/ 22 April 2008

JSE flat on lack of direction

South African stocks were little changed at noon on Tuesday in a thin-volume session, as some traders remained on the sidelines ahead of Wall Street opening.

At midday the all-share index was neither here nor there (-0,06%) at 31 754,380. Resources were up 0,50% but the gold- and platinum-mining indices were down 0,16% and 1,63% respectively. Industrials fell 0,27%, financials shed 1,05% and banks weakened 1%.

The rand was bid at 7,67 to the dollar from 7,74 when the JSE closed on Monday, while gold was quoted at $918,90 a troy ounce from $918,33/oz at the JSE’s last close.

“We should pick up in the afternoon after the Dow opens because Europe is not doing much either,” one trader said, adding that investors were awaiting results of the world’s largest fast-food chain, McDonald’s.

“It’s a big week for both international and local markets in terms of data and corporate earnings. So the guys don’t want expose themselves too much,” the trader said.

Locally, Statistics South Africa releases CPIX and PPI inflation data on Wednesday and Thursday respectively, and several blue-chip stocks, such as BHP Billiton and Lonmin, are releasing quarterly production reports, while MTN Group is releasing subscriber numbers.

On the JSE, resources group Anglo American strengthened R4,51 to R531,50 and BHP Billiton climbed 1,39%, or R3,91, to R285,99.

Synthetic fuels maker Sasol was 1,78%, or R8,03, better at R458,01 as crude oil continued to trade near its record on supply disruptions in Nigeria.

AngloGold Ashanti inched up six cents to R289,96 but Gold Fields fell 1,28%, or R1,44, to R111,50.

Anglo Platinum was down R15 at R1 325 while Lonmin added R4,27 to R505.

Grocer retailer Pick n Pay eased 1,40%, or 41 cents, to R28,79 after reporting below-forecast full-year earnings, traders said. Shortly before the market opened, it reported diluted headline earnings per share of 189,45 cents for the year ended February, from 160,79 cents a year ago.

Pioneer Foods, which makes Weet Bix cereals and Ceres juices, began trading on the JSE on Tuesday morning. Shares in the company were at R34 after reaching a high of R36.

Among banks, Absa was down R1 to R101 and Standard Bank fell 1,25%, or R1,15, to R90,50. — I-Net Bridge