/ 12 December 2006

JSE down on futures-related trade

The JSE was weaker in noon trade on Tuesday, dragged down by derivatives-related activity ahead of next Thursday’s futures close-out. A stronger rand and soft commodity prices also contributed to the bourse’s soggy feel.

By 11.59am, the all-share and all-share industrial indices shed 0,38% and 0,2% respectively. Resources retreated 0,56%, the gold mining index gave up 1,45% and the platinum mining index lost 1,27%. Financials fell 0,36% and the banks index was 0,5% in the red.

The rand was bid at R7,01 per dollar from R7,05 when the JSE closed on Monday, while gold was quoted at $629,67 a troy ounce from $627,25/oz at the JSE’s last close.

“It has been a quiet session. Ahead of the close-out next week we’ve seen a lot of rebalancing with lots of programmes going through. One mommy-sized programme has been leaning on the market over the few,” a dealer said.

He explained that structured product trades had been one of the key influences on the market. “Away from that, the stronger rand and softer commodity prices have helped the cause if you want to get the market lower.”

In morning trade, London-listed diversified resources group Anglo American inched up 95 cents to R334,77 but BHP Billiton weakened 70 cents to R128,85.

Petrochemicals group Sasol slid 1,64% or R4,19 to R250,80.

AngloGold Ashanti slumped 2,73% or nine rand to R321, Harmony was off 1,29% or R1,39 to R106,36 and Gold Fields fell R1,24 to R124,76.

Impala Platinum weakened 1,75% or R3,10 to R174,30 and AngloPlat surrendered eight rand to R804.

Among industrials, London-listed brewer SABMiller was 95 cents better at R149,05.

Food group Tiger Brands firmed 97 cents to R158,47.

Retailer New Clicks rose 1,71% or 18 cents to R10,69.

Telkom, however, surrendered 1,93% or R2,60 to R131,90, while media group Naspers tumbled 2,44% or R3,60 to R143,90.

Construction group Murray & Roberts dropped 2,61% or R1,05 to R39,25.

Banks led the financial index lower, with Nedbank sagging 1,78% or R2,23 to R122,77. Standard Bank was 69 cents softer at R86,30 and Absa 30 cents in the red at R114,20. — I-Net Bridge