[2008-07-21]  JSE sees some red ink on profit taking
THE JSE ended in the red on Friday as it failed to replicate the stellar volumes of Thursday, with a dealer saying that some investors had taken profits off the table. “(Thursday’s) volumes were difficult to repeat,” the dealer said, noting that it had been the second-best day yet, with value traded reaching R22bn.

The dealer said that after the strong bounce by the financial sector on Thursday, a few players decided to take some profits off the table on Friday.

Another feature was a big drop in the platinum sector as the platinum price came off $26,50 to $1859,50/oz.

Heavyweight stock Sasol (SOL) also lost some ground, going down by R18,25 to R400.

All eyes now turn to the US as it heads into its reporting season. The local equities dealer said the key feature this week would be whether a weak dollar could have a positive effect. “Not many people realise that 60% of the S&P are exporters and so a weak dollar should help them,” the dealer said.


By 5pm on Friday, the all share index was off 1,38%, led by a 2,87% decline in resources and a 6,14% fall in the platinum mining index. The gold mining index was down 2,22%. Industrials shed 0,37%, but financials were 1,05% better. Banks, though, lost 1,06%. “We moved pretty much sideways for most of today with volumes a little less than yesterday,” the dealer said.

On the JSE, resource giant Anglo American (AGL) shed R6,69, or 1,57%, to R420,30 and BHP Billiton (BIL) retreated R4,77, or 1,94%, to R241,40.

Gold miner AngloGold Ashanti (ANG) reversed course in late trade to go down R2,50 to R272, and Gold Fields (GFI) fell R2,75, or 2,72%, to R98,25.

Among platinum miners, Anglo Platinum (AMS) was off R80, or 7,63%, to R969 and Impala Platinum (IMP) shed R13, or 5,44%, to R226.

Brewer SABMiller (SAB) gained 78c to R174,28, Richemont (RCH) e ked out 7c to R44,10, while consumer foods brands maker Tiger Brands (TBS) ended unchanged at R144.

Among banks, Standard Bank (SBK) was 60c higher at R85,10, but Absa (ASA) lost R2, or 2,13%, to R92. Nedbank (NED) fell R1,45, or 1,41%, to R101,10. While Liberty Holdings (LBH) lost R17,99, or 8,29%, to R199,01, Liberty International (LBT) gained R4, or 3,03%, to R136. Old Mutual (OML) garnered 58c, or 4% to R15,10. Construction group Murray & Roberts (MUR) ended Friday down R3,79, or 4,26%, at R85,21.

Woolworths Holdings (WHL) ended the day up 50c, or 5,05%, at R10,40.

South African near-dated futures suffered something of a hangover on Friday after Thursday’s stellar gains to end 355 points in the red. The near-dated Alsi contract closed 355 points, or 1,34%, lower at 26050.

A total of 44620 Alsi contracts changed hands from Thursday’s 61431 contracts, a Safex official said.

South African white maize futures fell by the extended daily limit on Friday, dropping for the fifth day in a row, with traders getting out of long positions ahead of the weekend, a trader said. The market was following in the footsteps of the Chicago Board of Trade (CBOT), where a favourable weather outlook and softening crude oil prices led the market lower.

The in-delivery July contract closed “with quite a thump” R74 down at R1870, September closed down R65 at R1893, and December by the same margin at R1989. “Basically the guys are burning a bit on long positions and getting out of them ahead of the weekend, with momentum on the downside,” the trader said.

Dow Jones Newswires reported that a steady to weak dollar had sparked buying in some commodities, but steep losses in CBOT maize and soybean futures and mostly lower soft commodities were taking their toll in the major indices. One CBOT trader described the selling in grains as “a big sucking sound going on”, the money running out of commodities.

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