[2008-07-28]  JSE drops into red on global markets
THE JSE wrapped up the week with sharp losses in a low volume session on Friday following drops on overseas markets, with banks among the worst casualties partly on profit taking, traders said.

The all share index ended 1,58% weaker. Resources fell 1,38%, while the gold and platinum mining indices gave up 0,18% and 0,93% respectively. Banks were down 1,96%, financials gave up 1,98% and industrials weakened 1,67%.


“We are following overseas markets. I see Wall Street turning around, but I doubt the guys would respond to that at this stage,” one trader said, adding that Wall Street’s modest gains did not seem convincing enough for local investors “to leave their money on the table ahead of the weekend”.

“If Wall Street does hold on to these gains, you could say we’re laying the groundwork for a major rebound next week,” the trader said.


Dow Jones Newswires reported that US stocks rebounded sharply on Friday as demand for expensive goods rose unexpectedly last month, while the level of demand for new homes was higher last month.


On the JSE, banking group Standard Bank (SBK) dropped 75c to R87,74, Nedbank (NED) was down R1,58, or 1,54%, to R101,07, Absa (ASA) fell R1,55, or 1,55%, to R98,20 and FirstRand (FSR) lost 62c, or 3,90%, to R15,27.

On the resource index, Anglo American (AGL) gave up R3,42 to R406,99 and BHP Billiton (BIL) fell R4,11, or 1,73%, to R233,50. Sasol (SOL) was R9,50, or 2,45%, weaker at R378 as the price of Brent crude futures fell 1,65% to $124,36 a barrel. Diversified miner Exxaro (EXX) slumped R2,53, or 2,30%, to R107,50.


Gold miner AngloGold Ashanti (ANG) added R4,34, or 1,73%, to R254,60, but Gold Fields (GFI) lost R1,34, or 1,48%, to R89,26 and Harmony (HAR) was 94c, or 1,19%, lower at R78,06.

Among platinum miners, Anglo Platinum (AMS) was up R9,70, or 1,05%, at R934,70, but Impala Platinum (IMP) shed R1 to R227.

Consumer foods maker Tiger Brands (TBS) was steady at R142.

Retailer Truworths (TRU) dropped 60c, or 2,11%, to R27,80. Forest and paper products group Mondi (MND) was up 10c to R44,35.


MTN Group (MTN) was down R3,50, or 2,69%, at R126,50.

South African near-dated futures ended sharply lower on Friday in line with global markets, with banks and financials leading the downside amid renewed concerns over the US economy. The near-dated Alsi contract closed 281 points, or 1,09%, lower at 25430.

A total of 35566 Alsi contracts changed hands from Thursday’s 30124 contracts, a Safex official said.

South African white maize futures ended modestly higher on Friday for a second day running, with the market consolidating after an eight-day losing streak on a slight rebound on the Chicago Board of Trade (CBOT) and the weaker rand, a trader said.

The September contract closed R22 higher at R1857, while December was up R21 at R1936. The August contract was up R18 at R1832 rand. “The rand’s fall has stabilised things, and with CBOT pushing up slightly the market has settled a bit,” the trader said.

Dow Jones Newswires reported traders saying that CBOT corn futures rebounded slightly on Thursday as an oversold market prompted short covering. The market settled higher for the first time in six trading days.

Analysts said that after breaking more than $2, the market was due to bounce. But they said there seemed to be little support for a strong, sustained rally. Firmer crude oil helped stabilise corn, a trader added.

September corn closed up 1½ c at $5,73 a bushel, December corn closed up 1½ c at $5,92, and March was down 1½ c to $6,11¼ .

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