/ 9 October 2007

JSE edges up as miners recover losses

The JSE had edged up slightly by midday on Tuesday as platinum- and gold-mining stocks started to recover earlier losses.

By 12pm, the all-share index was 0,08% in the black as the platinum-mining index gained 1,31%, resources lifted 0,72% and the gold-mining index recovered 0,13%. However, banks and financials were off 0,88% and 0,60% respectively and industrials were 0,24% lower.

The rand was bid at 6,87 to the United States dollar, from 6,84 when the JSE closed on Monday, while gold was quoted at $728,03 a troy ounce from $733,75/oz at the JSE’s last close.

“Commodity prices have been under pressure and investors have sold off stocks, but now some buying interest has come back into the market, resulting in a slight bounce for the JSE,” said a local equities trader.

He added that buying interest has come back into Anglo American and BHP Billiton, but there was profit-taking amongst bank stocks.

“The dollar has strengthened, having a negative effect on commodities, but after yesterday’s [Monday] sell-off in commodity stocks — which was quite a strong sell-off — buying interest has come back,” he added.

At midday on the JSE, resources group BHP Billiton rose R2,02 to R241,75 and Anglo American added R2,80 to R458,80, while Sasol was R1 higher at R319.

Kumba Iron Ore collected 500 cents, or 2,2%, to R231,50.

Anglo Platinum recovered R3,05 to R1 123,05, while Impala Platinum advanced R6,50, or 2,67%, to R249,50, but Lonmin fell R7,15, or 1,44%, to R488.

Gold miner AngloGold Ashanti shed 21 cents to R302,99, but Goldfields collected R1,19 to R122,49.

Mittal Steel dipped 75 cents to R147,25.

In the industrial sector, Mondi firmed 2,06%, or R1,31, to R65 and Mondi added 3,57%, or R2,12, to R61,50.

Technology stock Altron was unchanged from Monday’s close at R51,50. It earlier reported a 39% rise in diluted headline earnings per share to 152 cents for the six months ended August from 110 cents a year ago. Revenue was 32% higher at R11,04-billion, while operating profit was 27% better at R902-million.

Fixed-line operator Telkom edged up 95 cents to R178 but mobile network operator MTN Group eased 15 cents to R116,50.

Banking group FirstRand was off 1,56%, or 38 cents, to R24 and Nedbank was 1,14%, or R1,52 lower, at R132,20. — I-Net Bridge