/ 13 September 2006

JSE continues Tuesday’s recovery

The JSE continued its recovery on Wednesday supported by firmer world markets. But lower commodity prices took a chunk from the JSE’s gains.

By 11.52am, the all share and all share industrial indices climbed 0,36% and 0,3% respectively. Financials firmed 1,32% and the banks index was bolstered 1,67%.

Resources, however, eased 0,12%, knocked by a 2,84% tumble in the gold mining index and a 2,11% slide in the platinum mining index.

The rand was bid at 7,33 per dollar from 7,32 when the JSE closed on Tuesday, while gold was quoted at $582,45 a troy ounce from $592,40/oz at the JSE’s last close.

“The market was down for five days and had a big bounce yesterday [Tuesday]. It is a bit better today, but there is nothing to read into it. It had to bounce after the big pounding it took,” a dealer commented.

He added that the lower oil price was lifting sentiment on world markets, which in turn were supporting the JSE.

However, with other commodities following oil lower, it was proving to be a double-edged sword for the market.

Leading the JSE’s upside, London-listed diversified resources group Anglo American added 1,29% or R3,80 to R297,50. BHP Billiton was 82 cents better at R129.

Banking group FirstRand forged ahead 2,45% or 42 cents to R17,54 and its major shareholder RMB Holdings rallied 3,04% or 80 cents to R27,15. Standard Bank strengthened 1,12% or 85 cents to R76,85, Absa advanced 2,19% or R2,11 to R98,61 and Nedbank notched up 45 cents to R107,60.

Life insurer Sanlam leaped 2,16% or 34 cents to R16,10 and Liberty Group jumped 1,8% or R1,28 to R72,28. London-listed Old Mutual firmed 1,41% to R23,05.

Among industrials, cellular network operator MTN Group rang up 1,07% or 61

cents to 57.61 rand. Telkom (TKG) gained 99 cents to R132,99.

Media group Naspers rebounded 1,15% or R1,40 to R122,80.

Furniture group Steinhoff was 1,99% or 48 cents stronger at R24,60 after touching a record high of R24,79.

While Swiss-listed luxury goods group Richemont rose 22 cents to R34,55, London-listed brewer SABMiller surrendered R1,19 to R141,80.

Consumer brands group AVI was off 14 cents at R15,80, while pulp and paper producer Sappi shed 85 cents to R94,65.

Gold miner Gold Fields slumped 3,9% or R5,11 to R125,89, Harmony dropped 2,45% or R2,23 to R88,76 and AngloGold Ashanti gave up 1,79% or R5,30 to R291,50.

Western Areas plunged 4,35% or R2 to R44.

Impala Platinum slid 3,15% or R40 to R1 228 and AngloPlat was R5,99 softer at R708,01.

Coal and iron ore miner Kumba slipped 2,11% or R2,90 to R134,50. Petrochemicals group Sasol dipped 60 cents to R236. – I-Net Bridge