/ 7 October 2005

JSE extends losing streak

After opening in the black, the JSE surrendered its gains on Friday morning, extending its losing streak into a third day. The bourse’s weakness was in line with the global trend.

By 12.05pm, the all-share and all-share industrial indices shed 0,85% and 1,08% respectively. Financials fell 0,52% and the banks index weakened 0,57%. Resources retreated 0,83% and the platinum-mining index lost 0,41%, but the gold-mining index gained 1,1%.

The rand was bid at R6,55 per dollar from R6,52 when the JSE closed on Thursday, while gold was quoted at $472,46 a troy ounce from $471,25/oz at the JSE’s last close.

“The market started positive, but has gone into negative territory. There was no reason it should have been up,” a dealer said.

He added that the JSE was just following the trend on global markets. There was negative sentiment towards equities worldwide.

The dealer said that gold stocks were higher following a strong run by their ADRs in the United States overnight. Gold ADRs were boosted by the gold price, which rallied on the back of a weaker dollar. The gold price remained “spunky” and the rand relatively weak, which continued to support gold shares.

Global resources group BHP Billiton led the JSE’s downside, sliding 1,48% or R1,45 to R96,25. It was down almost 3% in London.

Petrochemicals group Sasol tumbled 2,21% or R4,95 to R219,05.

Anglo American was down a modest 10 cents at R188,40, while Impala Platinum dipped R1,51 to R698,50.

Mittal Steel slumped 2,75% or R1,50 to R53 and Hiveld slumped 3% or R1,70 to R54,90. Iron-ore miner Kumba eased 20 cents to R94,80.

AngloGold Ashanti, however, advanced 2,21 or six rand to R277 and Harmony was 1,41% or 99 cents higher at R71.

London-listed brewer SABMiller weakened 1,2% or R1,48 to R121,60.

Pulp and paper producer Sappi surrendered 3,2% or R2,30 to R69,50 and food group Tiger Brands fell 1,01% or R1,40 to R136,60.

Media group Naspers dropped 2,76% or R2,70 to R95,30 and cellular network operator MTN Group gave up 1,04% or 50 cents to R47,80.

Retailers were under pressure, with Pick ‘n Pay slipping 2,53% or 71 cents to R27,30. Massmart plunged 3,16% or R1,68 to R51,50 and JD Group was down 2,53% or 71 cents at R72,75.

Transport and logistics group Imperial, however, climbed 75 cents to R125,75.

London-listed financial services group Old Mutual fell 15 cents to R15,70. Sanlam, however, firmed eight cents to R12,48 and Liberty Group jumped 1,63% or one rand to R62,50.

Nedbank weakened 1,61% or R1,45 to R88,50, Standard Bank shed 35 cents to R67,80 and FirstRand was seven cents in the red at R15,95. Absa eased 20 cents to R89,30.

Specialist bank Investec plc slid 1,98% or R4,80 to R238.

Investment company Remgro rose 50 cents to R106,50 and London-listed real-estate group Liberty International plc was 44 cents in the black at R112,80. — I-Net Bridge