/ 21 October 2005

JSE follows Wall Street weaker

The JSE was weaker in noon trade on Friday following sharp losses on Wall Street overnight. A slight intraday firming of the rand also played a role, dealers said.

By 11.54am, the all-share index slipped 0,68%. Resources retreated 1,63%, with the gold- and platinum-mining indices losing 1,31% and 1,18% respectively. The all-share industrial index eased 0,2%. Financials firmed 0,13%, however, and the banks index was 0,5% better.

The rand was bid at R6,58 per dollar from R6,57 when the JSE closed on Thursday, while gold was quoted at $463,10 a troy ounce from $462,45/oz at the JSE’s last close.

“The market is not looking great at all,” a dealer said. “We did follow the [United] States, which was down last night, even though Eastern markets held up. Europe is also down today.”

He added that the rand, which was above R6,60 earlier in the morning, had also played a role, weighing on resources stocks but lifting banks.

The dealer said that the rand had firmed slightly on comments by South African Reserve Bank Governor Tito Mboweni that suggested an interest-rate hike was on the cards.

Volumes on the JSE were reasonably thin, the dealer noted.

“It’s a bit of a blue Friday. People don’t want to get involved in the market — a lot of guys have made their profits and seem to be staying out.”

Leading the JSE’s downside, petrochemicals group Sasol slumped 3,51% or R7,45 to R205,05.

Global resources group BHP Billiton slipped 1,69% or R1,60 to R92,90 and Anglo American weakened R1,50 to R178,90.

The dealer said that although the gold price had perked up a bit, this had not helped gold stocks.

Harmony tumbled 2,09% or R1,40 to R65,60, Gold Fields fell 70 cents to R87,50 and AngloGold Ashanti shed 1,29% or R3,50 to R267.

AngloPlat slipped 1,48% or R5,39 to R360 and Impala was off 1% or R6,99 to R691.

Industrials to decline included brand-management group Barloworld, which was 65 cents in the red at R105,35.

Hospital group Netcare weakened three cents to R6,45.

Transport and logistics group Imperial tumbled 2,23% or R2,76 to R120,74 and retailer JD Group gave up 2,22% or R1,50 to R70,35.

Cement producer PPC, however, strengthened 1,6% or R4,50 to R286,50 and Mittal Steel was up 25 cents at R49,50.

Media group Naspers climbed 40 cents to R97,90.

Financials to fall included specialist bank Investec Limited, which dived 4,26% or R10 to R225 after a strong rally on Wednesday.

Health and life insurer Discovery lost 2,34% or 48 cents to R20.

Investment company Remgro was 1% or R1,07 in the red at R106.

Life assurer Sanlam, however, strengthened 1,06% or 13 cents to R12,35. Liberty Group gained 1,6% or one rand to R63,50.

FirstRand rose 1,18% or 18 cents to R15,48, Standard Bank was 25 cents better at R67,50 and Absa added 30 cents to R86. — I-Net Bridge