/ 5 July 2004

JSE inches up in dead-quiet trade

The JSE Securities Exchange (JSE) was marginally stronger in noon trade on Monday, lifted by heavyweight resources stocks that were up offshore. However, the low volumes were the morning’s most noticeable feature and with United States markets closed, were likely to remain so.

By 11.52am, the all-share index was 0,17% better. Resources jumped 0,85% in morning trade, while the gold mining index gained 0,40%. The banks index was 0,40% in the black. Financials were flat (-0,02%), the all-share industrial index dropped 0,47% and the platinum mining index lost 0,52%.

The rand was quoted at R6,15 per dollar from R6,12 when the JSE closed on Friday, while gold was quoted at $398,30 an ounce from $398,40/oz at the JSE’s last close and Friday’s overnight close of $397,43/oz.

“With New York closed today — it was Independence Day yesterday [Sunday] — the market is absolutely dead,” a dealer said.

European markets were also very quiet, with investors choosing to take to the sidelines due to the US holiday.

The dealer added that the gold price was looking pretty good and gold ADRs were up in New York on Friday, so there was some follow-through on the JSE. Heavyweight diversified miners Anglo American and BHP Billiton were up in London, which was helping the local bourse’s cause.

He cautioned that volumes were so light that the bourse’s direction could easily change.

“If Anglo went down one rand, the market would turn negative for sure,” he asserted.

Anglo added 1,05% or R1,29 in morning trade to R124,30 and BHP Billiton bounced 1,6% or 85 cents to R54,10.

AngloGold Ashanti advanced 1,5% or three rand to R203.

Oil and chemicals group Sasol strengthened 80 cents to R98.

Impala Platinum, however, dipped two rand to R464 and AngloPlat eased R1,50 to R232,50.

On the industrial market, cellular network operator MTN Group was up 26 cents at R29,26.

Retailer Edcon rallied 2,32% or R2,51 to R154,50, while Foschini firmed 1,12% or 25 cents to R22,50.

Edcon’s intraday high of R155 was its best level since April 1996.

However, London-listed beverages group SABMiller slumped 2,12% or R1,68 to R77,47 after going ex-dividend of 152,49 cents per share.

Food group Illovo plunged 3,33% or 25 cents to R7,25 after going ex-dividend of 28 cents per share, while Tiger Brands retreated 73 cents to R89,02 after going ex-dividend of one rand per share.

Steel producer Iscor was 1,61% or 62 cents softer at R37,88.

Telecoms group Telkom gave up 68 cents to R79,20.

Financials to firm included Standard Bank, which was 35 cents stronger at R43,25 and FirstRand, which ticked up nine cents to R10,09.

Liberty Group lost 1,43% or 74 cents to R51, while microlender ABIL weakened 1,37% or 17 cents to R12,20. — I-Net Bridge