The JSE Securities Exchange South Africa (JSE) opened in positive territory on Wednesday, buoyed by stronger world markets. Gold stocks, however, tarnished the bourse’s overall performance after bullion lost ground.
At 0912, the all share index was up 0.38%. Financials and resources were 0,73% and 0,54% firmer respectively. The platinum mining index was 1,12% stronger, while the banks index was 1,31% in the black.
The rand was trading at 7,8590 to the dollar from 7,8650 when the JSE closed on Thursday, while gold was quoted at $331,62 an ounce from $335/oz at the JSE’s last close.
“The JSE is just following world markets. The Dow was up last night, all the European markets have opened up and US futures are also looking good,” a dealer said.
He added that while the JSE was up on Wednesday, it had been down for seven days prior to that and people were looking to pick up oversold stocks. However, the dealer cautioned that it was far too soon to call the end to the bear market and said that stocks’ fortunes were largely dependent on events in Iraq.
Shares to advance in early trade included London-listed diversified resources group BHP Billiton (BIL), which was 1,24% or 50 cents better at R40.70. Anglo American (AGL) added 75 cents to R115, while synthetic fuels group Sasol (SOL) was 1,36% or R1,22 stronger at R91,20.
Mining house Kumba (KMB) bounced 3,08%or 80 cents to R26,75. The share was up by a similar amount on Tuesday after being hammered last month.
Financials also got off to a strong start with London-listed Old Mutual (OML) up 1% or 10 cents at R10,10.
Standard Bank (SBK) surged 1,94% or 53 cents to R27,85, FirstRand (FSR) firmed 1,52% or 10 cents to R6,70, while Nedcor (NED) notched up 1,08% or 95 cents to R89,15 rand.
On the downside of the market, Gold Fields (GFI) gave up 1.42% or R1,19 to R82,40. Harmony (HAR) was 3,13% or three rand softer at R92,80, while AngloGold (ANG) was 1,73% or R4,04 weaker at R228,95.
In addition to the softer bullion price, gold ADRs came off in the US last night. They tend to move inversely to the broader market, just as the gold price tends to move in opposite direction to the dollar.
The Wall Street Journal reports that after four days of losses, US stocks began the new quarter with a gain, amid a glimmer of hope that the battle for Baghdad, and the end of the war, may be coming into view.
The war hopes were modest at best, as were the stock gains. Following its 530-point decline over the prior six trading days, the Dow Jones Industrial Average rose 77,73 points, or 0,97%, to 8069,86 — still down 3.3% since the year began. Skeptics warn that the rebound could be temporary.
The Nasdaq Composite Index, dominated by big tech stocks, rose only 0,53%, or 7,13 points, to 1348,30, although it still is up 1% so far this year. The broader Standard & Poor’s 500-stock index rose 1,21%, or 10,30 points, to 858,48, down 2,4% since the year began. – I-Net-Bridge