/ 25 June 2008

JSE mixed as banks, gold miners gain

South African stocks were mixed with a weaker bias at noon on Wednesday ahead of the United States rates verdict, but investors picked up reasonably priced banking and gold-mining stocks after recent falls.

By noon, the all-share index was down 0,68%. The platinum-mining index tumbled 1,71%, resources fell 1.,9% but the gold-mining index was up 2%.

Banks collected 1,37%, financials added 0,24% and industrials strengthened 0,90%.

The rand was bid at 7,99 to the dollar from 8,01 when the JSE closed on Tuesday, while gold was quoted at $886,63 a troy ounce from $893,17/oz at the JSE’s last close.

Traders said the overall mood in the market remained damp ahead of the US’s Federal Open Market Committee interest-rate decision on Wednesday night.

“There’s an 88% chance that the Fed will keep rates on hold but the key thing will be its tone and comments on the US economy, subprime and inflation,” said Hennie Fourie, a trader at Cape Town-based PSG Konsult.

The local consumer inflation data, which came in largely with expectations, provided little lead for the market, said Ferdi Heyneke, a trader at Afrifocus Securities.

“It’s as expected. It was a bad number, but the market was already expecting that. We’ll have to see how PPI plays out tomorrow [Thursday],” said Heyneke.

Statistics South Africa’s data showed earlier that CPIX (consumer inflation less mortgage costs) rose to 10,9% year on year in May, from 10,4% in April.

Among equity movers, resource giant Anglo American tumbled R18,48, or 3,43%, to R520,02 and BHP Billiton was off R7,70, or 2,57%, at R292,20.

“I am not surprised to see stocks such as BHP Billiton and Anglo American taking a beating — they have been running quite strongly recently on all sorts of speculations,” said Heyneke.

Sasol, which makes motor fuels from coal and gas, added 46 cents to R462,56 as the price of crude oil remained at elevated levels. Brent crude futures were last trading at $136,40, little changed from their overnight close.

Also posting gains were gold miners as investors short-covered positions following recent sharp losses and cheered upbeat earnings guidance from Gold Fields.

AngloGold Ashanti was up R2,69, or 1,16%, to R234,90, Gold Fields climbed R2,50, or 2,81%, to R91,50 and Harmony rallied R2,92, or 3,40%, to R88,70.

Among platinum miners, AngloPlat fell R1,20 to R1 355, Implats lost R8,70, or 2,93%, to R288,10 and Lonmin was down R16,59, or 3,37%, at R475,41.

In earnings news, media group Naspers climbed R9,50, or 6,15%, to R164. It earlier reported that it had lifted its fully diluted headline earnings per N ordinary share to 1 051 cents for the full year to March 31 2008 from 832 cents recorded a year earlier.

The board recommended that the annual dividend be increased by 15% to 180 cents (previously 156 cents) per N ordinary share, and 36 cents (previously 31 cents) per unlisted A ordinary share.

Mobile network provider MTN recovered R3,95, or 3,24%, to R125,95. It said earlier that it had entered into an agreement with Verizon Business, part of US-based Verizon Communications, to acquire 100% of Verizon South Africa.

Boosted by bargain hunting after taking a pounding in recent days, Standard Bank was up R1,69, or 2,32%, to R74,49 and Nedbank added R1,50, or 1,68%, to R90,90. — I-Net Bridge