[2008-07-11]  JSE lower on resources, industrials
THE JSE ended more than 1% weaker yesterday, led lower by resources and industrials. However, traders said that firmer gold and platinum prices had helped cushion the market to a certain extent.

At the close, the all share index was down 1,15%. Resources fell 1,18%, the gold mining index was down 0,52% but the platinum mining index gained 0,43%.

Industrials weakened 1,41%, banks were down 0,68% and financials lost 0,44%.

“Resources have had a pretty dismal day, with the notable exception of Billiton. But resources held up pretty well, when everything else was so much weaker lately, that it’s not entirely surprising," a trader said. He said there seemed to be some interest in retail stocks, which have taken severe strain lately. “There is interest in those stocks that are trading below fair value."

On the JSE’s resources index, Anglo American (AGL) was down R14,19, or 3,04%, at R452,40, but BHP Billiton (BIL) was up R1,20 to R262. Sasol (SOL) retreated R9,99, or 2,28%, to R428 as the price of crude oil came off the boil.

Among gold miners AngloGold Ashanti (ANG) shed 89c to R253, Harmony (HAR) was down R1,32, or 1,49%, at R87,50 and Gold Fields (GFI) dipped 30c to R92.

Platinum miner Angloplat (AMS) slumped R33,10, or 2,81%, to R1145,90, but Impala Platinum (IMP) climbed R7,25, or 2,8%, to R266.

Among industrials SABMiller (SAB) fell R6,98, or 4,16%, to R160,98, while Naspers (NPN) was R8,50, or 4,97%, weaker at R162,50. Barloworld (BAW) advanced 20c to R68 and AECI (AFE) advanced 30c to R59,60.

JD Group (JDG) was a feature, advancing R1,61, or 7,19%, to R24,01. Foschini (FOS) was up 80c, or 2,81%, at R29,30 and Truworths (TRU) collected 27c, or 1,2%, to R22,70. Pick n Pay (PIK) was up 83c, or 3,23%, at R26,53 and Shoprite (SHP) collected 97c, or 2,46%, to R40,45.

MTN was down R4,24, or 3,3%, at R124,25, but Telkom (TKG) rose R3,01, or 2,25%, to R137.

Among banks, Absa (ASA) lost R2, or 2,27%, to R86 and Nedbank (NED) was down 89c at R90,39.

In the news, shares in Coal of Africa Limited (CoAL, CZA) surged on rumours that ArcelorMittal (ACL) was planning to bid for the coal company. CoAL closed up R2,30, or 9,5%, at R26,50. Meanwhile, ArcelorMittal’s (ACL) shares were down R4,50, or 2,34%, at R188.

Sugar producer Illovo (ILV) was up 30c, or 1,27%, at R24. Wholesale retailer Massmart (MSM) recovered R1,01, or 1,68%, to R61. Hotels group City Lodge (CLH) climbed R1,16, or 1,83%, to R64,51.

South African near-dated futures ended sharply lower yesterday in line with overseas markets, with investors saying early gains on Wall Street were not convincing enough to piece together a recovery plan.

“Wall Street started out well but it still seemed too shaky to hold on to those gains," one trader said, adding that the market had been tracking weaknesses in European markets amid global growth fears as the price of crude oil nudged higher. The near-dated Alsi contract closed 410 points or 1,53% lower at 26330. A total of 45649 Alsi contracts changed hands, compared with Wednesday’s 36464 contracts, a Safex official said.

South African white maize futures ended slightly lower yesterday , as the market continues to track negative sentiment in the US maize market.

“The sell-off continues in the US because of forecasts calling for a good weather crop in that country," a trader said. December white maize ended R9 weaker at R2206, September fell R11 to R2114, and July was flat at R2066.

Dow Jones Newswires reported that a third successive day of fund liquidation, driven by a more optimistic crop outlook, pushed Chicago Board of Trade maize futures lower on Wednesday. July maize ended down 9 3/4c to $6,83 a bushel, September maize ended down 9 3/4c to $6,94 3/4 and December maize ended down 9 3/4c to $7,12 3/4.

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