[2008-09-11]  JSE ends a touch lower on metals
SOUTH African stocks ended a touch lower yesterday , with miners the worst hit as commodity prices continue to spiral lower on the stronger dollar, traders said.

The overall index wobbled between positive and negative as traders juggled views that stocks were at “exceptionally oversold levels" and that the stagnating global economy would erode future earnings anyway.

“The rand is helping and there’s some degree of bargain hunting, but it is hampered by a very, very negative global macroeconomic outlook," a trader said.

The all share index ended 0,19% lower.

Resources gained 0,50%, but the gold and platinum mining indices were down 1,41% and 2,52% respectively.

Banks gained 0,75%, financials added 0,48%, while industrials weakened 1,19%.

On the JSE, Anglo American (AGL) recovered R3,52, or 1,14%, to R313,02 and BHP Billiton (BIL) recouped R3,50, or 1,80%, to R198. Sasol (SOL) gained R4,80, or 1,38%, to R352,10.

Gold miner AngloGold Ashanti (ANG) shed R2,44, or 1,39%, to R173, while Goldfields (GFI) lost 85c, or 1,44%, to R58,10.

Platinum miner Angloplat (AMS) eased R36, or 4,52%, to R761 and Impala Platinum (IMP) dipped R2,49, or 1,28%, to R191,50.

Elsewhere on the JSE, Old Mutual (OML) gave up 20c, or 1,42%, to R13,90. This was after the financial services group’s shares lost over 6% in early trade after it announced the resignation of CE Jim Sutcliffe, as well as an expected $135m write-down on Fannie and Freddie exposure. Sanlam (SLM) inched up 10c to R18,40.

Among industrials, brewer SABMiller (SAB) was up 200c, or 1,18%, to R171, while consumer food brands maker Tiger Brands (TBS) lost 75c to R144,20. Richemont (RCH) dropped R2,21, or 4,91%, to R42,79.

Among banks, Standard Bank (SBK) added 62c to R93,50, Nedbank gained R3,15, or 3,04%, to R106,85, while Absa (ASA) weakened R1,49, or 1,30%, to R113,01.

MTN Group was 136c, or 1,15%, in the red at R117 and Telkom (TKG) surrendered R1 to R130.

South African near-dated futures closed in the red yesterday, driven mainly by poor trade on international markets. The near-dated Alsi contract ended 143 points lower at 22900. “Local markets are tracking movement in overseas markets. The market is very volatile at the moment," a trader said.

A total of 64856 Alsi contracts changed hands compared with 83408 on Monday, a Safex official said.

South African white maize futures were slightly higher yesterday on the weakening currency, but failed to end at convincing levels as traders refrained from making large moves ahead of the US crop production forecast later in the week. “The market wasn’t convincing at all today. With the rand’s overnight weakening, markets should have traded at much higher levels,” a trader said.

The December white maize contract was up R15 to R1903 a ton, March maize gained R18 to R1985 and in-delivery September maize was up R17 to R1839.

“There is also a lot of uncertainty in the market ahead of Friday’s US department of agriculture report,” the trader said, adding that the market was likely to remain volatile ahead of the report, and that local markets would look to the US for direction.

Dow Jones Newswires reported that Chicago Board of Trade (CBOT) corn futures ended lower on Tuesday on pressure from lower crude oil, but the market trimmed losses from earlier in the day on support from a weaker dollar and climbing soybeans, a trader said.

After plunging early in the session, some contracts briefly ventured into positive territory in the afternoon before retreating, with traders noting that corn remained unable to maintain rallies. September maize ended down 3½c to $5,29½ a bushel, December maize ended down 4½c to $5,44½ , and March maize ended down 4¼c to $5,63½ .

Source: Copyright © 2005 BDFM Publishers (Pty) Ltd