/ 12 January 2007

World markets give JSE a boost

The JSE was roaring ahead in noon trade on Friday fuelled by stronger world markets. Gains were widespread and advancers outnumbered decliners on the all share index by four to one. By 11.57am, the all share index added 1,05%. Industrials and financials firmed 0,99% and 0,73% respectively, while the banks index was 0,25% better.

Resources rallied 1,28% and the platinum mining index jumped 2,41%, while the

gold mining inched 0,09% higher.

The rand was bid at 7,28 per dollar from 7,24 when the JSE closed on Thursday, while gold was quoted at $613,45 a troy ounce from $612,95/oz at the JSE’s last close.

“We’ve got very strong world markets and we are taking our cue from that,” a dealer said. “The rand is slightly weaker than it was when we closed yesterday [Thursday], while most of the commodity prices are flat.”

She said that sentiment about the outlook for the local economy was positive and the majority of sectors on the market were much better.

Leading the JSE’s upside, BHP Billiton was 1,87% or R2,40 stronger at R131. Anglo American added 1,08% or R3,69 to R344,70. Both were down in the UK.

Petrochemicals group Sasol climbed R1,20 to R231,20. AngloPlat surged 3,14% or R25,50 to R837 and Impala leaped 2,41% or R4,25 to R180,25. The dealer said that AngloPlat had been upgraded to “buy” from “hold” by Deutsche Securities.

AngloGold Ashanti advanced R2,60 to R327, but Gold Fields fell 94 cents to R123,11.

Coal and industrial minerals group Exxaro rose 1,45% or 75 cents to R52,50, but Kumba Iron Ore weakened 85 cents to R109.

The dealer said that Deutsche had initiated coverage on Exxaro at “buy” and on Kumba at “hold”.

Among industrials, London-listed brewer SABMiller was up 2,43% or R3,95 at R166,35 after trading at a record high of R166,89.

Swiss-listed luxury goods group Richemont rallied 1,35% or 55 cents to R41,35.

Hospital group Netcare jumped 2,13% or 29 cents to R13,89.

Retailer Mr Price continued to benefit from a positive trading statement on Wednesday, picking up 1,3% or 35 cents to R27,25. It earlier traded at a new high of R28,54.

Cellular network operator MTN Group gained 80 cents to R83,10 and media group Naspers notched up 84 cents to R161,29.

Telkom, however, slipped 75 cents to R146.

London-listed financial services group Old Mutual forged ahead 1,7% or 42 cents to R25,15. Sanlam climbed 1,49% or 29 cents to R19,79.

Standard Bank dipped 10 cents to R96,90, but FirstRand inched up three cents to R22,68.

Absa added R1 to R125 and Nedbank was 55 cents in the black at R132,50. – I-Net Bridge