/ 4 December 2007

Anglo, Billiton still weigh on JSE

Resource heavyweights Anglo American and BHP Billiton continued to weigh on the JSE in midday trade on Tuesday, with the all-share pulling back almost half a percent from its earlier levels.

By midday, the JSE all-share index dropped 0,69% as resources gave up 0,96%. The gold-mining index shed 0,12% but the platinum-mining index improved 0,42%. Industrials lost 0,53%.

The rand was bid at 6,80 to the United States dollar, from 6,83 when the JSE closed on Monday, while gold was quoted at $788,30 a troy ounce from $784,55/oz at the JSE’s last close.

“The JSE is still very quiet, and resource stocks like BHP Billiton and Anglo American together, are pulling the market down,” said a local equities trader.

He said that Billiton has come under pressure, and Anglo American was down after its huge run last week.

“It was bound to pull back, and I am not surprised to see it down since Friday,” he said.

At midday, Melbourne-based resource group BHP Billiton eased R1,99 to R221 and resource giant Anglo American fell R10,12, or 2,23%, to R444.

The trader also said that Standard Bank (SBK) was looking good on Tuesday. “I am surprised it had a weak close yesterday [Monday],” he said.

The trader explained that he expected the bank to have a stronger close on Monday because 95% of its shareholders had approved a deal that will see Industrial and Commercial Bank of China (ICBC) acquire a 20% stake in the South African bank for R36,7-billion.

Standard Bank climbed R2,29, or 2,21%, to R105,80, and another bank, Nedbank, was also up, lifting R1,10 to R136,20 by midday.

“I think the volumes will remain thin on the JSE until Thursday, when we will have our local interest-rate announcement,” he said.

The trader added that the Bank of England would also be making its interest-rate announcement on Thursday.

“The local market is expecting a 50 basis point increase, and it is already factored in. I don’t think the market will react too much unless there is something really surprising,” he added.

Looking at other stocks on the JSE, by noon Sasol was only nine cents in the black at R349,10.

Gold miner AngloGold Ashanti was R2,90 lower at R329 but Goldfields collected R1,16, or 1,03%, to R113,31.

Among platinum counters, Anglo Platinum advanced R12, or 1,19%, to R1 024, but Impala Platinum slipped 60 cents to R242,40.

Brewer SABMiller pulled back R4,75, or 2,45%, to R189,25.

Elsewhere, real estate group Liberty International dropped R6,25, or 3,89%, to R154,50.

Among technology and electronic stocks, Bytes Technology was unchanged from its last close of R18, and Altron shed 16 cents to R45,50. Altech tumbled R8,37, or 11,89%, to R62,01 after shareholders blocked an offer by parent company Altron to acquire a further stake in it.

On Monday, Altron said shareholders had not approved its offer to acquire the 38,2% of the issued ordinary share capital of its subsidiary, Altech, that it did not already own. But they did give the thumbs-up to Altron’s offer to acquire the 42,3% of the issued ordinary share capital of its other subsidiary, Bytes, that it doesn’t already own. — I-Net Bridge