Bloomberg News

South African Stocks: Anglo, BHP Billiton, Harmony, Jubilee

October 13, 2011

Oct. 13 (Bloomberg) -- The FTSE/JSE Africa All Share Index declined 295.56, or 1 percent, to 30,834.39 by the 5 p.m. close in Johannesburg, reducing the week’s gains to 2 percent.

The following were among the most active stocks in the South African market today.

Anglo American Plc (AGL SJ), the mining company that makes up more than 9 percent of the benchmark stock index, fell for a third day, slipping 6.90 rand, or 2.3 percent, to 287.65 rand. Copper futures fell the most in two weeks on concern that Europe’s sovereign-debt crisis will hamper the economy in China, the world’s top consumer of the metal. Separately, plans by Codelco, the world’s biggest copper company, to exercise an option to buy a 49 percent stake in Anglo American Plc’s Chile unit will hamper Anglo’s growth outlook, Liberum Capital Ltd. said.

BHP Billiton Ltd. (BIL SJ), the world’s largest mining group, dropped 5.70 rand, or 2.4 percent, to 235.30 rand. Coking-coal miners at the company’s operations in Australia rejected a second offer by the company for a new contract and are planning more strikes, extending a four-month dispute over benefits and job security.

Central Rand Gold Ltd. (CRD SJ), a South African producer of the metal, closed at its highest in more than two weeks, gaining 1 cent, or 20 percent, to 6 cents. Ferreira Estate and Investment Co., the registered holder of Central Rand Gold Ltd.’s mining right, started urgent motion proceedings in a South African High Court to set aside the mines minister’s decision to cancel the mining right.

Harmony Gold Mining Co. (HAR SJ), the continent’s third- largest gold company, declined for the first time in four days, sliding 1.90 rand, or 2 percent, to 95.45 rand. Gold fell for the second time this week in New York as gains in the dollar curbed demand for the precious metal as an alternative asset.

DRDGold Ltd. (DRD SJ), South Africa’s fourth-biggest producer of the metal, slid 5 cents, or 1.2 percent, to 4.30 rand. Separately, the company’s Blyvoor mine reached a wage agreement with the National Union of Mineworkers that will see pay increase by between 6 percent and 7 percent, the union said in an e-mailed statement today.

Jubilee Platinum Plc (JBL SJ) fell 6 cents, or 3.7 percent, to 1.58 rand. The platinum miner with operations in five countries including South Africa raised 4.4 million pounds ($6.9 million) through the placement of new shares.

--Editors: Linda Shen, Alex Nicholson

To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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