/ 16 July 2007

JSE lacklustre ahead of US opening

The local bourse was looking a little lifeless at midday on Monday, with the all-share index down most of the morning on the back of profit-taking, and the local market waiting for Wall Street to open to give it some direction.

At noon, the all-share index was 0,22% weaker at 29 894,770. Resources stumbled 0,75%, the gold-mining index added 0,30% but the platinum-mining index fell 0,19%. Financials climbed 0,10%, industrials were up 0,21% and banks were 0,16% better.

The rand was bid at 6,95 to the US dollar with no change from when the JSE closed on Friday, while gold was quoted at $667,10 a troy ounce from $665,20 at the JSE’s last close.

“The all-share [index] was down for majority of the morning which is on the back of profit-taking, ” one trader said.

He added that there was a general global economic slowdown due to increases in interest rates, and that markets will wait for US data to be released this week.

In resources, Anglo American was down 1,06%, or R5, to R465,50, and BHP Billiton eased 1,44% to R214,01.

Platinum miner Anglo Platinum was up R6 to R1 110,00, Lonmin tumbled 7,25% to R565,59, and Impala Platinum pulled back 0,50% to R229,01.

Platinum miner Lonmin announced on Monday that it estimates a reduction in full year sales to between 820 000 to 840 000 ounces of platinum and 1 520 000 to 1 550 000 ounces of total platinum group metals (PGMs). At 10.19am, shares in Lonmin fell 8,72% after the release of a production report and trading update for the nine months to end in June.

Among gold counters, Anglogold Ashanti fell R2,55 to R298,55 and Gold Fields gained 1,04% to R121,25.

Building material supplier Afrimat climbed 2% to R10,20. They announced early on Monday morning that the company has bought Scottburgh quarries — a quarrying and block manufacturing business — for an undisclosed amount.

In banks, Absa gained 0,37% to R136,50, Nedbank fell 0,64% to R139 and Standard Bank was lower 0,18% to R108.

Standard Bank announced on Monday that the necessary in-principle approvals to proceed with the proposed merger of its Nigerian operations, Stanbic Nigeria, with IBTC Chartered Bank had been received.

It said approvals had been received from the South African Reserve Bank, the Nigerian Stock Exchange, the Nigerian Securities and Exchange Commission, the Central Bank of Nigeria and the Federal High Court of Nigeria.

The deal will see Standard Bank acquire a controlling interest in the enlarged entity.

In terms of the proposed transaction, Standard Bank will merge Stanbic Nigeria with IBTC in exchange for 6,25-billion IBTC shares — equivalent to a 33,33% interest in the enlarged IBTC. – I-Net Bridge