/ 24 November 2006

JSE down, but rand limits losses

The JSE was marginally weaker in noon trade on Friday as negative European markets, on which heavyweight dual-listed stocks were down, took their toll.

Losses locally were pared by a weaker rand and higher gold price.

By 12.14pm, the all share index dipped 0,11%. Industrials and financials fell 0,59% and 0,58% respectively, while the banks index was 1,33% in the red. Resources rose 0,59% and the gold mining index gained 1,37%, but the platinum mining index lost 0,57%.

The rand was bid at 7,22 per dollar from 7,16 when the JSE closed on Thursday, while gold was quoted at $635,60 a troy ounce from $630,30/oz at the JSE’s last close.

“The market just collapsed with the dollar,” a dealer said. “We were above 24 000 but have just fallen in a heap.”

He explained the concerns about the stronger euro had knocked European markets and all the heavyweight dual-listed stocks were down offshore. This had had a contagion effect on the JSE.

Despite the euro’s break above $1,30 for the first time in 19 months, the rand had lost ground due to weakness in emerging market currencies and a short squeeze in the market, and this had helped limit the JSE’s losses.

The dollar’s weakness had also given gold a boost. There were still several bright stocks on the JSE and the number of advancers and decliners on the all share index was almost equal.

On the resources index, London-listed Anglo American added 31,06% or R3,50 to R333,50 and BHP Billiton was R1 better at R133.

Harmony Gold leaped 2,34% or R2,65 to R115,77, Gold Fields bounced 1,7% or R2,05 to R122,80 and AngloGold Ashanti advanced R2 to R328.

Kumba Resources rallied 2,97% or R1,70 to R59.

Impala Platinum, however, was off R1,48 at R168,52.

Petrochemicals group Sasol slipped 99 cents to R247.

Among industrials, Swiss-listed luxury goods group Richemont retreated 2,5% or R1 to R38,95. It earlier traded at an all-time high of R40,20.

Cellular network operator MTN Group surrendered 1,65% or R1,21 to R72,14.

Retailer JD Group gave up 2,35% or R1,94 to R80,66.

Foschini slid 2,48% or R1,48 to R58,21 and Woolworths weakened 1,39% or 24 cents to R17,05.

Brand management group Barloworld was R1,51 better at R153,50 after trading at a record high of R153,98.

Packaging group Nampak was up 1,79% or 37 cents at R21,01.

London-listed IT group Didata jumped 2,74% or 16 cents to R6,01. Generic medicine manufacturer Aspen strengthened 1,83% or 60 cents to R33,40.

Retailer Shoprite rang up 1,09% or 30 cents to R27,80 and furniture group Steinhoff firmed 19 cents to R23,45.

On the financial front, Sanlam was 1,11% or 20 cents stronger at R18,20 and Liberty Group climbed 39 cents to R78,60.

London-listed real estate group Liberty International was R1,60 in the black at R184,65, but London-listed financial services group Old Mutual fell 14 cents to R25,05.

Some profit-taking was seen in banks, with FirstRand coming off 1,96% or 40 cents to R20 and RMB Holdings tumbling 2,37% or 73 cents to R30,07. Absa shed 1,29% or R1,55 to R118,25, while Standard Bank was 75 cents softer at R89 and Nedbank 80 cents in the red at R126. – I-Net Bridge