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14 Mar 2008 10:41
The resources index kept the JSE in firmer territory by midday on Friday, enhancing the morning session’s gains.
At noon, the JSE’s broader all-share index was up 1%, driven by the 1,75% advance in the resources index.
The gold mining index recovered 0,06% but the platinum mining index gave up 0,23%.
The rand was bid at 7,92 to the US dollar from 7,95 when the JSE closed on Thursday, while gold was quoted at $998,30 a troy ounce from $996,78 at the JSE’s last close. Before the JSE closed on Thursday, gold hit a record $1 000,45/oz.
“The JSE is quite firm. There was a big turnaround in the Dow last night, the rand is at weak levels and the gold price is strong. Resources are going strong and industrials look steady after they were knocked yesterday,” one Johannesburg-based trader said.
Dow Jones Newswires reported that Standard & Poor’s have predicted that financial companies are nearing the end of the massive asset write-downs that have devastated the stock and credit markets.
Wall Street recovered from its 235-point plunge to close higher, it said. Overnight, Wall Street’s DJIA edged up 0,29%, the Nasdaq advanced 0,88% and the S&P500 was up 0,51%.
Looking at the gold price, the local trader added that the yellow metal would probably find resistance at $1 000/oz. “It might shoot above $1 000 today, but it will come straight back to these levels. I think that by year-end, gold will be at twelve hundred dollars an ounce,” he added.
However, the JSE’s gold mining stocks lost their steam after yesterday’s rally, driven by the record gold price. Gold miner AngloGold Ashanti was up R1,99 to R274, but Gold Fields shed 87 cents to R130 and Harmony eased 60 cents to R111,74.
Among resources, Anglo American lifted R11,96, or 2,39%, to R511,60, BHP Billiton advanced R8,17, or 3,36%, to R251 and Sasol gained R3,25 to R418,75.
Exxaro was trading just over R1 short of its new all-time high hit earlier on Friday of R131. At noon, its share price was up R1,96, or 1,54%, to R129,46.
Platinum producer Anglo Platinum gave up R8,40 to R1 229,35 and Impala Platinum pulled back 70 cents to R323,52.
Building and construction group Murray & Roberts was unchanged at R91, while Aveng firmed R1,59, or 2,93%, to R55,89.
Diversified industrial group Barloworld added R1,49, or 1,39%, to R108,50 and brewer SABMiller inched up ten cents to R170,10.
Mobile operator MTN Group was R1,15 higher, at R125,85 and fixed-line operator Telkom climbed 97 cents to R148,97.
Nedbank was R1,22, or 1,1% lower, at R109,38 and Standard Bank declined R1, or 1,09%, to R92,49. - I-Net Bridge
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