/ 30 June 2008

Resources keep JSE in the black

South African stocks remained in the black at midday on Monday, thanks to firm resources stocks, which are benefiting from soaring metals prices.

At noon, the all-share index was up 0,52%, led by a 1,21% jump in resources and a 1,79% rise in gold miners. However, the platinum mining index was off 0,91%. Industrials were 0,20% lower, financials were down 0,81% and banks fell 0,53%.

The rand was bid at 7,82 to the US dollar from 7,90 when the JSE closed on Friday, while gold was quoted at $934,40 a troy ounce from $922,70/oz at the JSE’s last close.

Traders said the main activity was in resources, as the stronger rand was countered by strong gains in commodity prices.

Gold in particular was looking very strong, with the yellow metal extending last week’s gains in Asia after some early profit taking, traders and analysts said.

Dow Jones Newswires reports that bullion looks set to extend its rally towards the next level of resistance at $935 a troy ounce on the back of a weakening dollar and concerns of accelerating inflation, they said.

Gold rallied to the highest level since May 22 in Friday overnight trading as investors sought refuge from mounting signals of inflation pressures and the dollar dropping to a three-week low against the euro.

Meanwhile Dow Jones Newswires also reported that US stock futures are indicating a lower open on Monday, continuing the trend of last week’s substantial falls, said Claire Collingwood, a trader at CMC Markets in London.

“Oil prices and poor sentiment among the financials remain the key concerns among investors, as crude continues to breach record highs and the negative outlook from banks in relation to further write-downs persist,” said Collingwood.

A local trader said that most of the JSE’s activity was in the resources sector, with five of the top six highest value traded stocks being resources.

“All the activity is in resources, but it’s not surprising given where the gold price and other metals prices are,” said a local trader.

Among resources, giant Anglo American added R11,29, or 2,14%, to R539,47 and BHP Billiton added R1,51 to R296,01.

Sasol jumped R14,50, or 3,14%, to R477 as oil prices continued to climb. London Brent crude hit a fresh high above $143 per barrel on Monday, and was last at $143,45/barrel.

Among gold miners AngloGold Ashanti added R7,75, or 2,98%, to R267,75 and Gold Fields was up R1,25, or 1,26%, to R100,25 while Harmony climbed 33 cents to R96,82.

Platinum miner Angloplat shed R28,55, or 2,08%, to R1 345,35, and Implats fell R1,50 to R319,50.

Brewer SABMiller advanced R2,21, or 1,26%, to R177,31 and Richemont shed 20 cents to R43,35.

Among banks, Standard Bank fell 17 cents to R75,59, Nedbank was off R1,98, or 2,12%, to R91,50, Absa lost 93 cents, or 1,11%, to R83,06 and FirstRand gave up five cents to R13,30. – I-Net Bridge