/ 23 May 2008

JSE extends losses on profit taking

The JSE extended losses at midday on Friday as profit taking-induced selling on resources offset modest gains among banks and financials, traders said.

At 12.03pm, the JSE’s all-share index was down 1,24%, weighed by a 1,75% drop in resources. The gold mining index was off 0.18% but the platinum mining index added 0,17%.

Banks collected 0,16%, financials strengthened 0,15%, while industrials weakened 0,91%.

The rand was bid at 7,65 to the US dollar, unchanged from when the JSE closed on Thursday, while gold was quoted at $921,30 a troy ounce from $924,15/oz at the JSE’s last close.

Following recent strong performances, profit taking set in on heavily weighted miners with Anglo American down R14, or 2,58%, at R528. BHP Billiton was off R8,25, or 2,57%, to R313.

”Overall the market is healthy — it’s just profit taking on Anglo and Billiton because they had quite a rally yesterday,” one trader said.

Sasol the maker of motor fuels from coal and gas, came off R7,35, or 1,45%, to R499,15 and Nigerian-based oil and energy firm Oando plunged R1,05, or 6,19%, to R15,90 as the oil price comes off the boil. Brent crude futures were last trading at US$132.12 per barrel after piercing through the $135 per barrel for the first time on Thursday.

Among gold counters, AngloGold Ashanti was down R1,22 at R301,28 while Harmony inched up 10 cents to R100,59.

Platinum miner Anglo Platinum added R4,99 to R1 415 and Impala Platium improved R1 to R355.

Bucking the generally weaker tone on the local bourse, Standard Bank gained 34 cents to R87,35 and FirstRand was up seven cents to R15,22.

Dual-listed specialist banking group Investec Limited was up 69 cents, or 1,27%, to R55,20, but Investec was down 24 cents at R53,76.

Life insurer Old Mutual, which also trades in London, climbed 18 cents, or 1,05%, to R17,28.

Among industrials, brewer SABMiller tumbled R4,92, or 2,57%, to R186,50 and Swiss-based luxury good group Richemont slipped 73 cents, or 1,49%, to R48,30. – Reuters