/ 30 September 2008

JSE up on stronger global markets

The JSE moved into stronger territory on Tuesday, pushed mainly by resources which recovered from a fall of over 2% in early trade.

Traders say the market was moving up following the trend in international markets, which managed to erase earlier losses after the announcement of the
rejection of the US bailout plan.

International markets began to show some signs of recovery on the possibility of an agreement on another bailout plan this week.

“We are just up on positive sentiment coming from overseas markets,” a local trader said.

At 12.06pm, the all-share index was 0,86% higher, with resources up 1%; platinum miners shed 1,29% and gold stocks gained 1,23%.

Industrials were up 0,71%, financials firmed 0,65% and banks edged 0,18% higher.

The rand was bid at 8,30 to the dollar from 8,20 when the JSE closed on Monday, while gold was last quoted at $895,85 a troy ounce from $897,15
when the JSE closed on Monday.

Platinum was trading at $1 046/oz, from a previous close of $1 080/oz.

Brent crude was at $95,28 per barrel, from its previous close of $93,98 per barrel.

Dow Jones Newswires reports that the FTSE 100 gained 0,5% at 4 840,97, staying positive in wake of UK second quarter GDP data, which came in zero percent on the quarter and up 1,5% on the year, broadly in line with economists’ expectations.

Nicola James, an economist at Lloyds TSB says the numbers were “bang in line with our forecasts” and the upward annual revision was due to the downward revision to 2007 figures. She saw no chance of a rate cut in the foreseeable future. Markets have rallied from earlier lows as the market begins to assume another form of the bailout plan will be agreed this week.

On the JSE, Anglo American was up R2,59 to R273,07 with rival BHP Billiton gaining R4,87, or 2,65%, to R188,61.

Sasol was down 76 cents to R337,22.

Among gold miners Gold Fields gained R2,19, or 2,81%, to R79,99, Harmony was up R1,95, or 2,44%, to R81,95 while AngloGold lost R1,01 to R190.

Among platinum miners, Anglo Platinum jumped R11,08, or 1,55%, to R727,08 and Lonmin gained R3 to R317, while Impala Platinum was down R5,70, or 3,54%, to R155,50.

Exxaro lost R2,99, or 3,46%, to R83,50 and African Rainbow Minerals lost R1,99, or 1,28%, to R153,51.

Financial services group Old Mutual was up 20 cents, or 1,82%, to R11,20 with Sanlam up 16 cents to R16,66.

Among banks, Standard Bank was up 95 cents, or 1,11%, to R86,75 while FirstRand shed 26 cents, or 1,61%, to R15,91.

Among industrials, brewer SABMiller was up R1,85, or 1,17%, to R159,60 and luxury goods group Richemont was up 58 cents, or 1,59%, to R37,10.

MTN was up 89 cents to R104,99 and Telkom was unchanged at R105.

Celcom was unchanged at 34 cents. Earlier in the day
the telecoms firm reported a 25% increase to 1,38 cents in headline EPS for the 12-month period ended June compared with the same period a year ago. – I-Net Bridge