/ 8 May 2008

JSE flat, resources the main feature

Resources stocks were the main feature of the JSE by midday on Thursday, with the overall market generally flat following an overnight decline on Wall Street.

At 11.56am, the JSE’s broader all-share index was up 0,12%, helped by a 1,1% rise in resources, 0,89% advance in the gold mining index and a 0,39% rise in the platinum mining index.

The industrial and banks indices were both down 0,95%, while financials shed 0,69%.

The rand was bid at 7,59 to the US dollar from 7,51 when the JSE closed on Wednesday, while gold was quoted at $872,05 a troy ounce from $868,10/oz at the JSE’s last close.

A local trader said that retailers and banks remained under pressure because of higher interest rates, while resources were a bit stronger on the day.

Resources giant Anglo American was up R6,37, or 1,25%, to R514,37 and BHP Billiton collected 1,89%, or R5,40, to R291,40. Sasol advanced R2,24 to R479,54.

Among gold counters, AngloGold Ashanti was up R2,40 at R293,50, Gold Fields added 68 cents to R102,78 and Harmony inched up R1,59, or 1,79%, to R90,49.

Harmony earlier reported a March quarter net profit of R345-million versus the December quarter’s net profit of R46-million.

Headline earnings per share of 42 cents reflected the about-turn after the company reported a 43 cents headline loss per share for the December quarter.

The company’s gold production was 16,6% lower at 332 662oz after operations were impacted by South African power shortages.

Among platinum counters, Angloplat was up R5,99 to R1 270,99 and Impala collected 55 cents to R330,55. Lonmin advanced 3,35%, or R15,91, to R491,21.

Lonmin earlier reported that strong metals prices helped it boost its first half profits by 68%.

The company reported net profit before special items of $207-million for the six months to end March compared with $123-million during the first half of 2007.

Among banks and financials, Old Mutual was down 43 cents, or 2,29%, to R18,31.

It earlier reported net client cash inflows of £2,1-billion, which represented 3% of opening funds under management on an annualised basis, despite volatile market conditions for the three months ended March. Funds under management were down 6,5% to £260,8-billion, the group said. Life assurance sales were up 2% at £426-million.

Among banking stocks, Nedbank was down 221 cents, or 1,94%, to R111,79, Absa shed 30 cents to R92,70 and Standard Bank gave up 96 cents, or 1,07%, to R88,55.

Elsewhere, mobile phone operator MTN Group slipped 2,2%, or R3,48, to R154,53 from this week’s record-breaking performance after saying that it was in price-sensitive talks with India’s Bharti Airtel, heightening speculation that it was a takeover target.

Among retail stocks, Foschini was down 44 cents, or 1,2%, to R36,21, Shoprite shed R1,55, or 3,46% to R43,25 and Massmart was off R2,01, or 2,83%, to R68,98. – I-Net Bridge