/ 28 November 2008

JSE edges down on profit-taking

The JSE slipped into the red by noon on Friday as profit-taking set in by market participants looking to cover their shorts ahead of the weekend.

A trader said with not much direction from world markets, there was a lot of selling pressure amid anticipation of strong falls next week.

By midday the all-share index had fallen 1,18%, with gold miners losing 2,52%, resources giving up 1,90% and platinum counters shedding 1,85%.

Banks edged down 0,67%, financials eased 0,75% and industrials fell 0,41%.

The rand was last bid at R9,97 to the dollar from R9,86 when the JSE closed on Thursday, while gold was last quoted at $813,50 a troy ounce from $814,83/oz at the JSE’s last close.

The platinum price was at $858/oz from its previous close of $853/oz and Brent crude was at $52,50 per barrel from $53,13 before.

“There is some profit-taking ahead of the weekend with participants looking to cover their shorts,” said an equities trader.

“Selling pressure is weighing us down and there is a general feeling that we could go lower next week,” he added.

Dow Jones Newswires reports that London stocks edged lower on Friday in what is looking like a rather directionless session. The FTSE was last down 0,24%.

“US stocks are expected to open modestly lower with very light volumes expected the day after Thanksgiving when the New York Stock Exchange closes early at 18:00 GMT,” says Martin Slaney, a trader at GFT Global Markets.

He calls the Dow Jones Industrial Average to open down 49 points and the S&P 500 down 4,7 points.

On the JSE, resources giant Anglo American was barely changed (up five cents) at R232,50 and BHP Billiton lost R6, or 3,26%, to R178.

Petrochemicals group Sasol was off R7,48, or 2,64%, to R275,51.

Kumba Iron Ore lost R10, or 5,87%, to R160,50 and Highveld Steel eased 28 cents to R64.

Among gold miners, AngloGold Ashanti was down R9,34, or 4,06%, to R220,66, Gold Fields lost R1,20, or 1,39%, to R85 and Harmony gave up R1, or 1,14%, to R87.

Platinum miner Anglo Platinum shed R7,25, or 1,50%, to R475,75 and Impala Platinum was off R3,05, or 2,33%, to R128.

Coal miner Wescoal Holdings was up six cents, or 9,38%, to 70 cents. Earlier the company said that it expects its interim headline earnings to be between 45% and 55% higher than that of the previous corresponding period.

Elsewhere on the JSE, brewer SABMiller collected R1,27 to R161,27, Bidvest fell 96 cents, or 1,01%, to R94,04 and Barloworld gave up R1,44, or 3,17%, to R44,01.

Standard Bank weakened R1,01, or 1,20%, to R82,99 and Absa eased 86 cents to R104,14.

Financial services group Old Mutual was up six cents to R7,85 but Sanlam was off 35 cents, or 2,05%, to R16,70.

Investment firm ElementOne lost 20 cents, or 1,64%, to R12.

The group earlier reported that it expects an attributable loss of R324-million, which translates into an attributable and headline loss of 312 cents per share for interim period ended September.

Furniture group Lewis shed 50 cents, or 1,20%, to R41, JD Group lost 50 cents, or 1,59%, to R31 but Mr Price added 25 cents, or 1,04%, to R24,30.

Among construction groups Aveng was off R1,48, or 4,67%, to R30,22, Pretoria Portland was off 50 cents, or 1,61%, to R30,50 but Group Five added R1,30, or 4,21%, to R32,20.

Packaging group Astrapak gave up 15 cents, or 2,34%, to R6,25 and Nampak lost 25 cents, or 1,97%, to R12,45.

MTN Group collected 41 cents to R103,91 but Telkom was unchanged at R104. – I-Net Bridge