[2008-10-06]  JSE opens down on weak global markets
STOCKS opened sharply down today, following global markets lower despite the US Congress’s financial bailout vote on Friday.

Now that the bailout has been approved, traders say the market is still not

sure what the approval means for the market in the long run. "The bailout has happened, now what?" a local trader said. "The markets are not out of the woods yet."

The trader said our weak currency should mean good news for commodity stocks, but because of the lack of confidence in the market, "it just hasn’t done anything. There is still a complete lack of confidence in global markets."

The all share index was 3,47% lower with resources down 4,57%. Platinum and gold stocks lost 5,07% and 2,87% respectively. Industrials fell 2,74%, financials gave up 2,41% and banks were 3,08% lower. The rand was bid at R8,64 to the dollar from R8,45 when the JSE closed on Friday, while gold was last quoted at $827,05 a troy ounce from US$838.52

when the JSE last closed.

Platinum was trading at US$936/oz, from a previous close of $950/oz. Brent crude was at $87,05 per barrel, from its previous close of $90,25. Dow Jones Newswires reports that US stock futures are well lower on Monday,

after markets finished their worst week in at least six years with another fall. Investors harboured doubts that the sweeping US$700 billion bailout would fail to cure banking and economic ills. European stock prices, the euro and oil prices all plunged in early European business on Monday as banking sector confusion continued and worries about the health of the global economy persisted.

In the stock markets, prices sank in early trading. In London, the FTSE 100-share index was down nearly 4% at 4783,5, with bank shares

leading the slide. The DAX in Frankfurt was down 3,9% at 5571,5 and the CAC-40

in Paris was down 4.1% at 3911.4. The Nikkei was down 4.8% at 10,414.12, after

briefly falling as low as 10,374.38 on the US dollar’s brief drop below 103

yen. The Nikkei is likely to stay weak near-term, and could fall below the key

10,000 level with selling expected from pension and hedge funds in days or

weeks ahead of monthly and quarterly redemption periods.

On the JSE, Anglo American (AGL) lost R9,30, or 3,50%, to R256,20 and BHP Billiton (BIL) fell R10,04, or 5,62%, to R168,50. Sasol (SOL) dropped R15,36, or 4,99%, to R292,64. Gold miner AngloGold (ANG) lost R3,70, or 2,14%, to R168,99, Gold Fields (GFI) fell 3.15 rand, or 4,60%, to R65,40 and Harmony (HAR) gave up one rand, or 1,43%, to R69.

Among platinum miners Anglo Platinum (AMS) plummeted R40,10, or 6,41%, to R585, Impala Platinum (IMP) lost R6,17, or 4,40%, to R134,05 and Lonmin (LON) shed R18,08, or 7,13%, to R235,42. Among other miners, Exxaro (EXX) gave up R3,36, or 4,65%, to R68,89, African Rainbow (ARI) was down R7,53, or 4,60%, to R156,27 and

Kumba Iron Ore (KIO) lost R6,01, or 3,49%, to R165,99.

Among financial services, Old Mutual (OML) gave up 16 cents, or 1,36%, to R11,59 and Sanlam (SLM) was down 54 cents, or 3,03%, to R17,26. Banker Standard Bank (SBK) lost R2,64, or 3,03%, to R84,36, Nedbank

(NED) was down 3.53 rand, or 3.53%, to R96,47 and FirstRand (FSR) gave up 46 cents, or 2.87%, to R15,59.

Investec (INL) lost R1,90, or 3,85%, to R47,50 and RMB Holdings (RMH) was down R1,29, or 5%, to R24,50 Among industrials, brewer SABMiller (SAB) was down three rand, or 1,99%, to R148; Swiss luxury goods group Richemont (RCH) lost R1,06, or 2,87%, to R35,89 and Imperial (IPL) shed R3,75, or 6,36%, to R55,24.

Among telecommunications groups, MTN (MTN) lost R3,69, or 3,42%, to

R104,31 while Telkom (TKG) gave up R1,10 to R109,90.
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.