[2008-07-17]  JSE finishes below 27000, but banks rally
THE JSE ended lower for the fourth day in a row yesterday, weighed down by commodity stocks on faltering prices, but banks and financials soared as investors chased after bargains following recent sharp falls, traders said.

The all share index ended down 0,75% at 26876,950, its lowest level since January. Resources fell 4,22%, the platinum mining index slumped 4,59% and the gold mining index sank 2,50%.

However, banks skyrocketed 8,01%, financials soared 5,35% and industrials strengthened 2,05%.

“A large number of stocks are up, the fact that we’ve ended lower shows how resource-heavy our stock market is," a trader said.

After recent sharp falls, investors moved to pick up bargains on badly beaten stocks, which included banks, financials and industrials, but one trader said buying would be dictated by Wall Street’s performance.

“Wall Street is flat and that’s not helping in terms of direction," the trader said.

The mining sector suffered heavy losses on the back of falling metal prices, with the gold price following the decline in the price of crude oil, while platinum was down on concerns that slowing global economic growth would dampen demand for the white metal.

Anglo Platinum (AMS) sank R24, or 2,25%, to R1041 and Impala Platinum (IMP) fell R15,25, or 5,96%, to R240,75. On the resource index, Anglo American (AGL) fell R10,53, or 2,44%, to R420,60 and BHP Billiton (BIL) skidded R13,60, or 5,31%, to R242,50. Sasol (SOL) dropped R8,75, or 2,05%, to R418.

Among gold miners, AngloGold Ashanti (ANG) shed R9,51, or 3,45%, to R266, and Harmony (HAR) fell R3,65, or 3,78%, to R92,85.

Banks were the blue chips’ top gainers in what traders said was a recovery from oversold levels. Traders said, however, that the outlook for banks remained gloomy due to higher interest rates and prospects of further hikes. Standard Bank (SBK) climbed R4,93, or 6,57%, to R79,93, Absa (ASA) skyrocketed R8,05, or 9,79%, to R90,25, FirstRand (FSR) climbed R1,51, or 11,36%, to R14,80 and Nedbank (NED) surged R4,60, or 5,32%, to R91,10.

Swiss-based luxury goods group Richemont’s (RCH) share price rallied by R1,54, or 3,85%, to R41,54. Brewer SABMiller (SAB) was up R4,73, or 2,96%, at R164,48 and consumer foods maker Tiger Brands (TBS) rallied by R6,31, or 4,91%, to R134,80. MTN added 86c to R120,36 and Telkom (TKG) was up R5,75, or 4,38%, at R137.

South African near-dated futures ended in the red for the fourth successive session yesterday as commodity prices came off amid increasing global risk aversion.

The near-dated Alsi contract closed 281 points, or 1,09%, lower at 25405. A total of 38953 Alsi contracts changed hands, compared with Tuesday’s 39572 contracts, a Safex official said.

South African white maize futures fell by the daily limit yesterday , dropping for the third day in a row in line with continued sharp falls in the US markets, traders said. December white maize ended R45 lower at R2099, September ended down by the same margin at R2003, and July white, which trades without limits because it is in delivery, fell R65 to R1936.

Traders said the market would continue to track the Chicago Board of Trade (CBOT), which has been coming off from its June weather-induced buying spree.

Although the CBOT was dominating trader sentiment, the market was also watching the pace of exports and harvest progress for direction.

Dow Jones Newswires reported CBOT maize futures ended lower on Tuesday, failing to recover after being “ambushed” by plunging crude oil prices. September maize ended down 15 1/2c to $6,48 1/4, December maize ended down 15 1/2c to $6,66 3/4 and March 2009 maize ended down 15c to $6,85 1/4.


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