed and futures dropped straight away.”

He explained that selling had spread from the rand hedges to the rest of the market.

“Volumes are absolutely miserable. Hopefully, the [United] States will provide some action. There is so little interest at the moment and when that happens, the market tends to drift weaker.”

London-listed diversified resources group Anglo American lost 1,44% or R1,99 to R136 and BHP Billiton slid 1,08% or 60 cents to R54,90.

AngloPlat eased R1,39 to R241,21 and Impala dipped 99 cents to R479.

Gold stocks were up slightly, helped by what the dealer described as the “spunky” bullion price.

Gold Fields firmed 41 cents to R77,50, Harmony was 40 cents higher at R78,90 and AngloGold Ashanti added one rand to R229.

Oil and chemicals group Sasol was 55 cents in the black at R101,30.

Swiss-listed luxury goods group Richemont plunged 3,49% or 60 cents to R16,60 and London-listed beverages group SABMiller tumbled 2,02% or R1,60 to R77,60.

Telecoms group Telkom weakened 70 cents to R77,50.

Cellular network operator MTN Group, on the other hand, climbed 30 cents to R30,80.

Packaging group Nampak was 1,06% or 15 cents stronger at R14,35 and brand management group Barloworld was 30 cents better at R69,50.

Retailer JD Group jumped 2,22% or 90 cents to R41,50.

Transport company Super Group soared 3,77% or 40 cents to R11 after it reported a 21% increase in headline earnings per share (Heps) to 123,8 cents from 102,7 cents last year.

The group declared a dividend per share (DPS) of 32 cents from a previous 28 cents. According to an I-Net Bridge consensus forecast, analysts had expected Heps of 117 cents and a DPS of 31 cents.

Financials to fall included London-listed Old Mutual, which was 1,39% or 16 cents lower at R11,35. Liberty Group lost 1,87% or one rand to R52,60.

Banking group Absa slipped 1,32% or 63 cents to R47,27, Nedcor weakened 49 cents to R62,20, FirstRand shed eight cents to R10,10 and Standard Bank was off 20 cents at R41,80.

Sanlam, however, ticked up three cents to R8,95. — I-Net Bridge