[2008-07-23]  JSE is sharply weaker as metals fall
THE JSE reversed earlier gains to end sharply weaker yesterday on a combination of a slide in commodity stocks and a stronger rand, with platinum miners also pulling back but remaining well in the black, traders said. The all share index ended 1,57% lower.

Resources fell 1%, the gold mining index was down 0,76%, but the platinum mining index added 1,88%. Banks fell 1,40%, financials dropped 2,78% and industrials weakened 1,84%.


After opening higher largely on the back of miners, which were buoyed by a rebound in commodity prices, the JSE slipped into the red by the late afternoon in line with weakening commodity prices.

“Metal prices are giving back," one trader said, adding that the safe-haven buying incentive for gold was wiped out by a rise in the dollar and the fall in the price of crude oil.

“The rand is also hitting our exporters, and we know that resources are also sensitive to the rand as well," the trader said.


On the JSE, resource giant Anglo American (AGL) fell R8,80, or 2,04%, to R423 and BHP Billiton (BIL) dipped R6, or 2,42%, to R242.

Sasol (SOL) gave up R1,05 to R405,20 as the price of crude oil dropped below $130 a barrel.

Gold miner AngloGold Ashanti (ANG) slipped 50c to R259,50, Gold Fields (GFI) lost 72c to R95,90, and Harmony (HAR) was R2,35, or 2,63%, softer at R87,15.

Among platinum miners, Anglo Platinum (AMS) was up by R32, or 3,38%, to R978 and Impala Platinum (IMP) by R1,95 to R239.

Aluminium processor Hulamin (HLM) rose R1,39, or 7,32% to R20,39. Also in the news, Dimension Data (DDT) fell 9c, or 1,33%, to R6,70.

Fixed phone line firm Telkom (TKG) lost R3,48, or 2,47%, to R137,50. MTN plunged R3,85, or 3,08%, to R121,15.

Elsewhere, brewer SABMiller (SAB) lost R5,90, or 3,42%, to R166,40, Richemont (RCH) was off 126c, or 2,80%, to R43,70 and Bidvest (BVT) dropped R3, or 2,97%, to R98.

Among banks, Standard Bank (SBK) was R2,10, or 2,61%, weaker at R78,30, Nedbank (NED) fell 30c to R97,60, but Absa (ASA) strengthened R1,85, or 2,06%, to R91,85.

South African near-dated futures plummeted yesterday as a stronger rand and reversing metal prices exacted their toll on the local derivatives market.

The near-dated Alsi contract closed 506 points, or 1,93%, lower at 25644 after trading as high as 26340 earlier in the session.

A total of 41459 Alsi contracts changed hands from Monday’s 39417 contracts, a Safex official said.

South African white-maize futures ended slightly weaker yesterday, dropping for the seventh successive day as expectations of a higher crop forecast and weak sentiment in the US kept bears in charge, traders said.

September closed down R8 at R1851 a ton and December fell by the same margin to R1937, but the in-July delivery added R3 to R1837.

“There was bit of buying at some point during the session on bargain hunting. The fact that the market did not hold on to those gains clearly tells you that the bears are still in charge,” a trader said.

Jitters ahead of SA’s crop estimates committee’s latest production estimates were further expected to keep the mood damp this week.

Dow Jones Newswires reported Chicago Board of Trade maize futures continued to slide on Monday, as the market broke below perceived technical support levels amid favourable corn-growing weather forecasts.

September maize closed down 20¼ c to $5,89¼ a bushel, December maize closed down 20¼ c to $6,08¼ and March maize closed down 20c to $6,27¾ .

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