/ 9 March 2009

Resources push JSE deep into the red

Resources led the downside as the JSE fell deep into the red by noon on Monday, moving in line with weak international markets as continued negative global sentiment weighed.

However, gold stocks remained in positive territory on safe haven buying.

By 11.59am, the JSE all-share index had given up 2,13%. Resources fell 3,19% and platinum miners eased 0,31%. However, gold counters edged up
0,76%.

Banks were down 1,18%, financials weakened 1,10% and industrials were off 1,15%.

The rand was last bid at 10,52 to the dollar from 10,44 when the JSE closed on Friday. Gold was quoted at $937,42/oz a troy ounce from $934,40/oz at the JSE’s last close, and platinum was at $1 067/oz from its previous close of $1 072.50/oz.

“We are moving down in line with international markets. Economic data in the US on Friday wasn’t too good and Asia was weak this morning. Sentiment at the moment is very negative again,” an equity trader said.

“General miners are leading us down; however, gold stocks remain positive on some safe haven buying.

“Sasol reported its results this morning and they have reduced their interim dividend, this is not good. Markets at the moment are very oversold
and there is just no positive news.

“The rand is slightly weaker but it’s not helping us. Unless the global conditions get better, we can expect the rand to stay around these levels. For the rest of the day we will continue eyeing and taking direction from Europe and the US,” she said.

Among equity movers on the JSE, Anglo American was down R8,10, or 5,29%, to R145 and BHP Billiton lost R7,48, or 4,29%, to R167,02.

Petrochemicals group Sasol fell R16,55, or 6,30%, to R245,95. The group earlier reported a 51% increase in its first half headline earnings per share to R21,92.

The petrochemical giant recorded a 45% increase in earnings attributable to shareholders to R13,2-billion for the six months to end December 2008 from R9,1-billion for the corresponding six month the year before.

Operating profit, which was buoyed by higher average crude oil prices, was 53% higher at R21,5-billion from R14-billion in the comparable period the year before.

ArcelorMittal weakened R3,50, or 4,93%, to R67,50, Highveld Steel gave up R2,79, or 4,06%, to R66,01 and Kumba Iron Ore was down R16,01, or 9,70%, to R149.

Gold miner AngloGold Ashanti was up R4,25, or 1,36%, to R317,75 and Gold Fields added R1,04 to R115,05, but Harmony eased R1 to R118,50.

Among platinum miners, Lonmin fell R11,31, or 6,85%, to R153,69.

In diversified miners, African Rainbow was up R1,13, or 1%, to R113,63.

Elsewhere on the JSE, brewer SABMiller lost R5, or 3,53%, to R136,50, Barloworld was off 44 cents, or 1,52%, to R28,46 and British American Tobacco lost R12,63, or 5,05%, to R237,25.

Banker Absa lost 96 cents, or 1,18%, to R80,34 and FirstRand gave up 33 cents, or 2,81%, to R11,42.

Financial services group Old Mutual lost 30 cents, or 5,92%, to R4,77, but Sanlam was up 33 cents, or 2,37%, to R14,27.

Sugar group Illovo added 27 cents, or 1,02%, to R26,65.

Media group Naspers was off R1,55, or 1,08%, to R142,35.

Retailer Woolies gave up 16 cents, or 1,46%, to R10,82, Truworths was off 83 cents, or 2,87%, to R28,05, JD Group fell 30 cents, or 1,08%, to R27,60, Shoprite weakened R1,46, or 3,20%, to R44,14 and Steinhoff fell 35 cents, or 3,50%, to R9,65.

Liberty International gave up R1,40, or 3,15%, to R43.

Construction group Murray & Roberts weakened 75 cents, or 1,92%, to R38,25 and Basil Read was down 45 cents, or 3,98%, to R10,85.

Food group AVI gave up 48 cents, or 3,06%, to R15,20. It earlier reported diluted headline earnings per share from continuing operations of 102 cents per share, up 11% from 91,5 cents a year ago.

Consumer goods company Amalgamated Appliance Holdings was unchanged at R1,20. It earlier reported a headline loss per share of
23,7 cents for the six months ended December 2008 compared with a loss of 6,7 cents a year earlier.

The group said the trading environment in the consumer goods sector during the reporting period was characterised by fierce competition between
distributors for a share of the smaller market, and tight stock controls exercised by

The combined effect resulted in sales in the fourth quarter of the calendar year being below expectations.

Group revenue for the period was 33% lower at R612,5-million compared to the prior year, primarily as a result of lower television and audio sales. – I-Net Bridge