Profit taking leads JSE into the red
October 31, 2009
By Gareth Vorster
The JSE saw a turnaround in the afternoon to close in the red on Friday amid profit taking.
At 5pm the JSE all share index had fallen 0.71%, with resources down 1.68%. Platinum producers edged 0.43% lower and gold counters slipped 2.80%. Banks gave away 1.40% and financials dropped 0.85%, but industrials were 0.42% higher.
The rand was last bid at R7.78/$ from R7.76/$ when the JSE closed on Thursday. Gold was last quoted at $1 039.55/oz from $1 040.45 at the JSE's last close, and platinum was at $1 319/oz, from $1 334/oz at its previous close.
A local trader said: "We started off firm this morning on the back of a stronger Dow and trading in the East, but have drifted lower during the day.
"I can only assume that there is a bit of profit taking going on because various bits of US data came in better than expected, yet the market continued to turn."
Dow Jones Newswire reports that US stocks continued moving lower on Friday, led by the financial and materials sectors, as the risk-aversion trade that appeared to fade during Thursday's rally came back into play.
The Dow Jones Industrial Average was recently down 90 points, or 0.9%, to 9874.
The Dow's drop followed a Thursday surge on better-than-expected economic growth in the third quarter that sent the measure to its biggest one-day point gain since July 15. But stocks had been sliding for four consecutive sessions prior to Thursday and, as the euphoria over the third-quarter GDP report wears off, the slump appears be resuming.
Among the slew of economic data released on Friday, spending by Americans fell 0.5% in September, the largest drop since December 2008, although it was in line with economists' expectations.
Consumer confidence levels slipped in October compared with the previous month, although they came in above preliminary readings as well as economists' expectations.
Personal income was flat compared to August, in line with expectations, while a key price gauge reiterated that inflation wasn't an immediate threat. US labour costs continued to stagnate in the third quarter. And the Chicago purchasing manager's index climbed in October from September, as production and new orders rose.
On the JSE, Anglo American Plc dropped R3.48, or 1.18%, to R292 and BHP Billiton shed R5, or 2.26%, to R215.91. Sasol fell R4.80, or 1.60%, to R295.80.
AngloGold Ashanti shed R11.09, or 3.68%, to R289.90, Gold Fields declined R1.75, or 1.71%, to R100.50 and Harmony weakened R2.30, or 2.85%, to R78.50.
South Africa's third-largest gold producer on Friday reported a 5.6% quarter-on-quarter increase in production to 373 431 ounces in the September quarter from 353 752 ounces in the June quarter.
The company reported a net loss of R29 million for the three months to end September 2009, compared with a R236 million profit in the June quarter. Higher gold production helped to overcome the negative impact of a 3% drop in the average rand gold price received to R239 438/kg. Total revenue was 3% higher at R2.7 billion.
After accounting for an 11% increase in cash operating costs to R2.2 billion, the main drivers of which were electricity and labour, cash operating profit was 26% down on the previous quarter at R552 million.
Platinum miner Lonmin eased R8.79, or 4.37%, to R192.50. Among industrials on the JSE, SABMiller gained R2.31, or 1.12%, to R209.25 and British American Tobacco advanced R3.27, or 1.31%, to R253. Electronics group Reunert wavered R1.09, or 1.93%, to R55.41.
Standard Bank moved R1.30, or 1.31% lower, to R98.20, Nedbank slipped R3.10, or 2.55%, to R118.40, and Absa lost R2.49, or 1.96%, to R124.51. Old Mutual declined 25 cents, or 1.79%,
to R13.75.
Santam gained R1, or 1.01%, to R100.50. Retailer Lewis fell 90 cents, or 1.62%, to R54.70. Massmart improved R2.25, or 2.55%, to R90.55 and Mr Price was up R1, or 2.87%, to R35.90.
Construction group Murray & Roberts 89 cents, or 1.60%, to R56.38, and Aveng profited R1.51, or 3.75%, to R41.75. MTN Group picked up one rand to R117.50.
|
|
