The JSE recorded another record high on Tuesday, boosted by a weaker rand and firmer world markets overnight. However lower commodity prices and a soft production report from BHP Billiton pared the JSE’s gains.
By 12.06pm, the all-share index was up 0,22% at 23Â 521,99 after touching a high of 23Â 538,17.
Industrials and financials firmed 0,62% and 0,87% respectively, while the banks index was 0,4% better. The gold mining index gained 0,74% and the platinum mining index climbed 0,17%, but the resources index retreated 0,43%.
The rand was bid at 7,74 per dollar from 7,68 when the JSE closed on Monday, while gold was quoted at $579,25 a troy ounce from $585,05/oz at the JSE’s last close.
“The Dow was up 114 points overnight and the Nasdaq was up. The Nikkei was
flat, but the Hang Seng was also up,” a dealer said.
He continued that with the drop in the gold price, one would have expected gold shares to come under pressure. However, the rand’s weakness had more than offset this and allowed the market to firm.
“BHP Billiton is testing the ten pound sterling level in the UK, but the rand is limiting the damage in our market. BHP Billiton’s production report was definitely poor. Iron ore production was a little worse than expected.
Production was lower in a number of commodities and across the board the report
wasn’t great. BHP Billiton took a hammering in Australia before our market and
weakness continued in the UK and here,” the dealer commented.
He attributed the weakness in Anglo American to lower commodity prices rather than news that a new CEO had been appointed to replace Tony Trahar.
On the JSE’s resources index, Anglo was off R3,16 at R342,50, while BHP Billiton was R1,35 to R145,65. Anglo earlier traded at a record high of R348,98.
Before the opening, BHP Billiton said it posted record production of aluminium and manganese in the quarter ended September, but copper production was negatively impacted by the strike at Escondida in Chile.
Releasing its quarterly production figures, BHP Billiton said that copper production for the quarter declined by 19% to 249Â 900 tonnes from the same quarter of last year.
Silver production, which came in at 7,349 million tones, was down 35% from the September quarter of 2005 and 12% lower than the June quarter of 2006. Lead
production was 25% lower than the June quarter of last year at 48,977 tonnes, while zinc, at 24Â 011 tonnes, was 18% lower than a year ago.
However, alumina production rose 5% to 1Â 078 tonnes from a year ago and
aluminium was up 1% from the September quarter of 2005.
Iron ore production was up 5% from a year ago at 25-million tonnes, but down 4% from the June quarter.
Production of petroleum products was down 4% on the same quarter of 2005 at
30,52-million barrels of oil equivalent.
Anglo, meanwhile, announced on Tuesday that it had appointed Cynthia Carroll, Alcan’s president of the primary metal group, as a replacement for outgoing chief executive Tony Trahar.
Anglo was down close to 2% in London, while BHP Billiton was almost 1,5% weaker.
Petrochemicals group Sasol slipped R1,30 to R259,20.
While Impala Platinum dipped R2,65 to R1Â 297,5 rand, AngloPlat added R5,25 rand to R839,50.
AngloGold Ashanti was up R2,60 at R310 and Harmony was 1,79% or R1,94 higher at R110,20, although Gold Fields eased 20 cents to R128,60.
Among industrials, London-listed brewer SABMiller was 1,12% or R1,66 stronger at R149,80. It earlier traded at an all-time high of R150,50.
Brand management group Barloworld was 1,17% or R1,60 better at R138,10.
Mittal Steel was bolstered 1,42% or R1,26 to R89,75.
Retailer Woolies rallied 2,6% or 39 cents to R15,40 and media group Naspers leaped 3,31% or R4,30 to R134,30.
Cellular network operator MTN Group rang up 65 cents to R67,25. The dealer noted that HSBC had on Monday completed a six million share bookbuild in the counter. He said that the group’s Irancell venture seemed to be sparking interest in the counter.
On the financial front, London-listed Old Mutual firmed 1,39% or 34 cents to R24,80. Sanlam was 1,84% or R1,35 stronger at R17,24 and Liberty Group gained 1,84% or R1,35 to R74,85.
Health and life insurer Discovery jumped 3,14% or 73 cents to R23,98.
London-listed real estate group Liberty International, which reached a record high of R193,20, was 2,35% or R4,44 rand in the black at R193,02.
Standard Bank was 49 cents stronger at R84,29, Nedbank notched up R1,04 to R117,25 and Absa added 55 cents to R107,10. FirstRand, however, was three cents softer at R18,12. – I-Net Bridge