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Send  Print  Share  RSS  Twitter  30 Jun 2009

The JSE Day

SA Stks Rev:JSE down as strong rand hits resources
Johannesburg, Jun 30 (I-Net Bridge) The JSE closed 300 points lower on Tuesday, led by a stronger rand which put pressure on resources and with the local index taking a lead from a weaker Dow, according to a local trader.
By 17:00, the JSE all share index had given up 1.14%, with resources shedding 2.01%. Gold counters declined 3.86%, but platinum miners inched 0.57% higher.
Banks ended 0.58% lower following an earlier rally, financials eased 0.79% and industrials slipped 0.35%.
The rand was last bid at 7.72 to the dollar from 7.79 when the JSE closed on Monday. Gold was quoted at US$927.45/oz a troy ounce from US$936.66/oz at the JSE`s last close, and platinum was at US$1,172/oz, from US$1,182/oz at its previous close.
A local trader said: "The local index is down after a pullback today. A stronger rand is putting pressure on resources and gold stocks, and the Dow also opened weaker, which hasn`t helped local stocks.
"Initially, the local currency strength helped financials, but the weaker Dow has also led those stocks to give back their earlier gains," the trader said.
Dow Jones Newswires reports that stocks declined as new housing and consumer-confidence data put a damper on investors` mood for the second-quarter`s final session.
In economic news on Tuesday, US consumer confidence retreated in June as expectations for the health of the economy six months out sank. The Conference Board said its index of consumer confidence for June fell to 49.3, from a revised 54.8 in May, which was originally reported as 54.9. Also, the S&P/Case-Shiller home-price index for April showed home prices
are still falling in major metropolitan housing markets.
With the quarter ending at Tuesday`s closing bell, traders will be looking for signs of window dressing, the phenomenon of fund managers buying winners in a bid to show clients that they picked the right stocks for their portfolios. Energy, consumer, industrial and financial stocks have been among the period`s top performers.
Heading into the final day of the second quarter, the S&P 500 has rallied 16%, according to FactSet data, helped by indications of a stabilising economy and signs that the credit crunch is thawing.
However, strategist Jim Paulsen of Wells Capital Management in Minneapolis said the S&P and other major indexes are almost unchanged since early May. He believes that could prove to be a blessing in disguise, since traders may have used the daily back-and-forth action in the market during that period to get their window dressing and quarterly profit taking out of the way.
"A lot of people are looking for some consolidation in this market," with many analysts calling for a 10% pullback that fits the traditional definition of a bull-market correction, Paulsen said. "But it`s possible that we could also be seeing consolidation just through the passage of time."
The dollar rose against the euro and yen and Treasury prices fell.
At 17:00 local time (15:00 GMT)
ALL SHARE (J203) 22049.420 22304.230 -1.14 -254.810
INDUSTRIALS (J257) 20827.160 20899.539 -0.35 -72.379
FINANCIALS (J580) 16030.310 16157.470 -0.79 -127.160
RESOURCES (J210) 39762.320 40578.871 -2.01 -816.551
GOLD (J150) 2311.650 2404.310 -3.86 -92.750
PLATINUM (J153) 63.030 62.670 0.57 0.360
BANKS (J835) 30481.670 30659.980 -0.58 -178.310
Value traded 8.969 billion rand
Volume 262.319 million shares
Highest value traded shares:
MTN Group 118.31 rand dn 0.69 rand
Sasol 269.98 rand up 3.38 rand
Anglo 223.00 rand dn 9.60 rand
Naspers N 203.00 rand up 6.50 rand
BHP Billiton 175.00 rand dn 3.00 rand
I-Net Bridge, Tel: +27-11-280-0693,
Copyright 2009 I-Net Bridge. All rights reserved.

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