/ 20 July 2005

Profit taking, rand drag JSE down

The JSE was weaker just before noon on Wednesday due to profit taking following the bourse’s strong run earlier in the week. A slightly firmer rand exacerbated the negativity.

By 11.54am, the all share index shed 0,35%. Industrials lost 0,71%, financials fell 0,57% and the banks index was 0,67% in the red. While the gold and platinum mining indices weakened 0,15% and 0,64% respectively, resources — propped up by heavyweights BHP Billiton and Anglo American — rose 0,18%.

The rand was bid at 6,65 per dollar from 6,72 when the JSE closed on Tuesday, while gold was quoted at $420,80 a troy ounce from $420,65/oz at the JSE’s last close.

“It has been a poor day. The rand is stronger and we are seeing some profit taking — the market has run hard over the past two days,” a dealer said.

Were it not for BHP Billiton and Anglo American’s gains, the market would have been considerably weaker.

BHP Billiton led the upside, jumping 1,56% or R1,36 to R88,61. It was up over 3% in London, boosted by a positive second quarter performance by Rio Tinto.

Anglo American bounced 80 cents to R154,80 after coming under pressure on Tuesday.

Other advancers included gases and welding products group Afrox, which added 1,44% or 34 cents to R24.

Transport and logistics group Imperial picked up 60 cents to R115,60 and retailer Foschini firmed 1,07% or 45 cents to R42,60 after trading at a lifetime high of R46,95.

Banking group Absa, which traded at yet another record high of R91,50, was 1,78% or R1,60 in the black at R91,30.

Life assurer Liberty Group gained 1,25% or 75 cents to R60,55 and Sanlam was six cents stronger at R11,89.

On the downside, petrochemicals group Sasol slipped 1,85% or R3,75 to R198,50.

Impala Platinum was off four rand at R614 and AngloPlat lost R1,70 to R303,30.

Swiss-listed luxury goods group Richemont retreated 23 cents to R23,15. London-listed brewer SABMiller eased one rand to R112,70 after rocketing over 9% on Tuesday on news that it was acquiring a controlling interest in Bavaria SA in Latin America.

Pulp and paper producer Sappi shed 2,59% or R1,89 to R71,10 and Mittal Steel was 1.,5% or 85 cents softer at R50,26.

Cellular network operator MTN surrendered 1,75% or 85 cents to R47,70, while Telkom gave up 1,14% or R1,35 to R117,30.

Media group Naspers dropped 1,97% or R1,80 to R89,60.

Nedbank tumbled 2,24% or R1,89 to R82,60 and RMB Holdings was off 2,34% or 59 cents to R24,61.

Microlender ABIL was 1,04% or 20 cents in the red at R19.

London-listed financial services group Old Mutual was seven cents in the red at R15,08. – I-Net Bridge