/ 10 January 2006

JSE eases as players take profits

The JSE was weaker just before noon on Tuesday, dragged down by profit-taking following the bourse’s rally to a number of record highs in recent days. Weakness on European and Asian markets and continued rand strength contributed to the negativity.

By 11.52am, the all-share index had shed 0,49%. Resources retreated 1,47%, the gold-mining index gave up 0,62% and the platinum-mining index dipped 0,1%. The banks index was 0,12% softer. Financials were flat, while industrials climbed 0,22%.

The rand was bid at R6,07 per dollar from 6,08 when the JSE closed on Monday, while gold was quoted at $545,95 a troy ounce from $538,62/oz when the JSE last closed.

“We are seeing a bit of profit taking across most of the sectors,” a dealer said.

“Resources stocks are lower. The rand is very strong again and the gold price is lower than it was at last night’s New York close,” she added.

Gold ADRs (American Depository Receipts) were down in New York overnight.

The dealer said in terms of volumes, it had been a reasonable morning’s trade.

On the resources index, London-listed Anglo American tumbled 2,31% or R5,01 to R211,99 and BHP Billiton slid 1,88% or two rand to R104,50. Both were down in the United Kingdom.

Petrochemicals group Sasol slipped two rand to R224.

AngloGold Ashanti surrendered R2,65 to R326,80 and Harmony weakened 1,04% or 90 cents to R85,60, while DRDGold dropped 3,54% or 40 cents to R10,90.

Impala Platinum eased three rand to R918.

Industrials to decline included media group Naspers, which was 1,26% or R1,50 in the red at R117,50.

Swiss-listed luxury-goods group Richemont was down six cents at R27,05 and London-listed brewer SABMiller was 50 cents softer at R120.

Highveld Steel & Vanadium, however, was 5,41% or five rand stronger at R97,50, having earlier traded at a record high of R99.

Brand-management group Barloworld bounced 85 cents to R111,85 and services group Bidvest was 90 cents better at R96,90.

Retailers were again on the front foot, with Edcon climbing 1,29% or 25 cents to R37,93 and Foschini firming 54 cents to R55,65.

Edcon and Foschini earlier traded at lifetime highs of R38,55 and R55,99 respectively.

Truworths rose 1,37% or 34 cents to R25,20, having touched a best-to-date R25,30, and Mr Price was up 1,54% or 30 cents at R19,80. It earlier traded at R20 for the first time.

Telecoms group Telkom gained 75 cents to trade at R145,50, having reached a highest-to-date R146,02.

While London-listed financial-services group Old Mutual fell 10 cents to R18,28, Sanlam was 10 cents stronger at R15,50. It reached an all-time high of R15,60 in morning trade.

Standard Bank was 40 cents lower at R79,60, but Absa added 24 cents to R106.

Specialist bank Investec plc was R1,99 in the black at R284. — I-Net Bridge