/ 21 June 2007

JSE higher on futures close-out

The JSE was higher at noon on Thursday, shrugging off a negative tone on overseas markets as investors piled in ahead of a futures close-out later in the day.

However, traders said the local bourse was expected to follow overseas markets weaker after the close-out, which started at 12pm.

At 12pm, the all-share index was up 0,54%. Resources gained 0,39%, the gold- and platinum-mining indices firmed 0,96% and 0,91% respectively. Industrials added 0,63%, financials picked up 0,54% and banks climbed 1,22%.

The rand was bid at 7,13 to the United States dollar from 7,08 when the JSE closed on Wednesday, while gold was quoted at $654,25 a troy ounce from $656,55 at the JSE’s last close.

“The rand is providing a little bit of underlying support, but the uptrend is really on the back of futures close-out,” said Makwe Masilela, an equity trader at BP Bernstein.

He added that the local bourse was expected to follow in the footsteps of weaker overseas markets after the close-out.

Banks were among the blue chips’ top gainers with Absa climbing 2,03%, or R2,80, to R140,80. Standard Bank was up 1,08%, or R1,15, to R107,20, Nedbank strengthened 1,77%, or R2,50, to R143,50 and FirstRand added 1,02%, or 24 cents, to R23,74.

On the resource index, Anglo American was up 48 cents to R440,48 and BHP Billiton was R1,15 better at R197,40.

Among gold counters, AngloGold Ashanti was up 79 cents to R287,40, Gold fields gained 1,50%, or R1,75, to R118,75 and Harmony improved 1,44%, or R1,50, to R105,50.

Elsewhere, media group Johncom was flat at R103. It earlier reported diluted headline earnings per share of 658 cents for the year ended March from 486 cents a year earlier. Headline earnings per share were up 36% to 659 cents.

Industrial brands management group Barloworld picked up 1,68%, or R3,30, to R199,50, investment group Remgro added 1,72%, or R3,25, to R192 and brewer SABMiller was up 1,66%, or R3,02, to R184,99. — I-Net Bridge