[2008-07-16]  Gold is bright spot on JSE as platinum falls
THE JSE ended more than 2% lower yesterday , following similar drops overseas amid renewed credit worries, with platinum miners the worst hit, partly on a weaker white metal price, traders said.

Gains on the local bourse were restricted to the gold mining sector as the price of bullion rose to the best level in about four months. The all share index ended 2,31% weaker at 27079,110, weighed by a massive 7,31% drop in the platinum mining index and a 3,58% loss in resources. The gold mining index, however, rallied 5,39%.

Banks fell 0,36%, financials were down 0,61% and industrials were 1,04% in the red.

“The market is saturated with bad news," Andrew Todd of BoE Stockbrokers said. He said although the market seemed to be near the bottom, it would continue to take the lead from global markets, particularly the US markets, where credit worries had come back to dog investors.


Back on the JSE, platinum miners dominated the losers’ board, “probably because of investors selling out of the sector to buy into the gold shares," Todd said. “The platinum price is down but not to the extent that the stocks are showing."

Anglo Platinum (AMS) plunged R111, or 9,44%, to R1065, Impala Platinum (IMP) plummeted R21, or 7,58%, to R256, and Lonmin (LON) dropped R15,07, or 3,63%, to R400,43.

However, gold miners bucked the weaker trend on the exchange and the mining sector as the price of gold remained firm as credit worries and a weak dollar heightened its appeal as a safe investment asset.

Shares in AngloGold Ashanti (ANG) rose R19,01, or 7,41%, to R275,51 and Gold Fields (GFI) soared R5, or 5,15%, to R102. Harmony (HAR) added R1,75, or 1,85%, to R96,50. On the resources index, Anglo American (AGL) fell R21,37, or 4,72%, to R431,13 and BHP Billiton (BIL) tumbled R9,40, or 3,54%, to R256,10. Sasol (SOL) gave up R11,25, or 2,57%, to R426,75.

Elsewhere, industrial heavyweight Barloworld (BAW) fell R1,69, or 2,54%, to R64,81, luxury good group Richemont (RCH) was 60c, or R1,48, lower at R40, and brewer SABMiller (SAB) shed 25c to R159,79.

Banks were mixed with Standard Bank up 10c to R75, while Nedbank (NED) lost R1, or 1,14%, to R86,50.

Telkom (TKG) gained 25c to R131,25. IT group Datatec (DTC) was 60c weaker at R23.


South African near-dated futures ended deep in the red yesterday as US stocks fell sharply after a wave of selling overseas and continued concerns about the financial sector. The only shining light on the bourse was gold miners, which benefited from a higher gold price. The near-dated Alsi contract closed 408 points, or 1,55%, lower at 25830. A total of 39572 Alsi contracts changed hands, compared with Monday’s 24563 contracts, a Safex official said.

South African white maize futures ended lower for the second day running yesterday following overnight losses on Chicago Board of Trade (CBOT) maize prices, traders said. December white maize ended R41 lower at R2144, September ended down R40 at R2048, and in-delivery July white was R19 lower at R2001.

Traders said the market would continue to track CBOT, which has been coming off from its recent months’ weather-induced buying spree. “CBOT dropped sharply last night on the back of a bearish weather forecast and we followed suit,” one trader said. Although CBOT is dominating trader sentiment, the market is also watching the pace of exports for support.

Dow Jones Newswires reported weather patterns continued to weigh on CBOT maize futures on Monday, with prices sharply lower in a rare close below the 50-day moving average. September maize ended 27c to $6,63 a bushel and December maize ended down 27c to $6,82. The July contract expired on Monday, with prices down 23c to $6,57.

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