/ 7 March 2006

World markets knock JSE

The JSE was sharply lower in noon trade on Tuesday, knocked by weakness in commodity prices and global markets. A softer rand did little to help the local bourse.

By 11.49am, the all-share index slipped 1,6%. Resources slumped 2,9%, with the gold and platinum mining indices plunging 3,65% and 4,46% respectively. Industrials lost 0,96%, financials fell 0,6% and the banks index was 0,36% in the red.

The rand was bid at 6,30 per dollar from 6,23 when the JSE closed on Monday, while gold was quoted at $554,21 a troy ounce from $566,10/oz at the JSE’s last close.

”Obviously the rand is a lot weaker, but it isn’t helping the market. Commodity prices are also weaker, which is probably the biggest factor — resources are down across the board,” a dealer said.

She added that the JSE was also following world markets, which had retreated on the heels of the Dow, which closed at a three-week low overnight.

On the JSE’s downside, London-listed Anglo American slid 3,18% or R7,25 to R220,50, and BHP Billiton tumbled 2,41% or R2,54 to R102,68.

Coal and iron-ore miner Kumba was down 3,21% or R3,60 at R108,50.

Gold Fields dropped 4,76% or R6,01 to R120,20, Harmony slipped 3,09% or R2,70 to R84,55 and AngloGold Ashanti shed 1,91% or R6 to R308,50.

Impala Platinum dived 5,32% or R54 to R961, and AngloPlat lost 2,66% or R13,50 to R494,50.

Swiss-listed luxury goods group Richemont retreated 1,4% or 40c to R28,21 and London-listed brewer SABMiller weakened 1,51% or R1,88 to R122,42.

Pulp and paper producer Sappi shed 2,05% or R1,74 to R83,26.

Cement producer PPC tumbled 2,13% or R8,28 to R380. Construction group Aveng tumbled 2,24% or 55c to R24, and Murray & Roberts weakened 1,19% or 30c to R24,90.

Group Five, however, gained 1,08% or 30c to a lifetime high of R28,05.

It was announced on Tuesday that Group Five Middle East, in consortium with its sponsor Al Naboodah, had been awarded two further contracts in Dubai, with a combined value of R1,7-billion.

The value to Group Five is R625-million. This brings the total value of contracts awarded to Group Five since opening its offices in 2004 to almost R2-billion.

Retailer Pick ‘n Pay tumbled 2,15% or 64c to R29,16 and Lewis was 2,25% or R1,30 lower at R56,60.

Foschini, however, firmed 1,12% or 65c to R58,85. On the financial front, London-listed Old Mutual fell 1,45% or 30c to R20,40. Liberty Group, however, gained 80c to R84,80, and Sanlam climbed 5c to R15,60.

FirstRand eased 10c to R19,05 and Nedbank dipped 50c to R122,50. — I-Net Bridge