JSE down on 'scepticism'
June 2, 2009
By Gareth Vorster
Johannesburg - Stocks opened lower on Tuesday, taking a breather after good gains over the past few days and hitting some scepticism after reaching high technical levels, according to a local trader.
By 9.26am, the JSE all share index had given up 0.76 percent, with resources down 1.27 percent, platinum counters losing 0.84 percent and gold miners declining 1.68 percent. Banks shed 1.07 percent, with financials down 0.59 percent and industrials relatively flat, down 0.21 percent.
The rand was last bid at R8.09 to the dollar from R7.94 when the JSE closed on Monday. Gold was quoted at $971.95 per ounce from $976.38 at the JSE's last close, and platinum was at $1 213.50 per ounce, from $1 220 at its previous close.
A local trader said: "We have had a good run over the past few days, testing serious technical levels.
"There seems to be some scepticism over these levels and the market has pulled back a bit, taking a breather.
"The Dow also came off highs last night," the trader said.
Dow Jones Newswires reported European stocks are expected to open a touch lower on Tuesday, as investors bank some of Monday's hefty gains ahead of a number of economic data releases that are set to provide more clues about the global economic outlook.
"The first day of June was marked by bumper gains for equities on both sides of the Atlantic," said Matt Buckland, a dealer at CMC Markets.
"As always, however, a rally like this does leave the market prone to profit taking and a degree of that may be seen at the open."
Buckland expected Europe's major indexes to fall at the open, with London's FTSE 100 index set to drop 16 points to 4 490.
“Still, there's a raft of fundamentals due for release in the coming hours that may be able to offer some meaningful direction”, added Buckland.
UK consumer credit and mortgage approval data will offer a solid indication of whether credit conditions are still thawing, eurozone unemployment will give further insight ahead of the ECB's possible move into quantitative easing later in the week, while US pending home sales threaten to disrupt any optimism that's being seen across the Atlantic, said Buckland.
And there was plenty of this optimism on Monday, as a wave of better-than-expected economic data fuelled a broad rally on Wall Street.
Overall, the Dow Jones Industrial Average tacked on 221.11 points, or 2.6 percent, to 8721.44, marking its biggest one-day gain since May 18.
The Dow's close also marked its highest close since January 8.
On Tuesday, Asian stock markets have largely traded with a positive bias so far, buoyed again by hopes of a rebound in the global manufacturing sector.
Japan's Nikkei 225 closed up 0.3 percent, but Hong Kong's Hang Seng index was last seen 1.2 percent lower.
In the currency markets, the dollar remains unloved, although it has rebounded slightly after falling to multi-month lows against several currencies on Monday as investors piled into riskier currencies, with many seeing the global recession as contained.
The UK pound had reached a seven-month high of $1.6495, according to EBS, while the euro also hit a fresh high for the year, at $1.4246.
At 06:30 GMT, the pound stood at $1.6387 and the euro at $1.4115, while the dollar stood at Y96.42.
Crude oil futures have headed lower early on Tuesday, as investors take profits following the commodity's gains of more than 12 percent during a six-session winning streak to touch a nearly seven-month high.
At 06:30 GMT, the July crude contract on Globex stood at $67.64 per barrel, down $0.94, having settled at $68.58 a barrel, up $2.27, or 3.4 percent, on the New York Mercantile Exchange.
Back in Johannesburg, Anglo American gave up R2.20 to R247.30 after an 8.86 percent gain yesterday, and BHP Billiton shed R2.95, or 1.44 percent, to R202.05.
Petrochemicals group Sasol lost R4.80, or 1.56 percent, to R302.20.
Gold miner AngloGold Ashanti declined R8.55, or 2.56 percent, to R325.50, with Harmony losing R1.73, or 1.81 percent, to R93.62. Platinum miner Anglo Platinum backtracked R5.45 to R582.05 and Impala Platinum lost R1.89 to R198.11. Lonmin edged down R2.40, or 1.20 percent, to R198.
In diversified miners, African Rainbow dropped R2.64, or 1.86 percent, to R139, but Highveld Steel gathered R1, or 1.56 percent, to R65. Exxaro declined R2, or 2.34 percent, to R83.50, Kumba Iron Ore lost 50c to R205.50, with ArcelorMittal down R2, or 1.94 percent, to R101.
Among industrials on the JSE, brewer SABMiller added 82c to R166.93, with AECI profiting R1.75, or 3.78 percent to R48. Tiger Brands however dropped R4.29, or 2.96 percent, to R140.55, with Imperial down R1.10, or 1.79 percent, to R60.40.
Banking group Standard Bank lost R1.09, or 1.28 percent, to R84.27, and Nedbank gave up R1.75, or 1.88 percent, to R91.25. Absa was down R1.34, or 1.31 percent, to R100.86.
Among retailers, Foschini edged 36c lower to R49.54.
Pharmaceutical company Adcock Ingram was down R1.15, or 2.63 percent, to R42.50. Earlier the group reported diluted headline earnings per share of 203.7c for the six months ended March 2009 from 169.9c a year ago.
The company declared a maiden dividend of 70c per share.
Revenue rose to R1.956-billion from R1.619-billion a year ago, while turnover was 23 percent higher at R1.897-billion on the back of strong volume growth from the antiretroviral tender awarded in the second half of the previous financial year, and reasonable volume growth in the Hospital segment.
Net profit was 20 percent better at R358.98-million.
Pricing accounted for less than 5 percent of the increase in turnover, primarily from the 6.5 percent Single Exit Price increase granted in May 2008.
Turnover grew despite the loss of a significant agency in The Scientific Group in late 2008, which contributed R27-million to revenue in the prior period, loss of tenders to the value of R22-million in the Hospital segment and the conversion of certain ephedrine containing over-the-counter brands to prescription-only products in April 2008, which led to a decrease of R16-million in revenue when compared to the first half of the prior year.
Adcock also said that it is withdrawing its firm intention to acquire Cipla Medpro South Africa (CMSA).
The company said CMSA has failed to give its views on the merits of the proposed transaction, despite its public undertakings to do so and has instead placed the stated opposition of its principal supplier, Cipla India, at the forefront and has attempted to discourage Adcock from proceeding with the proposed transaction.
Electronics Group Reunert lost R1.75, or 3.98 percent, to R42.25.
Telecommunications group Vodacom gained 80c, or 1.49 percent, to R54.45 with Telkom unmoved, down a 1c to R37.19.
Earlier Telkom announced the successful completion of the accelerated bookbuilding of Vodacom shares, raising R1.54-billion for "ineligible shareholders".
Telkom placed of 28.993 million shares of Vodacom on behalf of "ineligible shareholders", with institutional investors through an accelerated bookbuild offering.
The Vodacom shares were placed at a price of R53 per share.
As set out in the circular to Telkom shareholders dated 2 March 2009, the directors of Telkom, in consultation with Vodafone, determined that Telkom US shareholders would be regarded as "ineligible shareholders" for the unbundling of Vodacom shares to shareholders of Telkom completed on 25 May 2009 and would therefore not receive Vodacom shares in such distribution.
The proceeds from the offering, net of applicable fees, expenses, taxes and charges, will be distributed to the "ineligible shareholders" in proportion to their entitlement to Vodacom shares, Telkom said.
Publisher Naspers lost R1.90 to R195.20.
|
|
