/ 23 November 2006

JSE drifts weaker on profit-taking

The JSE was weaker in noon trade on Thursday due to profit-taking following the bourse’s strong run earlier in the week. However, the Thanksgiving holidays in the United States and Japan made for a very quiet market.

By 12.03pm, the all-share index slipped 0,55%. Resources retreated 1,19% and the gold-mining weakened 1,02%, but the platinum-mining index inched up 0,12%. Industrials were flat (+0,02%), while the financial and banks indices eased 0,25% and 0,16% respectively.

The rand was bid at 7,16 per dollar from 7,15 when the JSE closed on Wednesday, while gold was quoted at $630,70 a troy ounce from $632/oz at the JSE’s last close.

“It is very, very quiet,” a dealer said. “We’ve seen the gold price pick up from this morning’s levels — it’s above $630 — and the rand has eased a bit so we are seeing a bit of demand come in for gold shares. They are down, but they’ve come off their lows.

“The rest of the market is quiet because of the US holiday and I think tomorrow [Friday] will be even quieter because we will have no direction from the US at all. A lot of people in Europe have taken a holiday tomorrow.”

The dealer said that profit-taking appeared to be the only reason the market was lower.

“It is difficult to find a reason why there is this kind of movement in the market,” he concluded.

In morning trade, London-listed Anglo American lost 1,52% or R5,10 to R330,59 and BHP Billiton weakened 1,09% or R1,46 to R132,55.

The dealer said that while Billiton was flat in London, it had been down in Australia.

Petrochemicals group Sasol slid 2,19% or R5,50 to R246.

Gold Fields tumbled 2,58% or R3,22 to R121,80, AngloGold Ashanti shed R1,37 to R325,64, while Harmony was flat at R114.

Impala Platinum dipped R1 to R171, but AngloPlat added 1,14% or R9 to R797.

Kumba Resources surged 4,18% or R2,30 to R57,30 and Kumba Iron Ore climbed R1,11 to R114,10.

Among industrials, Swiss-listed Richemont rose 24c to R39,40. London-listed brewer SABMiller), however, slipped R1,30 to R147,90.

Brand management group Barloworld was 1,18% or R1,75 better at R149,75 after trading at a record high of R151.

Services group Bidvest strengthened R1 to R126.

Food group Tiger Brands roared ahead 1,94% or R3 to R158.

Hospital group Medi-Clinic perked up 1,4% or 34c to R24,55 — another record high.

Furniture group Steinhoff was 1,32% or 30c firmer at R23,10.

Retailer Woolworths rallied 2,04% or 34c to R17,04.

Telkom bounced 75c to R130,75, but cellular network operator MTN Group lost 1,02% or 75c to R72,50.

Pulp and paper producer Sappi was 1,31% or R1,55 softer at R116,35.

Illovo Sugar slipped 1,11% or 20c at R17,80.

On the financial front, investment company Remgro lost 1,34% or R2,15 to R158,50.

Standard Bank was off 1,01% or 90c at R87,85, Nedbank sagged 1,57% or R1,99 to R125 and Absa was R1,06 in the red at R116,94.

FirstRand, however, firmed 1,69% or 34c to R20,42.

Specialist bank Investec was 1,64% or R1,30 in the black at R83,75. — I-Net Bridge