[2008-08-19]  JSE drops on miners and world markets
SOUTH African stocks ended with steep losses yesterday, led by miners as a rebound in metals prices was deemed unconvincing, while falling overseas markets added to the selling pressures, traders said.

The all share index was down 1,62% weaker at 26806,030, weighed by a 3,24% drop in the gold mining index. The platinum mining index was off 2,59% and resources fell 1,99%. Banks were 0,80% weaker, industrials tumbled 1,37% and financials gave up 1,16%.

“Gold’s picked up but it is off the best levels, and platinum is finding some kind of support,” one trader said. Gold needed to break considerably above the $800/oz level to make a reliable upside move, hes said.

In addition, traders said the stronger rand — which hits export-oriented stocks — and falling overseas markets added to the downbeat mood on the local bourse.

In the US, stocks fell in early trade yesterday as the financial sector stumbled and oil prices edged higher, Dow Jones Newswires reported.

Back in Johannesburg, Melbourne-based resource giant BHP Billiton (BIL) reported a 12,4% increase in attributable profit to $15,4bn for the year to end June . In reaction, shares in BHP Billiton rose more than 2% at one point during the session but had pulled back to R222,56 — down 142c.

However, rival Anglo American (AGL) lost by a larger margin, dropping R8,66, or 2,13%, to R397,20. Synthetic fuels maker Sasol (SOL) was down R11,50, or 2,89%, to R386,50.

Gold miner AngloGold Ashanti (ANG) was R4,69, or 2,25%, lower at R203,51, Harmony (HAR) lost R2,29, or 3,83%, to R57,51 and Gold Fields (GFI) was up R3,50, or 5,04%, to R66.

“Gold remains vulnerable to further sell-offs at this level. That’s the reason these stocks have pulled back,” one trader said.

Among platinum miners, Anglo Platinum (AMS) fell R54,01, or 5,79%, to R878,99, but Impala Platinum (IMP) climbed R1,55 to R224,25.

Also in the news, IT group Dimension Data (DDT, Didata) was 10c, or 1,33%, lower at R7,42.

Banking group Standard Bank (SBK) dropped 58c lower to R88,12 and FirstRand (FSR) shed 22c, or 1,35%, to R16,11.

Among industrials, brewer SABMiller (SAB) was down R3,52, or 2,08%, to R165,48 and Richemont (RCH) fell 143c, or 3,11%, to R44,55, but Imperial (IPL) was up R1,52, or 3,04%, to R51,50.

South African near-dated futures ended deep in the red yesterday in line with world markets as oil prices edged higher. A firmer rand contributed to the weak close. The near-dated Alsi contract ended a whopping 675 points, or 2,68%, weaker at 24550. This was after falling 700 points on Friday. A total of 181329 Alsi contracts changed hands compared with 33576 on Friday, a Safex official said.

South African white maize futures ended sharply lower yesterday, driven by the strengthening rand.

“The sharply lower prices can be attributed to the strengthening currency,” a grains trader said.

The September white maize contract lost R29 to R1893 a ton, December fell R26 to R1984 and the in-delivery August contract fell R23 to R1883.

The trader said US prices had dropped in trade on Friday, but Sunday’s overnight electronic trading saw the market make up for its losses.

Dow Jones Newswires reported CBOT grain and soybean futures strengthened overnight in electronic trading on Sunday. Stronger Asian markets, rising crude palm oil and dry weather are supportive, a trader said.

“We’re retracing what we did on Friday; we sold off a little too hard,” he said.

September maize was up 11¾c to $5,41½ a bushel, September soybeans were up 28¾c to $12,40¼ , and September wheat was up 10c to $8,34¼.
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.