/ 21 July 2008

JSE rises as resources recover

The JSE remained in the black at midday on Monday despite fairly flat global markets. Resources staged a
recovery after being hard hit last week, while banks and financials, which had a good run last week, saw some profit taking.

By 11.55am, the all-share index was 0,65% firmer, with resources advancing 2,35% and platinum miners up 1,65%. However, gold miners were down 3,53%
despite the firmer bullion price. Industrials were off 0,55%, financials shed 1,68% and banks were off 2,35%.

The rand was bid at 7,57 to the US dollar from 7,54 when the JSE closed on Friday, while gold was quoted at $966,10 a troy ounce from $958/oz at
the JSE’s last close.

“Resources are looking very good today after being hit last week. What we are seeing is the reverse of what we saw last week,” said a local equities trader.

Last week investors moved from resources into banks and financials and this week there is a reverse rotation — from banks and financials back into resources.

Global markets were mostly flat, with the FTSE up just eight points and the Dow Futures five points higher.

On the JSE, resource giant Anglo American advanced R12,70, or 3,02%, to R433 and BHP Billiton collected R10,60, or 4,39%, to R252.

Sasol also reversed from its strong losses on Friday to add R8,02, or 2%, to R408,02.

Gold miner AngloGold Ashanti shed R10,97, or 4,03%, to R261,03 and Gold Fields was R4,19, or 4,26% weaker, at R94,06.

Among platinum miners, Anglo Platinum was down by R24, or 2,48%, to R945, but Impala Platinum added R9,10, or 4%, to R235,10.

Among industrials, brewer SABMiller lost R1,22 to R173,06 and Richemont added 42 cents to R44,52 and Barloworld advanced R3,30, or 4,73%, to R73.

Consumer foods brands maker Tiger Brands was off R1,74, or 1,2%, to R142,26.

Earlier it announced it plans to unbundle and separately list its healthcare interests, Adcock Ingram Holdings on the JSE in the pharmaceuticals sector of the main board on August 25.

Tiger Brands will distribute all of the Adcock shares held by the company to its shareholders recorded in the register at the close of business on 29 August. All shareholders will receive one Adcock share for every one Tiger Brands share held by them.

MTN — not surprisingly — lost R6,50, or 4,99%, to
R123,80 after talks with India’s second-largest mobile carrier Reliance Communications broke down.

MTN said in a statement after the market had closed on Friday: “Owing to certain legal and regulatory issues, the parties are unable to conclude a

“Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse and caution is no longer required to be exercised by shareholders when dealing in MTN securities,” MTN added.

Banks, which have had a strong run late last week, were generally weaker. Standard Bank was R2,90, or 3,41%, in the red at R82,20, while Nedbank was down by R2,60, or 2,57%, to R98,50.

Absa shed R1,40, or 1,52%, to R90,60. – I-Net Bridge