/ 5 June 2006

World markets drag JSE down

The JSE was weaker at midday on Monday, dragged down by softer world markets. Gold stocks bucked the trend, however, buoyed by a higher bullion price

By 11.56am, the all-share index shed 0,23%, while the all-share industrial index eased 0,13%. The financial and banks indices fell 0,69% and 0,3% respectively. Resources were flattish (-0,04%) and the platinum-mining index dipped 0,09%, but the gold-mining index gained 0,65%.

The rand was bid at 6,64 per dollar from 6,68 when the JSE closed on Friday, while gold was quoted at $644,30 a troy ounce from $633,05/oz at the JSE’s last close.

”The market is still a bit volatile — it is marking time to some degree,” a dealer said. ”The rand at 6,64 is having a bit of an impact — it has strengthened slightly, which is putting a bit of a dampener on resources.”

On the whole, the JSE was just following weaker world markets.

A second dealer noted that after the JSE’s close on Friday, dual-listed stocks had weakened off-shore and this was having a negative effect.

On the resources index, London-listed diversified resources group Anglo American weakened 1,3% or R3,44 to R261,76. BHP Billiton was down a marginal 18c at R129,72, even though it was up almost 1,5% stronger in London on Monday.

Petrochemicals group Sasol surged 2,5% or R6,45 to R259, lifted by a higher oil price and positive trading update released before the opening. Sasol advised that its headline earnings per share for the full financial year are expected to be between 20% and 25% higher than those achieved in the previous financial year.

AngloGold Ashanti slipped R2,10 to R311,90, but Harmony jumped 2% or R1,90 to R97 and Gold Fields gained 85c to R140,10.

AngloPlat picked up R4 to R596, whereas Impala weakened R6,01 to R1 199,99.

Among industrials, Swiss-listed luxury goods group Richemont rose 22c to R33,39 having earlier reached a record high of R33,59.

London-listed brewer SABMiller, however, slipped 1,26% or R1,55 to R121.

Mittal Steel strengthened 1,29% or 85c to R66,50.

Brand management group Barloworld surrendered 70c to R119,30 after going ex-dividend of R1,50 per share.

Services group Bidvest was off 50c to R105,90, but transport and logistics group Imperial climbed R1,10 to R153.

Cellular network operator MTN Group gained 50c to R58,50, while fixed-line operator Telkom was 53c firmer at R139,70.

Before the opening, Telkom reported a 36% increase in headline earnings per share to 1 740,5c for the year ended March, from 1 279,0c a year ago.

The group delivered a strong performance across both business segments primarily as a result of continued growth in the fixed-line and mobile business and cost reductions in the former, it said.

It declared a higher ordinary annual dividend of 500c per share and a special dividend of 400c per share.

Generic medicine manufacturer Aspen jumped 2,34% or 88c to R38,50.

Retailer Pick ‘n Pay slumped 3,27% or 98c to R29, while JD Group dropped 2,92% or R2,39 to R79,50. The counters on Monday went ex-dividend of 90,5c per share and R2,30 per share respectively.

Truworths, however, bounced 2,64% or 69c to R26,80.

On the financial front, Liberty Group dropped 4,47% or R3,59 to R76,80 after going ex-dividend of R3,60 per share.

Sanlam tumbled 2,78% or 44c to R15,37 and London-listed Old Mutual was 1,91% or 41c lower at R21,10.

RMB Holdings retreated 1,55% or 43c to R27,26 and Absa was 74c in the red at R114,26.

Microlender ABIL, however, added 22c to R28,40. — I-Net Bridge