The JSE Securities Exchange South Africa (JSE) enjoyed a strong opening for the second straight day after being mauled on Monday and Tuesday and the last four days of last week. A weaker rand and strong close on the Dow overnight gave the bourse the impetus it needed to post further gains.
By 0913, the all share index was up 1,27%. The all share industrial and financial indices were 0,72% and 1,12% firmer respectively. Resources climbed 1,72%, with the gold mining index gaining 1,88% and the platinum mining index 2,14%. The IT index was up 0,96%.
The rand was trading at 8,1500 to the dollar from 8,1180 when the JSE closed on
Thursday, while gold was quoted at $333,10 an ounce, down $2 from the bourse’s
last close.
“We’ve had another good start with the Dow up and the rand weaker,” a dealer said.
She said that the weaker rand had sparked demand for resources stocks. Early trade was also a bit more active than it has been recently, she added.
Leading the upside of the market was London-listed diversified resources group Anglo American (AGL), which gained 2,21% or R2,60 to R120. BHP Billiton (BIL) was 1,25% or 50 cents better at R40,50 and synthetic fuels group Sasol (SOL) was 2,17% or R1,86 stronger at R87,75. AngloPlat (AMS) dominated early activity on the platinum mining index, advancing 1,25% or 50 cents to R300. The lower bullion price did little to suppress appetite for gold stocks, with Gold Fields (GFI) gaining 3,64% or R2,95 to R84. Harmony (HAR) was up 2,16% or R2,07 to R98.
The dealer noted that gold stocks had been severely hard hit earlier in the week when both Gold Fields and Harmony hit one-year lows. Gold ADRs were also up in the US overnight, despite the weaker bullion price. On the industrial index, Swiss-listed luxury goods group Richemont (RCH) was up 1,97% or 24 cents to R12,40.
Pulp and paper producer Sappi (SAP) surged 1,86% or R1,85 to R101,50, while steel producer Iscor (ISC) was 4,29% or 70 cents stronger at R17.
Early gainers among financials included London-listed Old Mutual (OML), which accumulated 2,41% or 24 cents to R10,19. Sanlam (SLM), which lost ground on Thursday, bounced 2,44% or 15 cents to R6,30, while Standard Bank (SBK) was 2,48% or 69 cents stronger at R28,50.
The Wall Street Journal reports that in New York, the stock market’s relentless punishment ended on Thursday — at least for a day. Stocks soared in their biggest gains in five months amid hopes that a war in Iraq could be delayed, or even avoided. Beaten-down technology and insurance stocks led the surge, which was accompanied by a drop in oil prices and fleeting signs that there might be life coming back to the economy.
The Dow Jones Industrial Average climbed 269,68 points, or 3,57%, to 7821,75 —
the biggest rally in point and percentage terms since October 15. The Nasdaq Composite Index jumped even higher: 4,81%, or 61,53, to 1340,77, to put the battered index back in positive territory for the year. The Standard & Poor’s 500-stock index rose 3,45%, or 27,71 points, to 831,90. But some were confounded by the sudden climb. The sharp gains — and the year’s heaviest trading volumes that accompanied them — came with as much bad news as good. Indeed, the very nature of the abrupt rise suggested to some that the rally might be fleeting, unless there is a resolution on Iraq soon. – I-Net-Bridge