South African stocks were sharply firmer in noon trade on Thursday as the recovery in resources and mining stocks continued amid generally firmer world markets.
Some good company results added to the improved sentiment, while a slightly firmer rand limited some of the gains by rand-hedged stocks.
By midday, the all-share index was up 2,34%, lifted by a 4,51% recovery in resources. Gold miners added 3,04% and platinum miners collected 4,75%.
Industrials were up just 0,56%, with financials adding 0,30% and banks 0,55%.
The rand was bid at 7,81 to the dollar from 7,89 when the JSE closed on Wednesday, while gold was quoted at $833,35 a troy ounce from $821,33/oz at the JSE’s last close. Platinum was last quoted at $1 524/oz, up $20,50/oz from its overnight close.
Dow Jones Newswires reports that a comeback in commodities is helping resource shares rebound.
United States stock futures rose on Thursday ahead of the latest earnings report from Wal-Mart Stores and inflation data, with former Federal Reserve chairperson Alan Greenspan predicting that house prices may bottom next year.
S&P 500 futures rose 3,1 points to 1 287,70 and Nasdaq 100 futures added four points to 1 945,50. The Dow industrial futures rose 30 points.
US stocks ended lower on Wednesday after a rebound in oil prices and a Merrill Lynch downgrade of leading banks. The Dow industrials fell 109 points, the S&P 500 dropped three points and the Nasdaq Composite lost two points.
Thursday’s session features results out of Wal-Mart Stores, which could report a rising profit as consumers traded down to lower-price goods.
“The market is up quite strongly on the back of resources and mining stocks — particularly resources as the recovery in metal prices continues. We also had some good company results from the likes of Exxaro and a favourable trading update from African Rainbow Minerals.
“World markets are also looking a bit better, but our market has really held up well. The firmer rand, however, is paring some of the gains in the case of certain rand-hedged stocks,” a local equities trader said.
ARM said it expects headline earnings per share for the twelve months ended June 30 to increase to between 1 700 and 2 000 cents per share from 580 cents per share the same period last year.
Basic earnings per share are expected to be in the range of 1 900 and 2 300 cents per share, up from 586 cents last year.
ARM’s share price was last up 5,48%, or R12,52, at R241,02.
Among resources, Anglo American was up R16, or 3,87%, to R429 and BHP Billiton was R13,33, or 6%, higher at R235,35.
Sasol gained R13,99, or 3,58%, to R404,99.
Exxaro, which earlier reported a 9,7% increase in diluted headline earnings per share (HEPS) for the first half of 2008, was up R6,35, or 6,45%, to R104,84.
The group said diluted HEPS for the six months to end June 2008 came in at 360 cents compared with diluted HEPS of 237 cents posted for the same period last year.
Platinum miner Anglo Platinum recovered R28,10, or 3,11%, to R933 and Impala Platinum was up R13,90, or 6,43%, to R230,10.
Among gold miners, AngloGold Ashanti rallied R8,24, or 3,73%, to R229, Gold Fields climbed R2,01, or 2,73%, to R75,51 and Harmony was up R1,27, or 2,01%, to R64,57.
Among industrials, luxury goods group Richemont was down 15 cents to R45,90 and brewer SABMiller was 67 cents weaker at R167,90.
Among banks, Standard Bank gave up 11 cents to R89,89, but Absa was 19 cents stronger at R109,93, Nedbank 83 cents stronger at R105,41 and FirstRand up 28 cents at R15,55. — I-Net Bridge