/ 25 September 2007

JSE pulls back from earlier gains

The JSE had given up most of its early gains by midday on Tuesday, but was still in positive territory as resources and the platinum mining index tried to lift the local bourse.

By noon, the JSE’s all-share index had added 0,18%. The platinum mining index had firmed 1,93% and resources rose 0,69%. However, industrials were flat (- 0,07%), financials lost 0,58% and banks gave up 0,96%. The gold mining index was 1,66% lower.

The rand was bid at R7,01 to the dollar, from R6,98 when the JSE closed on Friday, while gold was quoted at $727,40 a troy ounce from $732,55 at the JSE’s last close.

“The JSE is still positive. We have seen strong moves in Impala Platinum and BHP Billiton, with speculation around BHP Billiton helping push the stock up. Dow futures are negative, and if we see the Dow falling further at the US open, the JSE will go negative into the close,” said a local equities trader.

Earlier, Dow Jones Newswires reported from Sydney that rumours that BHP Billiton would massively upgrade gold reserves at its Olympic Dam mine may have helped boost shares in the world’s biggest miner, but its no-hedging policy should shield the gold market from any effects.

It said that in Australia, BHP shares had rallied 10% since Friday’s close to a record Aus$45,09 on the Australian Stock Exchange on Tuesday on reports that the mining giant would announce potentially the largest gold resource in the world at its copper, uranium and gold Olympic Dam mine in South Australia in its annual report on Wednesday.

By noon on the JSE, BHP Billiton had advanced 3,37%, or R7,85, to R240,85, but Anglo American gave up R3,50 to R455,60.

Sasol dipped R5,99, or 1,9%, to R310,01, but Kumba Iron Ore added R4,75, or 2,08%, to R233,25 and Exxaro was up R2,40, or 2,81%, to R87,90.

Gold miner AngloGold Ashanti lost R4,49, or 1,35%, to R328 and Goldfields fell 2,66%, or R3,38, to R123,62.

Among platinum stocks, Anglo Platinum was off R5,50 to R1 046,50 rand and Lonmin tumbled 4,01%, or R18,80, to R450,20, but Impala Platinum added R9,01, or 3,88%, to R241,51.

First Uranium slumped three rand, or 4,76%, to R60.

Cement manufacturer PPC was 2,45%, or R1,10, better at R46, and Aveng picked up 1,83%, or 99 cents, to R54,99.

Among food and beverage stocks, brewer SABMiller shed R1,40 to R198,60, but food group Tiger Brands gained R1,01 to R186 and Illovo collected 1,45%, or 35 cents, to R24,50.

Retailer Shoprite was up 3,47%, or R1,23, to R36,72, but Massmart lost 2,53%, or R2,15, to R82,85.

Financial stock Investec plc was R3,20, or 4,34%, weaker at R70,45, and Investec Ltd dipped 3,1%, or R2,30, to R72.

Banking stocks were mostly lower, with FirstRand off 25 cents, or 1,16%, at R22,25 and Standard Bank down R1,29, or 1,3%, at R97,21. — I-Net Bridge