[2008-07-22]  JSE higher on resources, but banks drop
THE JSE ended higher yesterday as investors chased after bargains in the badly beaten down resources and platinum sectors, but banks and financials capped further gains on profit-taking following recent sharp rises, traders said.

The all share index ended 0,33% up, lifted by a 1,90% rise in resources and a 2,10% gain in the platinum mining index. However, the gold mining index fell 2,56%.

Banks weakened 3,90%, financials sank 1,83% and industrials were 0,82% in the red.

“We have had little lead from overseas today. I’m not surprised to see resources bouncing back, because the sell-off on the likes of Anglo and BHP Billiton last week was overdone," one trader said. Stocks such as banks, retailers and financials, which posted massive gains last week partly on the back of interest rate cut hopes after Investec claimed that inflation data was overstated, succumbed to profit-taking, traders said.

On the JSE, resource giant Anglo American (AGL) advanced R11,50, or 2,74%, to R431,80 and BHP Billiton (BIL) collected R6,60, or 2,73%, to R248. Sasol (SOL) also reversed its strong losses on Friday to add R6,25, or 1,56%, to R406,25.

Gold miner AngloGold Ashanti (ANG) shed R12, or 4,41%, to R260 and Gold Fields (GFI) was R1,63, or 1,66% weaker, at R96,62.

Among platinum miners, Anglo Platinum (AMS) was down by R23, or 2,37%, to R946, but Impala Platinum (IMP) added R11,05, or 4,89%, to R237,05 and Lonmin (LON) rallied R20,50, or 5,66%, to R382,50.

Among industrials, brewer SABMiller (SAB) lost R1,98, or 1,14%, to R172,30, Richemont (RCH) added 86c, or 1,95%, to R44,96 and Barloworld (BAW) was up 30c to R70. Consumer foods brands maker Tiger Brands (TBS) was up R1,75, or 1,22%, to R145,75.


Cellphone carrier MTN lost R5,30, or 4,07%, to R125 after talks with India’s second-largest cellphone carrier, Reliance Communications, broke down.


Among banks, Standard Bank (SBK) was R4,70, or 5,52%, in the red at R80,40, while Nedbank (NED) was down by R3,20, or 3,17%, to R97,90. Absa (ASA) shed R2, or 2,17%, to R90 and FirstRand (FSR) weakened 30c, or 2%, to R14,71.

Retailer Truworths (TRU) fell 74c, or 2,85%, to R25,26, Pick n Pay (PIK) slumped R1,40, or 4,83%, to R27,60 and Foschini (FOS) slid R1,98, or 5,74%, to R32,52.

South African near-dated futures ended firmer yesterday, receiving a fillip from some bargain hunting in the resources and platinum sectors and a positive start on Wall Street. Dealers said it was felt that last week’s sell-off in resources was somewhat overdone.

The downturn in financials and banks, however, kept a lid on gains, with the market ending well off the day’s highs. The near-dated Alsi contract closed 45 points, or 0,18%, higher at 26061 from an intraday high of 26550.

A total of 39417 Alsi contracts changed hands from Friday’s 44620 contracts, a Safex official said.


South African white maize futures ended broadly lower yesterday, dropping for the sixth day on overnight losses on the US grain markets, traders said. September closed down R34 at R1859 a ton and December fell R44 to R1945, but the in-delivery July added R17 to R1834 rand. “Yes we’ve been dropping over the past week or so, and it’s the same thing if you look at CBOT’s (the Chicago Board of Trade’s) graph,” a trader said. Jitters ahead of SA’s crop estimates committee report on its latest production estimates were expected to keep the mood damp this week, he said.

Dow Jones Newswires reported that good crop weather extended the slide for CBOT maize on Friday, as prices plunged below technical support points.

September maize ended down 21 3/4c to $6,09 1/2 a bushel, December maize ended down 21 1/2c to $6,28 1/2 and March maize was down 21c to $6,47 3/4.

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