JSE tracks weaker US futures
November 19, 2009
By Gareth Vorster
The JSE ended in the red virtually across the board on Thursday amid weaker international markets, tracking Dow futures lower in particular.
A local trader pointed out that even at its current levels, the rand could not keep commodities in the black.
At 5pm the JSE all share index weakened 0.56%, with resources losing 1.28%. Platinum miners eased 0.52% and gold producers gave up 2.10%.
Banks were down 0.60% and financials declined 0.36%, but industrials collected 0.17%.
The rand was bid at R7.53/$, from R7.43/$ when the JSE closed on Wednesday.
Gold was quoted at $1,136.35/oz from $1,147.45 at the JSE's last close, and platinum was at $1,432/oz, from $1,437/oz at its previous close.
A local trader said: "We tracked international markets down this afternoon, with an eye on Dow futures in particular. Not even the rand at its current R7.50/$ level against the dollar can keep commodities in the black.
In a nutshell, weakness is across the board."
Dow Jones Newswires reported that US stocks opened lower Thursday as an analyst downgrade weighed on a slate of chip companies and on economic worries ahead of some morning reports.
Early on Thursday, the Dow Jones Industrial Average traded down 112 points, or 1.1%, to 10316.
For much of a two-week run in the major stock market indexes, that pushed all three to new highs on the year, materials and energy companies have been at the forefront.
Broadly, the gains stemmed from an upturn in global economic sentiment, as well as a slide in the dollar.
On Thursday, some of that appeared to be waning with the US dollar index in the green, while oil prices and those of several metals slid. Oil recently traded down 64 cents to $78.94 a barrel.
On the economic front, a weekly jobless claims figure that came in nearly as expected failed to offset some of the increased pessimism surrounding the world economy that was weighing on markets.
In its weekly report, the Labour Department said the number of US workers filing new claims for jobless benefits last week remained unchanged from the prior week, while total claims lasting more than one week declined.
On tap for later in the session will be leading indicators for October and the November Philadelphia Fed survey, both due at 10 a.m., EST.
Back in Johannesburg, Anglo American Plc lost R7.31, or 2.25%, to R317.58 and BHP Billiton declined R1.96 to R230.04.
Petrochemicals group Sasol was down 51 cents to R294.99.
Paper group Sappi collected 75 cents, or 2.49%, to R30.85, but Mondi gave up R1.08, or 2.55%, to R41.27.
ArcelorMittal dropped R2.49, or 2.28%, to R106.51 and Kumba Iron Ore fell R2.75, or 1.07%, to R254.87.
AngloGold Ashanti shed R11.01, or 3.28%, to R324.99, Gold Fields weakened 10 cents to R106.95 and Harmony was off R2.23, or 2.76%, to R78.55.
Platinum miner Anglo Platinum collected R2.88 to R705, but Impala Platinum edged down R1.80, or 1.06%, to R168.70 and Lonmin shed R4.35, or 2.01%, to R211.66.
Aquarius declined R1.94, or 4.50%, to R41.20.
Elsewhere on the JSE, brewer SABMiller added R9.09, or 4.38%, to R216.75.
It earlier reported adjusted earnings per share of US 80.0 cents for the six months ended September 2009, up 6% from 75.2 cents a year ago.
Adjusted EPS were 49.9 UK pence compared with 38.9 pence and 648.9 SA cents from 585.8 cents a rise of 10%.
Basic earnings per share were down 34% to 63.0 cents from 94.8 cents before.
The group said lager volumes decreased 1% on an organic basis with growth in Africa and Asia offset by weaker volumes in other markets.
Group revenue was down 6% to $13.355 billion before and EBITA was 2% lower at $2.187 billion, impacted by weakness of the group's major operating currencies against the US dollar compared with the same period last year.
Imperial subsided R1.66, or 1.99%, to R81.88, with Barloworld down R1.90, or 3.53%, to R51.90.
Among banks, Absa declined R1.84, or 1.44%, to R126.
Investec Plc eased 75 cents, or 1.33%, to R55.70.
The investment banking group earlier reported basic headline earnings per share of 20.4 pence for the six months to September 30, from 25.6 pence earlier.
Basic earnings per share were at 22.2 pence from 25.6 pence earlier.
The board declared a dividend of 8 pence per ordinary share from 8 pence earlier.
Operating profit decreased 10.7% to £216.0 million from £241.8 million, while adjusted earnings attributable to shareholders before goodwill and non-operating items decreased 3.1% to £160.4 million from £165.6 million previously.
Sugar group Illovo inched down 33 cents, or 1.03%, to R31.67.
It earlier reported a dip in first half diluted headline earnings per share to 106.2 cents from 109.4 cents for the first half a year ago.
Headline earnings were 3% lower at 106.5 cents a share for the six months to end September 2009 versus last year's 109.9 cents a share.
The company declared an interim dividend of 32 cents a share. Media group Naspers shed R11.75, or 4%, to R282.
Among retailers, Woolies weakened 38 cents, or 2.17%, to R17.12.
Construction group Aveng was down 88 cents, or 2.15%, to R40.10 and WBHO was R2.99, or 2.53%, lower at R115.
Among telecommunications groups, MTN Group edged up 50 cents to R119.60, and Vodacom added 40 cents to R58.
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