/ 5 July 2006

JSE weaker as it follows world markets

The JSE was weaker in noon trade on Wednesday in line with world markets. Renewed interest-rate jitters sparked by a weaker rand and concerns about North Korea’s missile tests also contributed to the weakness.

By 12.06pm, the all-share and all-share industrial indices slipped 0,7% and 0,62% respectively. Resources retreated 0,44% and the platinum-mining index tumbled 2,77%, but the gold-mining index gained 0,21%. Financials fell 1,31% and the banks index slumped 3,22%.

A dealer said that a bit of profit-taking was being seen on the JSE.

“We are taking our cue from international markets. The last three days, including today [Wednesday], had been lacklustre in terms of value. The public holiday in the United States disturbed things, but we should see a bit more action later in the afternoon when the states comes in,” he added.

He said that the weakness in markets globally was in part related to North Korea’s missile launches.

However, some of the local shares had a good run over the last few days and some profit-taking was coming in.

“We are taking a bit of direction from the rand was well. It has weakened and interest-rate jitters have rebounded as a result,” the dealer concluded.

Leading the JSE’s downside, Standard Bank slid 3,51% or R2,80 to R77 and FirstRand slumped 3,41% or 60c to R17.

Absa dropped 3,87% or R4,10 to R101,80 and Nedbank was down 1,3% or R1,50 at R113,50.

Sanlam tumbled 2,69% or 39c to R14,10.

Impala Platinum plunged 3,07% or R42 to R1 328 and AngloPlat tumbled 2,93% or R22 to R728.

AngloGold Ashanti shed R3 to R347.

Global resources group BHP Billiton weakened 70c to R136.

Swiss-listed luxury goods group Richemont surrendered 15c to R32,10.

Cellular network operator MTN Group was off 1,29% or 70c to R53,70, while Telkom was R1,08 softer at R126,51.

Retailers were under pressure, with Edcon diving 4,85% or R1,45 to R28,45. JD Group dropped 4,43% or R3,01 to R64,99 and Massmart sagged 4,37% or R2,25 to R49,25.

On the market’s upside, Gold Fields gained R1,42 to R173,02 and Harmony was 75c higher at R120,50.

Anglo American was a marginal 15c higher at R291,15.

London-listed brewer SABMiller strengthened 1% or R1,23 to R124,73.

London-listed financial services group Old Mutual was 5c in the black at R21,35. — I-Net Bridge