/ 8 March 2006

JSE weaker during choppy trade

The Johannesburg Stock Exchange (JSE) was slightly weaker just before noon on Wednesday after a choppy morning session. Dealers attributed the bourse’s softer tone to weaker European markets and lower precious-metals prices.

By 11.56am, the all-share and all-share industrial indices shed 0,3% and 0,37% respectively. Resources eased 0,23% and the gold-mining index lost 0,45%, but the platinum-mining index bounced 3,27%. Financials fell 0,27%, but the banks index inched 0,04% higher.

The rand was bid at 6,28 per dollar, little changed from when the JSE closed on Tuesday, while gold was quoted at $550,15 a troy ounce from $553,83/oz at the JSE’s last close.

The JSE plunged almost 4% on Tuesday in a resources-led sell-off. Lower commodity prices and weaker world markets were the catalyst for offloading of resources stocks offshore. This led to basked selling by local futures players and losses were seen across the board.

“The market has been a bit choppy,” a dealer said. “It opened weaker and then recovered, but now it is lower again.”

She continued that the profit taking seen on the JSE on Tuesday appeared to be continuing.

“Commodity prices are lower, and we are also following overseas markets. Asia was down this morning and Europe is down,” the dealer asserted.

On the resources index, London-listed Anglo American inched up 30c to R215,30, but BHP Billiton weakened 1,58% or R1,60 to R99,70. Anglo was down in London after going ex-dividend there. It went ex-dividend on the JSE on Monday.

Kumba dropped 3,15% or R3,40 to R104,61.

Harmony Gold slid 1,95% or R1,60 to R80,60 and Gold Fields surrendered 75c to R118,75, but AngloGold Ashanti added R3 to R311.

Impala Platinum leaped 4,67% or R43,99 to R986 and AngloPlat added 1,59% or R7,58 to R483,10.

On the all-share industrial index, Swiss-listed luxury goods group Richemont retreated 1,18% or 33c to R27,53.

Brand management group Barloworld weakened 1,47% or R1,77 to R118,73.

Telecoms group Telkom tumbled 2,05% or R3,20 to R153 and media group Naspers slid 2,11% or R2,49 to R115,51.

Retailer Shoprite shed 2,17% or 45c to R20,25 and Truworths was down 3,03% or 80c to R25,60.

Construction and engineering group Aveng plunged 3,7% or 86c to R22,40, but PP Cement rebounded 3,33% or R12,01 to R373,01.

Retailer Pick ‘n Pay rallied 3,93% or R1,10 to R29,10.

Hospital group Netcare was 1,99% or 15c stronger at R7,70.

While banking group FirstRand firmed 1,52% or 27c to R18,05, Nedbank weakened 1,06% or R1,30 to R120,80 and Standard Bank surrendered 65c to R76,90.

Life assurer Sanlam, which dived 9% on Tuesday, bounced 4,59% or 65c to R14,80.

London-listed Old Mutual, however, was 1,35% or 27c lower at R19,75. — I-Net Bridge