/ 15 September 2008

JSE in the red, financials, banks suffer

The JSE remained in the red at midday on Monday as financial and banking stocks continued to fall as markets remained under pressure from negative sentiment.

“Markets are still down on the negative sentiment from overseas,” a local trader said.

At 11.55am, the all-share index was 2,53% lower.

Resources were down 2,81%. Gold stocks strengthened 1,31% while platinum stocks fell 5,79%.
Industrials were down 1,64% and financials lost 3,77%, while banks gave up 4,27%.

The rand continued to weaken and was bid at 8,13 to the dollar from 8,06 when the JSE closed on Friday, while gold was last quoted at $775,08 a troy ounce down from $755,45 at the JSE’s last close.

Platinum was trading at $1 181/oz, from a previous close of $1 200/oz.

Brent crude was at $93,30 per barrel, slightly up from its previous close of $97,58 per barrel.

“The rand has continued to weakened further and the financials are suffering,” said the trader.

Dow Jones Newswires reports that the FTSE 100 lost 3,4% at 5 230,70. The index travelled deep in negative territory as the aftershocks of Lehman
Brothers filing for bankruptcy worked through the market. “Bear Stearns has gone, Lehman’s gone, Merrill’s gone — it’s carnage. People are worried about what will emerge when Lehman Brothers unravels itself, and the ripple effects that that could cause,” said Mark Priest, senior trader at ETX
Capital in London.

On the JSE, Anglo American lost R11,47, or 3,20%, to R347,50 and BHP Billiton was down R4,61, or 2,14%, to R211,14.

Sasol fell R10,78, or 2,99%, to R349,23.

Gold miner AngloGold Ashanti lost R2,40, or 1,23%, to R192,60, while Gold Fields was up R1,59, or 2,55%, to R63,99 and Harmony jumped R4,07, or 7,05%, to R61.

Platinum miner Angloplat was down R26,82, or 3,27%, to R793,18, Impala Platinum lost R15,51, or 7,60%, to R188,51 and Lonmin fell R18,22, or 4,21%, to R414,72.

Among other miners, African Rainbow Minerals fell R10,20, or 4,64%, to R209,80 and Exxaro gave up R4,20, or 4,25% to R94,70.

Elsewhere on the JSE, Old Mutual lost 91 cents, or 6,48%, to R13,13 while Sanlam fell 35 cents, or 1,90%, to R18,05.

Among banks, Standard Bank gave up R4,50, or 5,01% to R85,40, Absa was down R5,47, or 4,93% to R105,53, Nedbank lost R4,10, or 3,99%, to R98,65 and First Rand gave up R17, or 3,41%, to R16,

Among industrials, brewer SABMiller lost 29 cents to R174,90. Tiger Brands fell R6,23, or 4,45%, to R133,77, Bidvest lost R3,78, or 3,24%, to R112,82 and Barloworld was down R1,85, or 2,73%, at R65,95.

Telecommunications group MTN was down R2,30, or 1,97%, to R114,20 while Telkom gave up R1,97, or 1,50%, to R129,03. – I-Net Bridge