/ 28 December 2006

JSE off highs, hovers around 25 000

The JSE continued its upward momentum on Thursday, and although it was off its morning high of 25 075,99, it remained around the 25 000 level. This was the first time ever that the all share index had moved above the 25 000 level. Volumes remained thin, as is characteristic for the period between Christmas and new year, with most players only expected back next week or the week after.

By noon, the all share index was up 0,26%, aided by a 0,77% increase in resources, a 1,3% rise in golds and a 1,28% jump in platinums. However, industrials were off 0,13%, while financials were flat and banks edged down 0,41%.

The rand was bid at 7,00 per dollar — unchanged from when the JSE closed on Wednesday — while gold was quoted at $627,85 a troy ounce from $628,45 at the JSE’s last close.

The JSE’s gains were spurred by the Dow reaching a record high — above the 12 500 level for the first time — and the weaker rand earlier.

However the local unit recovered off its weakest levels during the morning after having been bid as high as 7,0850 at one stage. The firmer currency in late morning accounted for the slight pull-back on the JSE, a trader said.

Another trader earlier said that he thought the JSE would close above 25 000 for 2006, but questioned whether the strength would be sustained into the new year.

“With the unit trust close out tomorrow, the guys will probably keep it above 25 000, but early next year I wouldn’t be surprised if we see some profit

taking,” the trader said.

London-listed resources giant Anglo American was up R2,44 at R342, while BHP Billiton added R1 to R128,75.

Synthetics fuels producer Sasol was down 38 cents at R258,60 after earlier having traded as high as R260,50.

Among gold counters, Gold Fields added R1,55 to R133,05, while Harmony collected R2, or 1,82%, to R112 and AngloGold Ashanti firmed R3,90, or 1,18%, to R334.

Impala Platinum advanced R3,60, or 1,96%, to R187,50 and Anglo Platinum was up R4,50 to R864,50. Barplats was up 30 cents, or 4,29%, to R7,30, after earlier trading as high as R7,90.

On the industrial front, London-listed brewer SABMiller edged up four cents to R162, off its earlier fresh record high of R165, and Tiger Brands was 50 cents better at R172. Barloworld collected 95 cents to R164,45 and PPC added 20 cents to R402.

However, luxury goods group Richemont was 22 cents softer at R40,60.

Mobile network provider MTN Group shed R1,05 to R85,90, but Telkom was 60 cents higher at R143.

Among retailers, Foschini advanced 45 cents to R58,45, Truworths was 35 cents firmer at R32,35, but Edcon shed 14 cents to R39,80.

Among banks, Nedbank was off 25 cents to R135, Absa shed 15 cents to R126 and Firstrand dipped 19 cents to R22,35.

Old Mutual was up 10 cents to R24,08.

AFX reports Wall Street surged higher on Wednesday, hurtling the Dow Jones industrials past 12 500 for the first time as year-end bargain hunters picked up stocks across a variety of sectors.

The Dow rose 102,94, or 0,83%, to a closing record of 12 510,57. The index hit a record trading level of 12 519,22 earlier in the session.

Broader stock indicators also advanced. The Standard & Poor’s 500 index was

up 9,94, or 0,70%, at 1 426,84, and the Nasdaq composite index rose 17,71, or 0,73%, to 2 431,22.

The two-day advance leaves major indexes heading toward double-digit gains for the year. The Dow is now up 16,7% this year, while the Nasdaq has risen 10,2% and the S&P 500 is up 14,3%. – I-Net Bridge