/ 10 February 2009

JSE falls further on profit-taking

South African stocks sank deeper into the red by noon on Tuesday with resources leading the downside, as market participants took profits ahead of the United States stimulus package decision.

By noon, the JSE all-share index had lost 1,91%, with resources falling 3,51%, gold miners losing 1,01% and platinum counters weakening 1,61%.

Banks eased 0,43%, financials gave up 0,81% and industrials were off 0,47%.

The rand was last bid at 9,70 to the dollar, from 9,53 when the JSE closed on Monday. Gold was quoted at $895,50 a troy ounce from $898,50/oz at the JSE’s last close, and platinum was at $1 008/oz from its previous close of $988/oz.

“It’s not too surprising that we are down after the recent gains. There is a bit of profit-taking in the market today [Tuesday],” a local trader said.

“The falls are relatively spread across the world, with everyone waiting for news on this stimulus package.

“The big mining stocks are down after having very big moves recently.

“However, taking into consideration the recent gains, the market is holding on. And of course locally we are waiting for the budget tomorrow,” he added.

In Johannesburg, resources giant Anglo American lost R11,86, or 5,53%, to R202,80. BHP Billiton was unchanged at R198.

Petrochemicals group Sasol shed R7,51, or 2,53%, to R289,49.

Paper group Mondi weakened 28 cents to R28,82.

ArcelorMittal was down R2,42, or 2,75%, to R85,58 and Kumba Iron Ore eased 50 cents to R173,50, but Highveld Steel was up R3,02, or 5,31%, to R59,92.

Gold miner AngloGold Ashanti gave up R2,59 to R269,15, Gold Fields was down 50 cents to R102,70 and Harmony lost R2, or 1,80%, to R109.

Platinum miner Anglo Platinum fell R8,80, or 1,92%, to R450,20 and Impala Platinum was off R1,98, or 1,49%, to R130,47, but Lonmin edged up 76 cents to R146.

In diversified miners, African Rainbow weakened R3,60, or 2,95%, to R118,40.

Aluminium company Hulamin shed R1,23, or 9,59%, to R11,60. It earlier reported diluted headline earnings per share of 123 cents for the year ended December 2008 from 18 cents a year ago. The company declared a final dividend of 13 cents per share, for a total dividend of 41 cents.

Elsewhere on the JSE, brewer SABMiller gave up 85 cents to R164,70 and Tiger Brands lost R3,99, or 2,87%, to R135,01, but Barloworld was up R1,03, or 3,10%, to R34,23 and Famous Brands put on 30 cents, or 1,91%, to R16.

Among banks, Standard Bank was off 20 cents to R76,80, Nedbank weakened 37 cents to R93 and FirstRand gave up 32 cents, or 2,08%, to R15,08, but Absa gained R1,59, or 1,58%, to R102,34.

Old Mutual gave up 42 cents, or 4,59%, to R8,73 and Sanlam weakened 40 cents, or 2,37%, to R16,50.

Investec Limited shed 60 cents, or 1,52%, to R38,90.

Liberty International added R1,51, or 2,67%, to R58,02.

Construction group Murray & Roberts added 45 cents, or 1,04%, to R43,75 and WBHO collected R1,03, or 1,09%, to R95,48.

Among telecommunications groups, MTN Group gave up 69 cents to R99,20 and Telkom was barely changed, down one cent to R112,58. — I-Net Bridge