/ 7 November 2005

Billiton, Anglo drag JSE down

The JSE was weaker at midday on Monday dragged down by resources giants Anglo American and BHP Billiton, the bourse’s two heaviest weighted stocks. Although the overall index was in the red, advancers outnumbered decliners on it by about three to two.

By 12.01pm, the all share index shed 0,28%. Resources retreated 1,02% and the

gold mining index surrendered 0,7%, but the platinum mining index picked up 0,76%. Financials firmed 0,33% and the banks index climbed 0,14%, while the all

share industrial index inched a marginal 0,05% higher.

The rand was bid at 6,71 per dollar from 6,62 when the JSE closed on Friday, while gold was quoted at $457,90 a troy ounce from $460,75/oz at the JSE’s last close.

Dealers said that were it not for weakness in Anglo and Billiton, the JSE would be in positive territory.

“The rand is weaker, but the gold price is also taking a bit of a pounding. Weakness in sterling might also be negating the rand’s potential effect,” a dealer said.

He added that the oil price was also lower and Billiton was down in London after a soft close in Australia.

Weakness in Anglo could be stemming from Billiton as well as the lower gold price, he said.

Overall, the market was order driven with no clear trends, the dealer asserted.

While buying was coming into a lot of stocks, telecoms counters were taking a bit of a backseat after last week’s rally.

Commented a second dealer: “There is a bit of satisfaction at the way global markets have performed, which is bringing buying into industrials and financials.”

On the resources index, Billiton tumbled 2,71% or R2,70 to R96,80 and Anglo American lost 1,15% or R2,30 to R197,50.

AngloGold Ashanti slid 2,07% or R5,45 to R257,50.

AngloPlat, however, climbed three rand to R420 and Impala Platinum, which earlier leaped to a lifetime high of R797, was six rand in the black at R789.

Petrochemicals group Sasol climbed 93 cents to R218,93.

Other strong performers on Monday included Mittal Steel, which jumped 1,92% or one rand to R53. Pulp and paper producer Sappi firmed 2,1% or R1,35 to R65,50.

Brand management group Barloworld was 1,02% or R1,11 better at R109,60 and London-listed brewer SABMiller was up 80 cents at R124,75.

Construction group Murray & Roberts rose 2,99% or 60 cents to R20,70.

Retailer Mr Price rang up 1,59% or 25 cents to trade at a best to-date R16.

Life assure Sanlam strengthened 1,6% or 20 cents to R12,67, while microlender Abil advanced 2,7% or 58 cents to R22,10.

FirstRand firmed five cents to R16,20 and Absa added 44 cents to R90,70.

Coronation Fund Managers rallied 2,65% or 15 cents to R5,80 after it said in a trading update that it expects earnings per share and headline earnings per share for the year ended 30 September 2005 to be 40% to 50% higher than last year’s.

Industrials and financials to decline on Monday included Swiss-listed luxury goods group Richemont, which eased 12 cents to R25,80.

Transport and logistics group Imperial was 1,38% or R1,75 lower at R125,50 and retailer Truworths surrendered 1,46% or 30 cents to R20,20.

Telkom gave up 98 cents to R140, MTN Group weakened 35 cents to R58 and VenFin was off 35 cents at R46,50.

Rocketing telecom’s stocks led the JSE to a record high on Thursday after news that UK-based Vodafone planned to up its holding in Vodacom to 50% by buying VenFin’s 50% stake sparked a buying frenzy. Telkom holds the other 50% of Vodacom. – I-Net Bridge