/ 28 March 2007

JSE softer on world markets

The JSE retained its softer tone at midday on Wednesday in line with weaker Asian and United States markets on growing concerns that the US economy.

At 11.53am, the all share index was off 0,36%. Resources were 0,14% softer, the platinum mining index was flat (-0,05%) while the gold mining index added 0,59%.

Industrials fell 0,48% and banks and financials lost 0,85% and 0,62% respectively.

The rand was bid at 7,28 per dollar from 7,23 when the JSE closed on Tuesday, while gold was quoted at $665,65 a troy ounce from $664,45/oz at the JSE’s last close.

“Asia is down quite sharply and there are still concerns over the US economy,” a Johannesburg-based dealer said, adding that gains seen in gold stocks were limiting the JSE’s losses.

The dealer added that it was not a sell-off but more of a mark down due to a lack of corporate news to give the local bourse direction.

On the resources index Anglo American shed R2,58 to R374 and BHP Billiton was off 58 cents to R159,31.

Petrochemical giant Sasol gained 1,61%, or R3,85, to R242,85.

Among gold counters AngloGold Ashanti slipped two cents to R324,20, but GoldFields added 1,30%, or R1,70, to R132,70. Harmony inched up 39 cents to R102,38.

Harmony announced earlier that it has concluded negotiations with Rio Tinto in terms of which the parties have agreed that Harmony purchase the Rio Tinto rights under the royalty agreement entered into prior to the acquisition by Harmony of the Hidden Valley and Kerimenge deposits in Papua New Guinea.

In terms of the royalty agreement Rio Tinto has the right to receive a portion of between 2% and 3,5% of future ounces produced by the Hidden Valley mine in Papua New Guinea. The consideration payable by Harmony to Rio Tinto will be $22,5-million.

London listed brewing giant SABMiller fell R1,31 to R154, but Remgro improved 60 cents to R176,70.

Sugar producer Illovo was down 1,22%, or 23 cents to R18,67 and AVI fell 1,39%, or 28 cents to R19,82.

Steel maker Mittal Steel tumbled 2,35%, or R2,75, to R114,25. The company was on Tuesday found guilty of antitrust practices by the Competition Commission.

Pulp and paper producer Sappi added 1,99%, or R2,17, to R111,40.

Johnnic Holdings soared 8,78%, or R1,01 to R12,51.

Among banks, Standard Bank lost 90 cents to R104,10, Firstrand was down 20 cents to R23,10 and Nedbank gave up 78 cents to R139,23.

Insurance giant Old Mutual shed 18 cents to R23,61 but Sanlam was up 11 cents to R20,15. – I-Net Bridge