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Stocks fall 5% in quiet week as Greenspa... Panic hits market as rand weaken...
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Stocks fall 5% in quiet week as Greenspan verdict awaited
Julie Walker
A WEEK of inertia ahead of US Federal Reserve governor Alan Greenspan's speech on Tuesday led to profit-taking which resulted in an almost 5% decline in the JSE All Share Index to 8 538 points.
The rand slipped to R6.30 on dollar strength; expectations are that Greenspan will lift US interest rates.
Of the dozen JSE companies to report results, nine improved on previous earnings while two made less.
Information technology newcomer Bryant was obliged to tell the truth about its position - not a R6.4-million profit in the 16 months to June 1999, but a R4.4-million loss. The share shed 3c to 12c.
Another profit warning led to a R1.30 drop for Trencor to R5.70 and a 20c fall by holding company Mobile to 40c.
Another 22 companies issued cautionaries. Significant among these was that of CTP Caxton, one of the media companies partly in the Johnnic stable. Johnnic made news with the announcement that four executives are to leave Mega (formerly CNA Gallo), which delisted a year ago.
The tightly held CTP firmed R4.50 to R64.50 and was offered at R70, but Caxton eased 35c to R5.30. Johnnic - more than R100 a fortnight ago - slipped just R1 to R89 in a market where index leaders were whacked.
The plcs took pain: Anglo American ditched R43 to R363, SA Breweries R4 to R60.50 and Old Mutual R1.25 to R16.15. Only Billiton edged up. De Beers was steady at R170.20.
Rembrandt is to make an offer to the minorities of HL&H at R8.50 provided HLH's sugar business can be sold to Tongaat-Hulett for R900-million. HL&H jumped R1 to R7.50; Rembrandt closed at R56.40.
Consolidated African Mines, which had proposed to merge with JCI Gold (the biggest Western Areas shareholder) jumped from 46c to 60c on talk of a bid for control. JCI Gold, under the stewardship of old Johnnies stalwart Vaughan Bray, added 40c to R4.30 and Western Areas added 40c to R20.50.
Randgold, the other operating player in the now thwarted eight-company JCI reshuffle, shed 85c to R5.40 ahead of this week's results and on worries that it could be left out in the cold.
Good earnings from Northam and the announcement that production is to increase by 30% at a capital cost of only R134-million, plus good platinum prices, helped the share gain R1.10 to R8.70. Implats and parent Gencor were buoyant ahead of results.
SA Chrome jumped from 44c to 59c on ferrochromesmelter possibilities.
MGX hit R40 before easing to R37.05 on a cautionary.
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