/ 27 October 2005

JSE down slightly, Anglo dominates

After firming earlier in the session on Thursday, the JSE was lower at midday, with global resources giant Anglo American continuing to dominate trade. Trade in Anglo — 2,6-million shares valued at R522,8-million in 68 deals — made up a quarter of the JSE’s total volume.

The weaker tone was despite the softer rand, which is trading above the 6,70 per dollar level.

By 12.30pm, the all share and industrial indices were each down 0,21%. The financial index was off 0,51% and banks shed 0,71%. The resources index was virtually unchanged, but the gold mining index was off 2,41%. The platinum mining index was up 0,53% against the general trend.

The rand was bid at 6,72 per dollar from 6,68 when the JSE closed on Wednesday, while gold was quoted at $473,35 a troy ounce from $472,73/oz at the JSE’s last close.

An equity analyst said the JSE had been rather erratic.

“A week ago we had three good days which took us within striking distance of a new high. So what we are seeing now is a bit of a retracement. There is still caution in overseas markets and this is likely to continue until there is some certainty about whether higher US interest rates are going to affect corporate results.”

“There has been huge trade in Anglo’s, but not much else. Anglo’s trade constitutes 25% of the today’s volume,” an equities trader said.

Anglo was up 1,8% or R3,50 at R198,20, following its 4,42% rise on Wednesday, but BHP Billiton was down 78 cents to R98,03.

Anglo on Wednesday revealed plans to rationalise and simplify its portfolio and structure, as well as to increase focus on controlled mining businesses. Part of the plans includes reducing its stake in AngloGold Ashanti, establishing unlisted pulp and paper group Mondi as an independent business and disposing of Highveld Steel and Vanadium.

Overnight Billiton reported record quarterly copper and nickel production in the quarter ended September, but petroleum volumes were impacted by hurricane related production disruptions in the Gulf of Mexico and unplanned outages at North West Shelf in Australia.

Among gold counters, AngloGold Ashanti was down 3,01% or R8,65 to R279,20, while Gold Fields was down 2,27% or R2,10 to R90,25 and Harmony was off 1,69% or R1,23 to R71,70.

DRDGOLD, which early in Thursday reported a 1% decline in gold production to 135 630 ounces for the quarter ended September from 137 414 ounces in the June quarter, was down 27 cents, or 3,04%, to 860 cents. It also evealed that it has approved an extension of the company’s existing black economic empowerment structure with Khumo Bathong Holdings to cover all of DRDGOLD’s South African assets.

Highveld Steel was up 170 cents, or 2,7%, at R65,70 following its 11% jump on Wednesday on the Anglo news.

Among platinum stocks, Anglo Platinum was up seven rand to R405 but Impala Platinum was off R1,75 at R741,25.

Petrochemicals group Sasol was 160 cents softer at R213,40.

Among banking stocks, Absa was 1,58% or R1,39 lower at R86,60, FirstRand was five cents softer at R15,84, but Standard Bank was 25 cents higher at R69,15. – I-Net Bridge