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Gold alleviates the misery in a week of ... |
Gold alleviates the misery in a week of volatility and gloomGOLD saved the JSE from some misery as it jumped above $300/oz. The all-gold index collected a handsome 22% to 1 283 points as golds enjoyed the most interest for some time. Short covering by hedge funds was believed to be behind the rise. Top of the pops was Gold Fields, which added 31% to R48.60. Anglogold climbed 22% to R355.60 in good volume. Other than for ERPM, the whole gold board bucked up. But the all-share index shed 4% to 4 959 after going lower, reminding those who hoped that drops were a thing of the past month to trade carefully in times of volatility. Financials and industrials, which ticked up last week, took another smack: Dimension Data from R26 to R22, AMB from R38 to R29.90, SA Breweries from R100 to R86. Although there were no new factors, the JSE responded to falls in world equity markets triggered by worries of protracted recession, reductions in corporate earnings and any other gloom. Volatility is high: a late rally on Friday lifted the all-share index after it had lagged all day. The JSE said Karos was late with financial statements. It shed 43% to 45c on news that new controlling shareholder Mövenpick is not obliged to offer minorities 110c. It later picked up to 65c. Paradigm and Logtek announced they were considering a merger; Paradigm shed 90c to 370c but Logtek added a net 50c to 600c after going higher. CS Computer Services listed at 140c after a placement of shares at 100c before slipping back to 105c. Greenwich, which placed shares at 200c, hit 390c before retreating to 250c. Edgars shed 17% to R17, closing at R17.50 as strike action exacerbated sector weakness: Edgars was R122 a year ago and R170 in 1996. The credit-retailing clothing sector of the market is down by three quarters this year alone. Analysts say Edgars is probably a buy now, but there is lower risk elsewhere. AECI bombed out after the Competition Board effectively put the kibosh on Sasol's takeover at R30 a share. AECI gave up 66% to R10.50 and Sasol shed 110c to R24. Polifin, in which both have stakes, added 140c to 590c.
Company results saw 14 profit increases, nine decreases and 14 lossmakers, including food companies Choice and Namsea, publisher Perskor, medical companies Medhold and Medex and importer Daewoo. Good results came from SA Druggists, Outsourcing, Altech and Fintech, Paramed (under cautionary), FirstRand and Advtech. Parliament passed legislation to dematerialise securities and replace share certificates with electronic entries, providing the legal framework for the JSE's STRATE (Share Transactions Totally Electronic) settlement system. Thinly traded companies will be the first to dematerialise early next year; share certificate surrender will be voluntary unless the shares are traded or transferred, in which case they will be dematerialised and registered electronically.
Julie Walker Top of page
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