The JSE Securities Exchange South Africa (JSE) ticked up at the opening on Monday after world market sentiment was boosted by news of Iraqi dictator Saddam Hussein’s capture. Gains were pared by gold stocks, which were under pressure on the back of a softer bullion price and a slightly stronger rand.
At 9.12am, the all-share and all-share industrial indices were 0,29% and 0,3% stronger respectively. Financials firmed 0,4%, and the banks index was 0,92% better. Resources inched up 0,13% and the platinum mining index climbed 0,29%, while the gold mining index surrendered 1,96%.
The rand was trading at R6,38 per dollar from R6,40 when the JSE closed on Friday, while gold was quoted at $405,65 an ounce from $407,80/oz at the JSE’s last close.
“The S&P [Standard & Poor] is very strong. The Americans will push anything up on good news,” a dealer commented.
She continued that the opening on the JSE had been “no great shakes”, however, with many players waiting for London to open to see what happened there.
“It is very quiet. I think a lot of people have taken today off,” the dealer said.
In addition to the market being closed on Tuesday for the Day of Reconciliation public holiday, many players have already gone away for the summer holiday season.
Shares to gain in early trade included London-listed diversified resources group Anglo American, which added 1,15% or R1,50 to R131,50.
Swiss-listed luxury goods group Richemont rallied 1,09% or 17 cents to R15,70, while Standard Bank surged 2,95% or R1,10 to R38,40.
AngloGold plunged 3,97% or R12 to R290, although only 1 166 shares had traded. Gold Fields (GFI) gave up 2,02% or R1,71 to R83.
It was announced before the opening that the Ghanaian government had finalised the terms of the deal whereby AngloGold will merge with Ashanti Goldfields.
Dow Jones Newswires reports that the Dow Jones Industrial Average ended on Friday above 10 000 for a second straight session, aided by United Technologies, while the Nasdaq Composite Index also advanced despite a disappointing report on consumer sentiment.
The Dow Jones industrial average closed just above 10 000 on Thursday, a milestone last seen 18 months ago.
All told, the major stock gauges rose for the session, and the Dow and the Standard & Poor’s 500 marked their third consecutive week of gains.
The Dow rose 34, or 0,3%, to 10 042,16, setting a fresh 18-month high. For the week, the blue-chip stocks rose 179,48, or 1,8%.
The Nasdaq Composite Index advanced 6,68, or 0,3%, to 1 949, part of a weekly gain of 11,18, or 0,6%.
The Standard & Poor’s 500 Index gained 2,93, or 0,3%, to 1 074,14, a new 18-month high. The index rose 12,64, or 1,2%, for the week.
In Tokyo on Monday the Nikkei ended at a five-week high of 10 490,77, up 321,11 points or 3,2%, on hopes that the capture of Saddam will bolster Wall Street and further benefit global stock markets in the near term. The Nikkei’s rise was its second largest for this year in terms of points. — I-Net Bridge