/ 30 May 2006

JSE follows weaker European markets

The JSE was weaker in noon trade on Tuesday, taking its cue from European markets. The losses came on fairly light volumes.

By 12.17pm, the all-share index shed 0,89%. Industrials and financials fell 0,46% and 1,05% respectively, while the banks index slid 1,64%. Resources retreated 1,15%, but the gold-mining index gained 0,57% and the platinum-mining index perked up 0,29%.

The rand was bid at 6,51 per dollar from 6,48 when the JSE closed on Monday, while gold was quoted at $651 a troy ounce from $647,77/oz at the JSE’s last close.

“It’s been a pretty dull day. We have given back a good percent on the back of poor English and European markets,” a dealer said. “I’m a bit disappointed — I didn’t expect such a correction and thought it would be more muted.”

He added that there had been no news out to draw buyers into the market.

Another drag was the fact that stocks such as Anglo American had been pushed up locally on Monday when the FTSE was closed for a bank holiday, making a correction when it reopened inevitable.

Anglo shares were last quoted 2,02% or R5,39 lower at R261, while BHP Billiton slid 2,03% or R2,68 to R129,30.

Petrochemicals group Sasol eased R1 to R260,50.

Impala Platinum dipped R1,65 to R1 168,35, but AngloPlat added R5,93 to R620,92.

Gold Fields firmed 1,08% or R1,50 to R140,50 and AngloGold Ashanti added R1,50 to R309,50.

On the all-share industrial index, Swiss-listed luxury goods group Richemont gave up 18c to R30,70 and London-listed brewer SABMiller slipped 50c to R122,45.

Brand management group Barloworld weakened 1,88% or R2,25 to R117,25 and services group Bidvest surrendered 1,14% or R1,19 to R103,30.

Mittal Steel was 2,12% or R1,40 softer at R64,60.

Hospital group Netcare lost 2,42% or 24c to R9,66, while London-listed IT group Dimension Data plunged 5,01% or 27c to R5,12.

Food group Tiger Brands, however, firmed R1,50 to R157,50.

Retailer Pick ‘n Pay rose 1,4% or 40c to R29 and construction group Murray & Roberts jumped 1,55% or 39c to R25,51.

London-listed financial-services group Old Mutual tumbled 2,43% or 51c to R20,50.

Standard Bank slid 1,34% or R1,07 to R78,83, FirstRand fell 1,84% or 34c to R18,16, Nedbank lost 1,62% or R1,95 to R118,55 and Absa was off 1,57% or R1,76 at R110,55.

Specialist bank Investec Plc, however, firmed 1,71% or R6 to R357. — I-Net Bridge