/ 15 November 2007

JSE remains negative on world markets

The JSE continued to follow the downward trend in international markets at midday on Thursday, remaining firmly in the red. By 11.58am, the JSE's all-share index lost 0,7%. The gold mining index gave up 0,8% and resources fell 0,7%, but the platinum mining index added 0,57%.

The JSE continued to follow the downward trend in international markets at midday on Thursday, remaining firmly in the red.

By 11.58am, the JSE’s all-share index lost 0,7%. The gold mining index gave up 0,8% and resources fell 0,7%, but the platinum mining index added 0,57%.

Industrials dipped 0,84%, and banks pulled back 0,76%, while financials were 0,6% lower.

The rand was bid at 6,64 to the US dollar from 6,62 when the JSE closed on Tuesday, while gold was quoted at $807,97 a troy ounce from $814,80/oz at the JSE’s last close.

“The market is following the international sentiment,” said a local trader.

He added that even though brewery giant SABMiller reported steady volume growth and a huge investment in Peroni, the company’s share price was down over six rand.

He added that Investec’s positive results also couldn’t hold the share price up on the JSE, as it started to pull back from earlier gains along with the rest of the market.

At midday on the JSE, Investec was 49 cents lower at R77,01 and Investec dropped 85 cents, or 1,12%, to R75,15. The specialist-banking group reported an increase of 23.8% in operating profit before goodwill, non-operating items and taxation from £205,3-million to £254,3-million (39% in rand terms to R3,6-billion) for the six months until September.

Adjusted earnings per share (EPS) before goodwill and non-operating items grew 17,2% from 23,3 pence to 27,3 pence (or to 387,8 SA cents, up 31,5%).

Headline earnings per share for the half-year increased by 15,% from 22,4 pence to 25,8 pence.

Brewer SABMiller gave up R6,24, or 3,28%, to R184,05, and Swiss luxury goods group Richemont was off 15 cents to R43,55.

SABMiller on Thursday reported a 22% rise in adjusted earnings per share to US 69,1 cents for the six months ended September from 56,6 cents a year ago.

In South African currency terms, adjusted EPS rose 28% to 492 cents from a

previous 385,2 cents. Basic earnings per share rose 20% to 63,9 US cents and an

interim dividend of US 16 cents per share was declared, up from 14 cents a year

ago.

Resource group BHP Billiton was R4,39, or 1,96% lower, at R219,95 and Anglo American retreated R2,50 to R448, while petrochemical group Sasol lifted R1,50 to R346.

Gold miner AngloGold Ashanti slipped R2,65 to R312,50, and Harmony was down R1,52, or 2,1%, to R70,98.

Platinum group Anglo Platinum eased R6,23 to R1 023,77 but Impala Platinum lifted R3,09, or 1,27%, to R245,59, and Aquarius Platinum rose R10,06, or 4,45%, to R236.

Gaming and hotels group Johnnic Holdings perked up 32 cents, or 2,07%, to R15,77, after it earlier reported 41 cents in diluted headline earnings per share for the interim period ended September, from 35 cents the same time a year ago.

Revenue rose to R162-million from R69-million while gross profit increased to R113-million from R55-million.

Investment group Hosken Consolidated Investments was R1,40, or 1,59% weaker, at R86,60. Hosken on Thursday reported an 18% increase in diluted headline earnings per share to 223,03 cents for the six months until September 2007 from 188,98 cents in the same period a year ago. No interim dividend was declared.

In the telecommunications sector, Telkom shed R1,47 to R169,23, while MTN Group inched down 96 cents to R128,54, but newly listed Blue Label climbed 30 cents, or 3,49%, to R8,90. – I-Net Bridge