/ 4 July 2006

JSE softer in ‘extremely quiet’ trade

The JSE was weaker in noon trade on Tuesday, dragged down by lower precious metals prices, softer European bourses and a general lack of buying interest in a market that was very quiet due to the Independence Day holiday in the United States.

By 12:01pm, the all share index shed 0,39%. Industrials eased 0,15%. Resources retreated 0,61%, the platinum mining index plunged 3,34% and the gold mining index surrendered 0,36%. Financials fell 0,26%, while the banks index was 0,73% in the red.

The rand was bid at 7,01 per dollar from 7,04 when the JSE closed on Monday, gold was quoted at $621,10 a troy ounce from $625/oz at the JSE’s last close, while platinum was down $9 from its level at the bourse’s last close at $1 233,50.

“The market is extremely quiet,” a dealer said. “Most of the commodity prices are lower, which has put pressure on resources shares.”

She added that platinum stocks, particularly Impala, had been corrected after being pushed up hard on Monday.

European markets were also down in thin trade and lack of buying interest locally contributed to the JSE heading in the same direction.

Leading the JSE’s downside, Impala Platinum slumped 4,86% or R70 to R1 370 after soaring over 9% on Monday when it closed at a record high.

AngloPlat lost 1,29% or R10 to R765 and Northam tumbled 2,4% or 94 cents to R38,30.

Gold Fields gave up R1,25 to R165,75 and Harmony weakened 75 cents to R118,25, but AngloGold Ashanti inched up 90 cents to R350.

London-listed diversified resources group Anglo American slipped R1,30 to R290,70 and BHP Billiton dipped 15 cents to R136,90.

Swiss-listed luxury goods group Richemont was down 20 cents at R32,20 and London-listed brewer SABMiller was 69 cents softer at R124,50.

Brand management group Barloworld was off 94 cents at R119,75 and Bidvest slipped 79 cents to R101,20.

Mittal Steel slid 1,84% or R1,40 to R74,50 and pulp and paper producer Sappi shed 1,3% or R1,15 to R87.

On the upside, sugar and aluminium Tongaat-Hulett leaped 3,28% or R3,10 to R97,75.

Food group Tiger Brands firmed 1% or R1,50 to R151,50.

Retailer Mr Price rallied 4,66% or 84 cents to R18,85 and Foschini forged ahead 2,15% or R1 to R47,50.

Media group Johncom jumped 2,75% or R1,51 to R56,50. It was trading at R56 before the company announced that its CEO Connie Molusi had been suspended with immediate effect, on full pay, pending the outcome of a hearing to consider his performance.

The company said that contrary to media speculation, Molusi’s suspension was unrelated to any discussions about a black economic empowerment transaction or any other potential transaction involving Johncom.

Among financials, Standard Bank was 70 cents softer at R79 and FirstRand fell 1,07% or 19 cents to R17,50. Absa was 1,27% or R1,34 in the red at R104,50, but Nedbank notched up R1 to R115,10.

London-listed financial services group Old Mutual was seven cents lower at R21,36, but Sanlam climbed six cents to R14,45 and Liberty Group gained 40 cents to R73,40. – I-Net Bridge