/ 17 July 2007

JSE follows overseas markets lower

The JSE is following a trend where overseas markets are generally lower, and with the all-share down 1,01%, the local bourse seems to be sitting and waiting for United States markets to open as well as the release later of US data.

At 12pm, the all-share index was 1,01% weaker at 29 565,770. Resources stumbled 1,35%, the gold-mining index lost 0,93% and the platinum-mining index fell 1,40%. Financials gave up 0,95%, industrials shed 0,61% and banks were 1,43% lower.

At 12pm, the rand was bid at 6,97 to the US dollar with no change from when the JSE closed on Monday, while gold was quoted at $667,10 a troy ounce from $665,05 at the JSE’s last close.

“The JSE is having a steady day with no real reason for the market to be down a bit as it waits for the US,” one trader said.

He added that the local market seems to be following a “general trend” of offshore markets as it hovers in the red.

In resources, Anglo American was down 1,18%, or R5,50, to R459,50, and BHP Billiton fell 1,89% to R209,70.

Platinum miner Anglo Platinum was down R20 to R1 085,50, Lonmin tumbled R20,40 to R545,60 and Impala Platinum pulled back 1,12% to R221,50.

Among gold counters, AngloGold Ashanti fell R2,38 to R298,49, Harmony shed 0,96% to R102,50 and Gold Fields pulled back 1,10% to R120,21.

In banks, Absa dipped 1,30% to R133,25, Nedbank fell 1,76% to R137 and Standard Bank was lower 1,52% to R105,37.

In media, Johncom rose 1,06% to R95 and Naspers-N retreated 0,52% to R183,06.

Steel and vanadium producer Highveld steel gave up R1,49 to R95,50. In the news on Tuesday, Russian steelmaker Evraz’s 15% increase in its offer for the entire share capital of Highveld to R93 a share is almost R4 below its Monday night’s close of R96,99.

Evraz, which owns 54,1% of the local steel and vanadium producer, pressed ahead with a general offer to minority shareholders to acquire all the outstanding shares in the company after its shareholding exceeded 35% last month.

Highveld’s board, which advised shareholders not to accept Evraz’s initial offer of about R82 a share, have now recommended that shareholders accept the offer.

Food retailer Shoprite was five cents lower at R32,50. The company announced in a trading statement just before noon that for the 12 months to end June 2007 the Shoprite Group increased its total turnover by 16,2% to about R38,9-billion. — I-Net Bridge