/ 30 July 2008

JSE rallies, but gold miners fall

The JSE remained well in the black at noon on Wednesday, inspired by gains in overseas markets, with losses restricted to the gold-mining sector on the falling bullion price, traders said.

By 11.56am, the all-share index was 1,47% higher. Resources were up 1,56%, the platinum-mining index was up 1,64% but the gold-mining index slumped 3,27%. Banks strengthened 2,33%, financials added 2% and industrials were 1,12% in the black.

The rand was bid at 7,39 to the dollar from 7,44 when the JSE closed on Tuesday, while gold was quoted at $908,65 a troy ounce from $916,77 at the JSE’s last close.

“European stocks are right up there after a good showing on Wall Street last night [Tuesday night]. The market is taking its cue from there,” one trader said.

Dow Jones Newswires reports that the United Kingdom FTSE 100 rose 1,2%, or 62,6 points, to 5 381,80, with the London market helped by the strong performance on Wall Street on Tuesday.

On the JSE, gold miners fell hard as the precious metal succumbed to a further sell-off due to a stronger dollar, traders said.

AngloGold Ashanti was down R8,28, or 3,38%, to R236,72, Gold Fields fell R3,77, or 4,24%, to R85,23 and Harmony lost R1,11, or 1,44%, to R75,99.

On the resource index, Anglo American rallied R12, or 2,91%, to R425 and BHP Billiton gained R3,79, or 1,56%, to R246,50.

Sasol recovered R6,25, or 1,65%, to R385 as the price of crude oil steadied at about $122 per barrel.

Among platinum miners, Anglo Platinum climbed R20,50, or 2,12%, to R987 and Impala Platinum improved R3,70, or 1,60%, to R234,50.

In earnings news, steel maker ArcelorMittal South Africa surged R7, or 3,65%, to R199 after reporting a 45% increase in headline earnings per share to 1 027 cents for the six months ended June from 708 cents a year ago. Diluted HEPS rose to 1 023 cents from 706 cents before and diluted EPS rose to 1 022 cents from 703 cents previously.

An interim dividend of 342 cents per share was declared.

Dual-listed pulp and paper firm Mondi earlier reported that interim headline earnings per share rose by 6% to 18,3 Euro cents from 17,3 cents a year ago. An interim dividend of 7,7 Euro cents was declared, compared with 7,3 cents a year earlier.

Shares in Mondi Limited were up six cents to R44,31 and Mondi gained 50 cents, or 1,35%, to R37,50.

Among banks, Nedbank was R2,63, or 2,53%, higher at R106,52, Standard Bank leaped R1,52, or 1,70%, to R91,04, Absa gained R3,38, or 3,37%, to R103,63 and FirstRand rallied 45 cents, or 2,81%, to R16,45.

Official data showed earlier that local CPIX (consumer inflation less mortgage costs) — a key measure of inflation — rose to 11,6% year on year in June, raising fears of another interest-rate hike next month. — I-Net Bridge