/ 21 April 2008

JSE remains firm on world markets

South African stocks hung on to earlier gains at noon on Monday, supported by firmer overseas markets, but the stronger rand and faltering gold prices restricted gains, traders said.

By midday on Monday, the JSE’s broader all-share index was 0,77% in the black. Resources were up 1,21%, the platinum-mining index advanced 0,34% but the gold-mining index fell 0,70%. Industrials improved 0,55%, banks firmed 1% but financials eased 0,13%.

The rand was bid at 7,78 to the dollar from 7,76 when the JSE closed on Friday, while gold was quoted at $917,17 a troy ounce from $912,42/oz at the JSE’s last close.

“There’s not much on the local front; we are following overseas markets and in London the guys seems to have welcomed plans by the Bank of England to swap banks’ mortgages for government bonds,” one trader said.

Traders attributed the losses among gold miners on the easing bullion price and the strengthening rand.

On the JSE, resources group Anglo American improved R5,01 to R526, BHP Billiton gained 2,39%, or R6,61, to R283 and Sasol added 2,43%, or R10,71, to R450,96.

AngloGold Ashanti added R1,06 to R289,06 while Gold Fields fell 2,25%, or R2,59, to R112,61.

Anglo Platinum was flat at R1 350, Impala Platinum was up R1,50 at R334,50 and Lonmin lifted R2,60 to R493,80.

Elsewhere, brewer SABMiller strengthened R2,10, or 1,13%, to R187,40 and consumer food brands firm Tiger Brands was up 52 cents to R147,03.

Fixed-line phone operator was up nine cents to R130,25 but mobile telecoms firm MTN was down 56 cents to R132,95.

Among banks and financials, Standard Bank was up 1,22%, or R1,10, to R91,30 and Nedbank improved 1,35%, or R1,55, to R116,50.

Life insurer Sanlam slumped 4%, or 87 cents, to R20,88 as the counter began trading ex-dividend. Old Mutual was down 13 cents to R19,32. — I-Net Bridge