/ 28 June 2007

JSE higher but off its best levels

The JSE was higher at midday on Thursday but off its best levels as worse-than-expected PPI (producer price index ) data and a stronger rand discouraged buyers in the market.

At 12pm the all-share index was up 0,25%. Resources were flat (-0,01%), while the gold and platinum indices fell 0,08% and 0,31% respectively. Industrials gained 0,35% and financials added 0,54%. Banks picked up 0,22%.

The rand was bid at 7,10 to the United States dollar from 7,17 when the JSE closed on Wednesday, while gold was quoted at $646,05 a troy ounce from $643,30 at the JSE’s last close.

“The rand’s strength weighed on gold and platinum with little selling seen. With PPI data released today [Thursday], the market will be worried about inflation,” said a Johannesburg-based analyst.

He added that as negative sentiment remained in the market, local investors would look to international markets for support.

On the resource index, Anglo American added 0,24%, or R1, to R414 and BHP Billiton gained R0,81 to R194.

Among gold counters, AngloGold Ashanti climbed 0,52%, or R1,40, to R269,40 but Goldfields fell 0,91% to R110,49.

Platinum miner Anglo Platinum fell R9,95 to R1 190 and Impala Platinum eased 0,31% to R220,50.

Elsewhere, mobile phones group MTN was up 1,05%, or R1, to R95,90.

The company has followed rival Vodacom by entering the fixed-line market. It has already spent R10-million on building its own network to save costs and meet the rising demand for internet access, Business Report said.

Among banks, Nedbank gained 0,99%, or R1,31, to R133,01.

Industrial brand management group Barloworld picked up 1,37%, or R2,65, to R195,65, services group Bidvest eased 0,08%, or 12 cents, to R141,28 and breweries giant SAB Miller gained 0,59%, or R1,05 to R180,45. — I-Net Bridge