/ 4 January 2008

JSE extends gains on miners, world markets

South African stocks extended gains at midday on Friday, bolstered by strong gains among miners amid rampant commodity prices, while a healthy start in European markets added to the upbeat sentiment.

But volumes remained thin as some players remained on the sidelines ahead of the United States December non-farms payrolls data due out later in the day, while other players were still on festive-season break.

By noon, the JSE’s all-share index was 1,60%, or 467 points, higher at 29 591,750 after opening about 280 points firmer, thanks to a 3,31% gain in resources. The gold- and platinum-mining indices added 2,99% and 1,58% respectively. Industrials gained 0,43%, financials lost 0,05% and banks gave up 0,19%.

The rand was bid at 6,84 to the US dollar, unchanged from when the JSE closed on Thursday, while gold was quoted at $859,60 a troy ounce from $858,02/oz at the JSE’s last close.

A cocktail of higher Wall Street futures, higher European markets and sustained strength in commodity prices underpinned the market’s strong performance, traders said.

“It’s hard to tell if the stocks would hold up because forecasts for non-payroll data are not encouraging. It’s a wait-and-see situation,” one trader said.

Boosted by the commodity prices rally, diversified miner BHP Billiton surged 5,67%, or R11,88, to R221,38 and Anglo American added 2,95%, or R12,25, to R427.

AngloGold Ashanti was up 1,08%, or R3,45, at R321,97, Gold Fields climbed 4,69%, or R5,10, to R113,90 and Harmony soared 4,58%, or R3,50, to R80.

Among platinum counters, Anglo Platinum gained 1,34%, or R14, to R1 058 and Impala Platinum added 1,44%, or R3,58, to R252,68.

Petrochemicals group Sasol collected 1,30%, or R4,60, to R359,60.

On the industrial front, sugar maker Illovo was up 2,40%, or 55 cents, to R23,50 and brewer SABMiller strengthened 90 cents to R192,64.

Among banks, Nedbank slipped 2%, or R2,70, to R132,30 and Standard Bank dipped 25 cents to R99,25. — I-Net Bridge