JSE slips on resources, profit taking
May 15, 2008
By Tiisetso Motsoeneng
Johannesburg - Stocks dipped at the JSE's opening on Thursday on profit taking following a record-breaking performance the day before. BHP Billiton was among the worst casualties after investors reacted to news that it may add cash to its Rio Tinto offer.
At 9.35am, the all share index was down 0.49 percent. Resources fell 1.10 percent, the gold mining index was off 1.54 percent but the platinum mining index added 0.25 percent.
Banks were up 0.30 percent, financials were flat (+0.03 percent) and industrials added 0.22 percent.
The rand was bid at R7.63 to the dollar, unchanged from when the JSE closed yesterday, while gold was quoted at $868.00 an ounce from $867.15 at the JSE's last close.
"It's on resources again, with BHP Billiton leading the pack on rumours that it was raising cash to add to its offer for Rio Tinto. The markets are concerned that it might negatively affect its earnings," one trader said.
The trader added that following a strong performance yesterday, there was limited scope for a further upside move today due to pockets of profit taking.
On the resource index, BHP Billiton was off 2.23 percent, or R7, to R307.50 after breaking records yesterday on vague talk that China's Chinalco planned to increase its stake in the group. Rival Anglo American was down R3.50 to R502.99.
Sasol lost R4.75 to R474.75. Brent crude futures were last trading at $122.52 per barrel.
AngloGold Ashanti was down R2.80 to R294, Harmony lost 3.39 percent, or R3.26, to R92.99 and Gold Fields slipped 1.27 percent, or R1.32, to R102.89.
Anglo Platinum added 1.30 percent, or R17, to R1 328 and Impala Platinum inched up two cents to R331.02.
In the news, brewer SABMiller rallied 2.78 percent, or R4.98, to R183.98 after its year-end results beat analysts' expectations. It reported adjusted earnings per share (EPS) of 1,021.2 South African cents for the year ended March 2008 from 847.1 cents a year - an increase of 21 percent.
In US cents, adjusted EPS rose 19 percent to 143.1 (US) cents from a previous 120 (US) cents. Basic EPS were up 22 percent to 134.9 (US) cents.
Specialist banking group Investec Ltd was off 18 cents to R55.22 and Investec Plc was down 12 cents to R54.20. It earlier reported diluted headline earnings per share of 46.6 pence for the year ended March from 48.1 pence a year ago.
Wholesaler Massmart was down 26 cents at R73.04. It reported that for the 46 weeks to May 11 2008, its total sales increased to R34.5 billion, a growth of 12.5 percent over the prior period, and comparable store sales grew 10.9 percent.
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