|
[2008-08-05] JSE ends in red on miners, world markets
THE JSE ended in the red yesterday following a combination of lower commodity prices, weaker global markets and a stronger rand which weighed on heavyweight mining and resource stocks. Weaker vehicle sales for last month also weighed on sentiment.
The all share index ended 2,37% lower, with a 5,4% tumble in gold miners and a 5,62% dip in platinum shares. Resources were off 4,62%.
Industrials were 0,57% lower. However, banks were up 0,95% and financials added 0,11%.
A local trader said there was rotation from resources and miners into banks and financials.
He said the firm rand was weighing on resources and dual-listed stocks, but manufacturers and industrials were also feeling the brunt of the strong currency.
When the rand is firm it makes local shares more expensive for foreign investors.
“We are definitely seeing a bit of sector rotation from resources and into banks and financials, which is the undervalued sector at this stage,” the trader said.
“Commodity prices are lower, the rand is stronger and vehicle sales data that came out earlier today was weaker. The Dow also opened weaker and European markets are weaker. So there’s just no reason for the market to move up at this stage,” another trader said.
Dow Jones Newswires reported that after a run in financials helped pare any losses on Wall Street, yesterday began with a slide for banks that helped push the Dow Jones industrial average lower by 50 points.
Among gold counters on the JSE, AngloGold Ashanti (ANG) was off R4,50, or 1,95%, at R226,51 and Harmony (HAR) lost R4,60, or 6,02%, to R71,80.
Gold Fields (GFI) was down R8,70, or 11,01%, at R73,26 after a 10,70% fall on Friday.
Platinum miner Anglo Platinum (AMS) shed R45,01, or 4,95%, to R865 and Impala Platinum (IMP) lost R11,95, or 5,56%, to R203.
On the resource index, Anglo American (AGL) was down R21,66, or 5,43%, to R377 and BHP Billiton (BIL) gave up R7,87, or 3,44%, to R220,92.
Sasol (SOL) lost R10,99, or 2,85%, to R374.
Among industrials, Richemont (RCH) was off 62c, or 1,46%, to R41,88 and PPC was 95c, or 2,92% softer, at R31,55. SABMiller (SAB) added R3,19, or 2,14%, to R152,50.
Among banks, Standard Bank (SBK) was up 79c, or 0,92%, to R87,01 and Nedbank (NED) added R2, or 1,98%, to R103.
South African near-dated futures ended deep in the red yesterday on the back of a combination of lower commodity prices, weaker world markets and a stronger rand.
The near-dated Alsi contract ended a whopping 786 points, or 3,19%, weaker at 23870 after plunging by over 1000 points on Friday.
A total of 50941 Alsi contracts changed hands compared with 51655 on Friday, a Safex official said.
South African white maize futures fell by the daily limit yesterday, driven by the stronger rand and weaker maize prices on the Chicago Board of Trade (CBOT).
“The stronger rand caught many traders offside,” a trader said. The September contract closed R45 lower at R1799 a ton while December fell R45 — the allowable daily trading limit — to R1886.
The in-delivery August contract, which trades without limits, fell R97 to R1720.
CBOT ended lower due to a heat wave moving across the corn belt, which is expected to pass by the end of the week, the trader said.
Dow Jones Newswires reported CBOT maize futures settled sharply lower on Friday on continuing fund liquidation and a “non-threatening” weather outlook.
September maize closed down 22˝c to $5,65 a bushel, December maize closed down 22˝c to $5,85, and March closed down 22˝c to $6,05.
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.
|
