/ 8 May 2006

Profit-taking sees JSE surrender gains

After rallying to another record high at the opening, the JSE surrendered its gains on Monday morning due to profit-taking, primarily in the resources sector. Heavyweights Anglo American and BHP Billiton had turned negative in London and the gold price had also come off its highs.

By 12.01pm, the all-share index was down a marginal 0,03% at 21 815,72 after breaking above 22 000 for the first time. Resources retreated 0,24% and the gold-mining index slipped 1,17%, but the platinum-mining index climbed 0,43%.

The financial and banks indices were 0,31% and 0,34% firmer respectively, while the all-share industrial index was flattish (+0,03%).

The rand was bid at 6,01 per dollar from 6,05 when the JSE closed on Friday, while gold was quoted at $681,80 a troy ounce from $680,30/oz at the JSE’s last close. In Asian trade, gold touched a fresh 25-year high of $686,10/oz.

“The JSE has gone into the red overall. A bit of profit-taking has come in after its strong run over the last few days,” a dealer said. She added that Anglo and Billiton were down in London and gold had also come off.

While other sectors were also off their highs, most of the weakness on the JSE was coming from resources.

On the resources index, Anglo weakened R2,41 to R274,60 while Billiton was 26c better at R133,46. The counters earlier traded at record highs of R284,55 and R138 respectively.

Petrochemicals group Sasol was up 42c at R275,02, having reached an all-time high of R277,67.

AngloGold Ashanti shed 1,15% or R3,87 to R333,13, Gold Fields fell 1,2% or R1,75 to R144,35 and Harmony surrendered 1,12% or R1,10 to R97,40.

AngloPlat, which earlier traded at a new high of R669,01 rand, was up 1,22% or R8 at R665.

Swiss-listed luxury goods group Richemont rose 30c to R31,91. It earlier touched a highest-ever level of R32,10.

Brand management group Barloworld was 1,4% or R1,75 better at R126,85.

Media group Naspers was 1,6% or R2,10 in the black at R133,60 following its announcement that it had acquired 30% of the leading Brazil media company, Abil SA, for a cash consideration of $422-million.

While Telkom gained R1,03 to R145,10, MTN Group slipped 1,69% or R1,15 to R66,85.

Hospital group Netcare weakened 1,54% or 15c to R9,60.

Pulp and paper producer Sappi was 1,72% or R1,51 softer at R86,50.

It earlier reported headline earnings per share (Heps) of five US cents for the quarter ended March, from 1c in the December quarter and 20c in the March 2005 quarter.

The group reported an operating profit of $59-million for the March quarter, compared with $49-million in the previous quarter and $55-million in the same quarter a year ago.

For the six months ended March, Heps were 6c from 30c a year ago, while operating profit rose to $108-million from $67-million a year ago.

On the financial front, Sanlam was 11c stronger at R15,72 and London-listed Old Mutual inched 6c higher to R22,40.

Nedbank jumped 1,64% or R2,20 to R136,20 and Standard Bank was 73c to the good at R84,78.

FirstRand, however, dipped 6c to R19,24 rand and Absa eased 30c to R118,70. — I-Net Bridge