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Last Updated: Tuesday, 09 February 2010 18:07:02

JSE consolidates ahead of the weekend

Published: 2009/11/20 01:06:46 PM

THE JSE was flat by noon today seeing some profit taking and consolidation ahead of the weekend, a trader said.

In noon trade, the JSE all share index was flat, down 0.10%, with resources also flat, up 0.08%. Platinum miners weakened 0.69% while gold producers added 1.44%.

Banks were down 0.53%, financials eased 0.18% and industrials declined 0.29%.

The rand was bid at R7.52/$, from R7.52/$ when the JSE closed yesterday. Gold was quoted at $1,141.64 a troy ounce from $1,136.35 at the JSE's last close, and platinum was at $1,425.90/oz, from $1,449/oz at its previous close.

"We are flat at the moment. We are consolidating ahead of the weekend," the trader said.

"It is still choppy and we are seeing interest coming back at these low levels. It's not too surprising to see profit taking.

"There is a move from some of the risk. There is not too much economic news to move the market. Markets have had big runs and now they are consolidating and there is profit taking.

"I don't think we can read this as a reversal of the trend. The primary trend is still in place and the dollar remains weak," he said.

"The market is aware that it has moved up quite a bit. The rand has weakened, but not too dramatically. It's not doing too much for the market at this stage," he added.

Dow Jones Newswire reported that the FTSE 100 maintained gains. The mining sector led the index higher, rebounding from the lows seen yesterday. Rio Tinto is +0.6%, rising upward after an initial fall following an equity downgrade. With little news flow and Thanksgiving next week, traders are bracing themselves for further low volumes, which appears to be the trend of late. There are no economic data points for the UK or the US today.

The FTSE 100 had last collected 0.73%.

On the JSE, Anglo American plc advanced R1.42 to R319, but BHP Billiton inched 4 cents lower to R230.

Petrochemicals group Sasol lost R2.38 to R292.61.

Paper group Sappi collected 95 cents, or 3.08%, to R31.80.

Kumba Iron Ore shed R3.37, or 1.32%, to R251.50.

AngloGold Ashanti picked up R4.61, or 1.42%, to R329.60, Gold Fields added R1.66, or 1.55%, to R108.61 and Harmony gathered 79 cents, or 1.01%, to R79.34.

Platinum miner Anglo Platinum gave up R4.50 to R700.50 and Impala Platinum lost R1.54 to R167.16, but Lonmin gained R3.38, or 1.60%, to R215.04.

Elsewhere on the JSE, SABMiller weakened 51 cents to R216.24, Barloworld was off R1.43, or 2.76%, to R50.47, Remgro gave up R1.65, or 1.84%, to R87.85 and Imperial fell R1.48, or 1.81%, to R80.40.

However, Famous Brands added R1.45, or 6.92%, to R22.40.

Among banks, Standard Bank declined 73 cents to R96.15 and Nedbank weakened 76 cents to R114.74.

Financial services group Old Mutual collected 32 cents, or 2.19%, to R14.91, but Sanlam was down 22 cents to R21.92.

Media group Avusa shed R1.30, or 7.51%, to R16. Earlier it reported headline earnings of 39 cents for the 6 months ended September 30, from 97 cents previously.

An earnings per share was at 44 cents, from 155 cents previously, a drop of 72%.

Revenue from continuing operations decreased 5% from R2.3bn to R2.2bn.

The group reported operating profit of R77 million, from R177 million earlier, a decline of 56%.

Operating costs, revealed a marginal R3 million increase over last year's costs, 'reflect the successful implementation of group-wide cost-cutting initiatives," the group said.

It further pointed to a 20% decline in advertising revenues with newspaper, magazine, digital and out-of-home businesses advertising sharply lower in what it termed an extremely tough trading period.

"In particular, recruitment advertising reduced as employers shed jobs and limited appointments," it said.

Retailer Pick n Pay weakened 93 cents, or 2.27%, to R40, Lewis was down R1.17, or 2.27%, to R50.48 and JD Group declined 66 cents, or 1.51%, to R43.04.

Liberty International was down 70 cents, or 1.14%, to R60.80.

Construction group Aveng moved 70 cents, or 1.75% lower, to R39.40 and WBHO declined R1.86, or 1.62%, to R113.14.

Telecommunications group MTN group eased 38 cents to R119.22, Telkom declined 35 cents to R39.92 and Vodacom weakened 54 cents to R57.46.

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