/ 15 October 2004

JSE down on strong rand, world markets

The JSE Securities Exchange was lower on Friday due to the stronger rand and lower global equities, traders said.

By 12.15am, the all share and all share industrial indices were 0,51% and 0,18% softer respectively. Resources were down 1,04%, the platinum mining index slumped 0,09% and the gold mining index eased 0,76%. The financial index fell 0,14% and banks index dropped 0,16%.

The rand was quoted at 6,4953 per US dollar from 6,55 when the JSE closed on Thursday, while gold was quoted at $418 a troy ounce from $416,60/oz when the JSE last closed.

Global resources group BHP Billiton was last quoted at R66,55, down 97 cents or 1,4% from its previous close, while Anglo was quoted at R146,80, down 210 cents or 1,4%.

In the gold sector, world number two gold miner AngloGold Ashanti was at R236, down 26 cents or 0,1% from its Thursday close, Gold Fields was quoted at R90,30, down 59 cents or 0,7%, while Harmony was quoted at R82,98, down 143 cents or 1,7% from its previous close.

The gold sector has been rife with rumours that Russia’s Norilsk Nickel is planning a takeover bid for Gold Fields or that the group may be seeking to up its stake in Gold Fields. Earlier in 2004, Norilsk bought Anglo’s 20% stake in Gold Fields for about $1,2-billion.

However, an equity broker said at this stage, he did not expect Norilsk to make a move to up its stake in Gold Fields yet.

With resources under pressure, a sector that investors may rotate funds into would be industrial stocks such as logistics group Imperial and Bidvest, a broker said.

Imperial was last quoted at R85,20, while Bidvest was four cents higher at R63,15.

In the platinum sector, Anglo Platinum was quoted at R253, down 100 cents or 0,4% from its previous close.

On Thursday, the National Union of Mineworkers accepted AngloPlat’s revised wage offer and all its members are set to return to work by the Friday afternoon shift, which starts at 2pm.

NUM members at AngloPlat started to strike on October 1, after wage talks broke down.

In the financial sector, Absa was quoted at R64,60, up 10 cents from its previous close, while Nedcor added 60 cents to be last quoted at R62,20.

UK banking group Barclays is currently in discussions with various parties about making a bid for a controlling stake in Absa.

South African food and pharmaceutical group Tiger Brands was last quoted at R103, up 80 cents from the stock’s previous close of R102,20. Earlier, Tiger Brands touched R103,50 — an all-time high.

On Monday, Tiger Brands will unbundle its retail business Spar. – I-Net Bridge