[2008-09-03]  JSE in red, but industrials provide solace
THE JSE ended in the red yesterday, but off the session’s lows as a strong showing by industrials, a firmer start to Wall Street and a weaker rand provided some solace.

However, lower commodity prices continued to weigh on resources and miners, although the latter were off their lows towards the close of the session.

The all share index finished 0,41% weaker. Resources fell 3,43%, while the gold and platinum mining indices gave up 0,89% and 3,18% respectively. Industrials were up 2,68%, while financials added 0,94% and banks gained 0,97%. “Industrials offered some help and the US market opened quite a bit higher, helping banking and financial stocks, and mining stocks have come off their lows. So the market has come back quite a bit from the session’s lows,” a trader said.

But resources continued weaker throughout the session, under pressure from the firmer dollar, lower oil prices and weaker metal prices.

However, industrials, which for the most part of this year have languished while resources and the rest of the market rallied, were a bright spot in an otherwise gloomy-looking JSE yesterday. “Industrials are starting to offer a lot of value. Look at the likes of Wilson Bayley and other construction stocks, which have reported strong results. These stocks were all hammered earlier in the year and now they are starting to show value, and their earnings are on the positive side,” another trader said. “Investors are starting to look for value and they are finding it in industrials,” the trader said.

On the JSE, resource giant Anglo American (AGL) was off R19,74, or 5,07%, to R369,25 and BHP Billiton (BIL) lost R9,71, or 4,29%, to R216,43. Sasol (SOL) was down R3,02, or 0,75%, to R397,50.

Among gold miners, AngloGold Ashanti (ANG) weakened R4, or 2,02%, to R194, Harmony (HAR) edged down 11c, or 0,18%, to R62,50 and Gold Fields (GFI) shed 32c, or 0,49%, to R65,92. Platinum miner Anglo Platinum (AMS) was down R25, or 2,76%, to R880 and Impala Platinum (IMP) lost R8,01, or 3,93%, to R195,99. Aquarius lost R5,72, or 8,35%, to R62,77. Lonmin (LON) was off 51c to R475,50.

Among industrials, SABMiller (SAB) was up R7,85, or 4,78%, to R172,10 and Richemont (RCH) collected 147c, or 3,25%, to R46,77.

Cellphone services provider MTN was up R6,99, or 6,19%, at R120. Supermarket group Shoprite Holdings (SHP) added 100c, or 2,17% to R47.

Among construction stocks, Wilson Bayly Holmes-Ovcon (WBO, WBHO) was up a further 3%, or R2,09, at R146,50, following its 4,74% jump on Monday.

Group Five (GRF) was unchanged at R56 and Murray & Roberts (MUR) collected R1, or 1%, to R101.

Among banks and financials, Nedbank (NED) was down 50c at R104, while Standard Bank (SBK) added R1,72, or 1,92%, to R91,43. Old Mutual (OML) was up 33c, or 2,40%, at R14,10.

South African near-dated futures closed lower yesterday, weighed by the continued decline in mining stocks. While ending in the red, the market was at one stage 500 points lower but was later saved by industrials and banking stocks, which did well on the day.

“We are seeing a sectoral shift out of resources," a trader said, explaining that investors were looking for value and less volatility. The near-dated Alsi contract lost 140 points, or 0,57%, to close at 24540. A total of 54073 Alsi contracts changed hands compared with 36677 on Monday, a Safex official said.

South African white maize futures ended sharply lower yesterday along with weaker US overnight prices and weaker oil prices. “Markets ended deep in the red, along with a drop in US overnight prices and the weaker oil price,” a trader said. The December white maize contract was down R42 to R1951 a ton, March lost R37 to R2035 and September maize, which is in delivery, fell R41 to R1865. I-Net Bridge

3/4 cents to $5,57¼ 1/4 a bushel, November soybeans sank 66¼c 1/4 cents to $12,57¾ 3/4, and December wheat tumbled 33¾c 3/4 cents to $7,67½ 1/2

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