The JSE Securities Exchange South Africa (JSE) opened firmer on Thursday on the back of a weaker rand. The market remained quiet, however, with many players choosing to take to the sidelines until uncertainties over Iraq are resolved.
At 0921, the all share and all share industrial indices were up 0,96% and 0,70% respectively. The financial index was 0,26% firmer. Resources rallied 1,51% in early trade, while the gold mining index gained 1,70%. The IT index was up 0,31% and the platinum index was flat.
The rand was trading at 8,1076 to the dollar from 7,9517 when the JSE closed on
Wednesday, while gold was quoted at $354,88 an ounce, about $3 from the JSE’s
last close. “The weaker rand and firmer gold price have helped the JSE open firmer,” a dealer said.
She added that while the weaker Dow overnight was likely to cap gains on some of the industrial counters, most of the early activity was in the resources sector. The dealer said the market was quiet, with players staying out of the market on war fears.
Shares to gain in early trade included London-listed diversified resources group Anglo American (AGL), which added 1,84% or R2.05 to 113,75 rand. BHP Billiton (BIL) was up 1,54% or 63 cents to R41,50. Synthetic fuels group Sasol (SOL) was 2,02% or R1,80 stronger at R91.
On the gold mining index, Harmony (HAR) surged 2,71% or R3,11 to R118, Gold Fields (GFI) gained 1,99% or R1,95 to R100 and AngloGold (ANG) was 1,34% or R3,40 stronger at R257,50.
On the industrial index, Swiss-listed luxury goods group Richemont (RCH) was up 1,20% or 15 cents at R12,65 and London-listed beverages group SABMiller (SAB)
was 1,73% or 85 cents stronger at R50. Pulp and paper producer Sappi (SAP)
climbed 1,82% or two rand to R112.
Banking group Nedcor (NED) led the upside of the financial index, climbing 2,06% or two rand to R99, while Liberty International (LBT) bounced 69 cents to R71,20.
The Wall Street Journal reports that with US stocks already weighed down by disappointing sales at Hewlett-Packard and by general war worries, investors learned late in the day that Turkey was closing its border with Iraq in apparent preparation for war.
The Dow Jones Industrial Average, which includes H-P and which had rebounded 51 points on Tuesday amid some hopes that war might be avoided, finished down 102,52 points, or 1,30%, at 7,806.98.
The broad Standard & Poor’s 500-stock index was off 1,31%, or 11,02 points, to 827,55. The Nasdaq Composite Index declined 1,90%, or 25,30 points, to 1,303.68. – I-Net-Bridge