/ 28 September 2006

JSE stays in the black

The JSE remained in the black at midday on Thursday, with gold and resources stocks giving the bourse support as the bullion price moved back above the $600 an ounce level overnight.

Traders noted good demand for retail stocks earlier in the session, but prices for these stocks have come off a shade after worse than expected producer inflation (PPI) figures, released at 11.30am.

South Africa’s PPI rose by 9,2% year-on-year (y/y) in August from an 8,1% y/y increase in July, Statistics South Africa said on Thursday.

The PPI rose 1,5% on a monthly basis after July’s monthly rise of 1,7%.

PPI was expected to have risen to 8,4% y/y in August, a survey of 12 economists by I-Net Bridge found, with forecasts ranging from 7,9% y/y to 9,1% y/y, with only one economist expecting it to be below July’s level.

By 11.55am, the all share index was up 0,15%, with the resources index 0,81% better and the gold mining index 0,54% to the good. However, the platinum mining index gave up 1,08%. Industrials were off 0,41%, while the banking index added 0,30% and the financial index shed 0,23%.

The rand was bid at 7,6153 per dollar from 7,63 when the JSE closed on Wednesday, while gold was quoted at $604,65 a troy ounce from $593/oz at the JSE’s last close.

The firmer precious metals prices are lending support, but apart from that there are no real features this morning,” said a local equities trader.

Among resources stocks, Anglo American was up 1,42% or R4,49 at R321,50, while BHP Billiton gained R1,22 to R132,95.

Among gold counters, AngloGold Ashanti was up 50 cents to R296, while Gold Fields collected 52 cents to R141,50 and Harmony jumped 150 cents to R102,60.

Petrochemicals group Sasol added 1,15%, or R2,84, to R248,89.

Among industrials, global brewing giant SABMiller was down 1,69%, or R2,50, to R145,20, while Barloworld shed R1,50 to R129.

Luxury goods group Richemont shed 1,05%, or 39 cents, to R36,60.

However, Imperial notched up 80 cents to R127,80 and AECI collected 50 cents to R58,50.

Among banks, Standard Bank added 111 cents to R76,50, but Nedbank shed R1 to R114.

London listed Old Mutual was 27 cents weaker at R23,67 and Sanlam was up seven cents to R17,02.

Among retailers, Foschini was unchanged at R45,90, after earlier touching R46,37, while Edcon was up 64 cents to R30,15, but off an earlier high of R30,50.

Woolies was down one cent to R13,77, after earlier trading at R13,90, while Truworths was up 18 cents to R23,70, after touching a high earlier of R23,86. – I-Net Bridge