[2008-07-24]  Mines restrain JSE’s upward movement
THE JSE ended slightly higher yesterday, led by banks and financials after gains in overseas markets, but sharp falls in the mining sector limited the upside move, traders said. The all share index ended 0,40% higher, thanks to a 6,96% jump in banks and a 5,62% rise in financials. Industrials strengthened 2,05%.

However, resources fell 2,40%, while the gold and platinum mining indices slumped 5,26% and 3,04% respectively.

“We are seeing rotation on a daily basis — today the financials and banks are strong after their pullback yesterday (Tuesday). We knew when we came in this morning to see commodity prices had pulled back that this would be the case," a local equities trader said.


On the JSE, among banks and financials, Standard Bank (SBK) rose R6,70, or 8,56%, to R85 and Nedbank (NED) climbed R5,40, or 5,53%, to R103. Absa (ASA) added R4,15, or 4,52%, to R96 and FirstRand (FSR) added 90c, or 6,16%, to R15,50.

Specialist banking group Investec, which also trades in London, was also in favour. Investec Limited (INL) surged R3, or 6,52%, to R49 and Investec plc (INP) rose R3,73, or 7,98%, to R50,50. Life insurer Old Mutual (OML) rallied 147c, or 10,45%, to R15,54.

Elsewhere, resource giant Anglo American (AGL) fell R12,50, or 2,96%, to R410,50, but BHP Billiton (BIL) collected R1 to R243. Sasol (SOL) was down R20,20, or 4,99%, to R385 on the retreating oil price.

Gold miner AngloGold Ashanti (ANG) lost R8,50, or 3,28%, to R251, Gold Fields (GFI) fell R6,55, or 6,83%, to R89,35 and Harmony (HAR) was R7,15, or 8,2%, weaker at R80. Among platinum miners, Anglo Platinum (AMS) was down R30, or 3,07%, at R948 and Impala Platinum (IMP) shed R7, or 2,93%, to R232.

Pharmaceutical firm Aspen (APN) leaped R3, or 8,11%, to R40 after it said it has entered into licensing and supply agreements with leading multinational pharmaceutical corporation GlaxoSmithKline (GSK).

Among industrial counters, brewer SABMiller (SAB) gained R1,09 to R167,49, Richemont (RCH) climbed 142c, or 3,25%, to R45,12 and Barloworld (BAW) collected R4, or 5,71%, to R74. MTN collected R4,85, or 4%, to R126.

South African near-dated futures ended in the black yesterday on the back of stronger world markets, with banks and financials leading the way.

Gains were capped however by a sharp pull back in mining stocks. The near-dated Alsi contract closed 217 points, or 0,85%, firmer at 25860.

A total of 53583 Alsi contracts changed hands from Tuesday’s 41459 contracts, a Safex official said.


South African white maize futures ended locked limit down yesterday, dropping for the eighth successive day as weak sentiment in the US maize market and expectations of a higher crop forecast kept bears in charge, traders said. September closed down R45 at R1806 a ton and December fell by the same margin to R1892.

“It was all on CBOT electronic trading. Yesterday the market looked ready to pick up, but losses during CBOT’s overnight electronic trading invited bears back in the market,” a Free State-based trader said.

Jitters ahead of SA’s crop estimates committee’s latest production estimates further kept the mood damp.

The rand which, when strong, erodes export competitiveness, was also an underlying bearish factor during yesterday’s sessions, traders said.

Dow Jones Newswires reported Chicago Board of Trade (CBOT) maize futures were expected to open sharply lower yesterday, following overnight losses, as maize continued to plummet amid ideal crop-growing conditions and widespread commodity liquidation.

Maize was being called 18c to 20c lower. In overnight trading, September maize was down 21½ c to $5,52 a bushel, December maize was down 21¼ c to $5,71 and March maize was down 21¼ c to $5,90.

Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.