/ 5 September 2006

JSE surrenders gains on profit-taking

The JSE was weaker in noon trade on Tuesday having succumbed to profit-taking after reaching a record high in early trade. A higher bullion price allowed gold stocks to buck the trend. By 12.05pm, the all-share index slipped 0,39%. Industrials and financials fell 0,25% and 0,47% respectively and the banks index dipped 0,11%.

Resources retreated 0,42%, but the gold mining index gained 0,64% and the platinum mining index climbed 0,38%.

The rand was bid at R7,15 per dollar from R7,16 when the JSE closed on Monday, while gold was quoted at $629,70 a troy ounce from $626,85/oz at the JSE’s last close.

In early trade, the all share index touched a new high of 22 549,01.

“We started quite strong, but emerging markets are going lower and we are also taking a bit of profits — as expected,” a dealer said.

She added that the rand was also a bit stronger.

“Gold stocks are a bit stronger on the gold price, but the majority of resources stocks are down,” she said.

“Overall, the market has been too strong. It’s at all time highs and it’s time to take a bit of profits,” the dealer concluded.

In morning trade, Anglo American weakened R2,30 to R323,70 although it touched a lifetime high of R329,66. BHP Billiton surrendered 79 cents to R138,75.

AngloGold Ashanti added R2,89 to R338,89. Gold Fields gained R1,20 to R148 and Harmony was 15 cents higher at R101,25.

AngloPlat slipped R3 to R827, but Impala improved R6 to R1 359.

Petrochemicals group Sasol shed 1,57% or R4,01 to R251,99.

Swiss-listed luxury goods group Richemont was off 19 cents to R34,61 and London-listed brewer SABMiller weakened 77 cents to R144,80.

Brand management group Barloworld was 95 cents weaker at R135,90.

Cellular network operator MTN Group gave up 1,51% or 88 cents to R57,50 and Telkom was down R1,30 at R139,20.

Pulp and paper producer Sappi (SAP) tumbled 2,04% or R1,94 to R93.

Retailer Edcon, however, bounced 2.135 or 56 cents to 26.86 rand.

Hospital group Netcare surged 41,8% or 50 cents to R12,45 after trading at a record high of R12,85. Medi-Clinic leaped 3,24% or 68 cents to R21,70.

Services group Bidvest was 69 cents better at R113.

Financial services group Sanlam was 15 or 16 cents to R15,80. London-listed Old Mutual fell 15 cents to R22,95. Before the opening, Old Mutual announced a black economic empowerment transaction that will result in a broad range of black stakeholders acquiring direct ownership of N$308-million of the Old Mutual Group’s Namibian businesses.

Standard Bank eased 19 cents to R80,80 and FirstRand dipped R18,35. Absa was 16 cents in the red at R105,84 and Nedbank notched up 1,07% or R1,20 to R113,20. – I-Net Bridge