/ 23 November 2007

World markets boost a recovering JSE

World markets injected some life into the JSE at midday on Friday as the all-share index lifted 0,90%, led by a 1,78% gain in resources.

By noon the gold mining index collected 0,35%, but the platinum mining index was up a slight 0,06%. Financials advanced 0,51% and banks inched up 0,28%. Industrials were 0,09% in the black.

The rand was bid at 6,80 to the US dollar from 6,77 when the JSE closed on Thursday, while gold was quoted at $809,95 a troy ounce from $803,35/oz at the JSE’s last close.

“We are seeing a bit of a rebound on the JSE. It has been very oversold,” said a local equities trader.

He added that US futures were pointing up, which was very encouraging.

“We are looking for a slightly strong open in the US and European markets have been slightly stronger this morning,” he added.

He said that in addition, a lot of stocks have been “bashed” down on the JSE, and now they are seeing a bit of a recovery.

Earlier, traders said they expected a muted session as most investors in the United States were still on a long-weekend break after celebrating Thanksgiving on Thursday.

Wall Street is expecting to open for a half day of trade today, and in Asia, the Nikkei is closed, as Japanese market players were taking the day off to celebrate a public holiday.

Among resource stocks on the JSE, BHP Billiton climbed R4,61, or 2,2%, to R214,11 and Anglo American shot up R16,50, or 4,15%, to R414.

Among platinum stocks, Anglo Platinum added R4,89 to R939,89, but Impala Platinum shed R1,11 to R222,88.

Gold miner AngloGold Ashanti eased 49 cents to R302,50, but Goldfields was up 55 cents to R115,55 and Harmony increased R1,01, or 1,47%, to R69,81.

Diversified industrial group Barloworld is pushing ahead with its plans to unbundled its coatings unit into a separately listed company, Freeworld Coatings, in early December. Barloworld’s share price was off 30 cents to R119,20, while brewer SABMiller lost 50 cents to R181.

In the media sector, Johncom pulled back 74 cents to R100,25. Johncom on Friday had its shares trade under its Johncom name for the last time, after shareholders gave the green light for its name change to Avusa, which would become effective on Monday.

Elsewhere, banking group Standard Bank climbed 75 cents to R109,25. On Friday it held an investor presentation on the benefits derived from its strategic partnership with the Industrial and Commercial Bank of China (ICBC), expanding on the rationale of the R36,7-billion deal that will see ICBC acquire a 20% stake in the bank.

Absa perked up 35 cents to R128,35. – I-Net Bridge