/ 7 February 2005

JSE starts up on Wall Street, rand

The JSE Securities Exchange started the week on a firm note following a strong close on Wall Street and the softer rand. Resources and platinum counters were among the early features.

The bourse was expected to look to the rand, which early on Monday morning weakened to 6,19 — its worst level this year.

By 9.15am, the all share index was up 0,50%, while the all share industrial index advanced 0,33%. Resources jumped 0,79%, while gold miners were up 0,59% and platinum miners collected 0,92%. The financial and banks indices were 0,35% and 0,36% better respectively.

The rand was quoted at 6,19 per dollar from 6,13 when the JSE closed on Friday, while gold was quoted at $414,10 a troy ounce from $415,70/oz at the JSE’s last close.

“It has been a quiet start and there has been no major company announcements this morning. We are just waiting for London to open,” said an equities trader.

The trader added that the firmer start was mainly due to the firm strong close on Wall Street on Friday, firmer Asian markets and the softer rand.

Among the early features, Anglo added R1,50, or 1,02%, to R149, while BHP Billiton was up 35 cents to R77,50.

Among gold counters, Gold Fields jumped 1,40% or 95 cents to R68,85, while Randgold was up 45 cents, or 3,75%, to R12,45.

Among platinum miners, Angloplat was 389 cents, or 1,72% higher at R229,99, while Impala improved 300 cents to R540.

Among industrials, SABMiller was up 28 cents to R92,80, while Sappi was 120 cents, or 1,62% better, at R75,20 and Sasol advanced 155 cents, or 1,19%, to R131,30.

Among banking and financial stocks, Old Mutual was up 13 cents to R14,85, while Absa was 35 cents better at R74,25.

AFX reports that US stocks closed a second week of gains on Friday, enjoying a strong rally as Wall Street bet that January’s weaker-than-expected employment report could mean a quicker end to the latest cycle of interest-rate hikes.

A favourable court ruling for tobacco stocks sent Altria Group shares sharply higher in late trade, propelling the Dow Jones Industrial Average to its highest level in a month.

The Dow finished up 123 points, or 1,2%, to 10 716, its highest level since January 4. The benchmark index gained 2,8% for the week. The last day on which the Dow closed up more than 100 points was December 1, when it rallied 162,20 points.

The Nasdaq Composite Index added 29 points, or 1,4%, to 2 086, to close out the week with a 2,5% gain.

The S&P 500 Index rose 13 points, or 1,1 percent, to finish at its highest level of this year. The index gained 2,7% on the week.

Meanwhile in Tokyo, share prices closed firmer, led by high-techs, in response to gains by US chip-related companies on Friday, dealers said.

The blue-chip Nikkei 225 Stock Index closed up 139,46 points or 1,2% at 11 499,86. – I-Net Bridge