The JSE remained in positive territory on Thursday following the direction of European markets, which were trading higher after gaining some confidence on news that the United States Senate had approved a financial rescue plan.
“Even though the Dow closed down, we are seeing that local markets and European markets are still up,” a trader said.
He explained that markets are “holding their breath for the final decision on the US bailout, which will decide how the market will trade”.
“It needs to be made clear, however, that the bailout is only a short-term solution to a long-term problem,” the trader said.
“It is toxic on the market at the moment,” he added, pointing out that there is still a lot of volatility ahead of the bailout decision.
The trader explained that if the bailout outcome is positive, we might see markets rally. He explained, however, that the rallying would most likely be as a result of sellers using the “positiveness” to sell off what they are holding.
At 12.09pm, the all-share index was 0,97% higher, with resources up 0,66%. Platinum stocks lost 3,42% and gold stocks shed 1,51%.
Industrials were up 0,96%, financials gained 1,74% and banks firmed 0,91%.
The rand was bid at 8,36 to the dollar from 8,26 when the JSE closed on Wednesday, while gold was last quoted at $868,65 a troy ounce from $880,75 when the JSE last closed.
Platinum was trading at $996,50/oz, from a previous close of $1 020/oz.
Brent crude was at $94,08 per barrel, from its previous close of $95,33 per barrel.
Dow Jones Newswires reports that the FTSE 100 gained 0,9% at 5 004,4, moving higher on Thursday due to gains in financials and mining stocks. News that the US Senate approved the rescue plan injected some much-needed confidence in the banking sector.
US stock futures were pointing to a mixed start on Thursday as the Senate approved its version of the $700-billion bailout package and as one of the first banks to have been hit by the subprime crisis, UBS AG, said it’s going to be profitable after four quarters of red ink.
S&P 500 futures fell three points to 1 165,40 while Nasdaq 100 futures rose nine points to 1 587,80. Dow industrial futures fell 28 points.
On the JSE, Anglo American was up R6, or 2,23%, to R275 and BHP Billiton was up R2,30, or 1,29%, to R180,80.
Sasol gained R5,30, or 1,60%, to R337,30.
Among gold miners, Gold Fields lost 73 cents to R80,47 and AngloGold fell R7,93, or 4,15%, to R183,07.
Platinum miner Impala Platinum dropped R8,23, or 4,97%, to R157,52, Lonmin lost R8,65, or 3,18%, to R263,50 and Anglo Platinum fell R15,05, or 1,97%, to R750.
In other miners African Rainbow jumped R8,76, or 5,42%, to R170,26 and Hulamin gained 71 cents, or 4,10%, to R18,01.
Financial services group Old Mutual gained 48 cents, or 4,21%, to R11,88 while Sanlam was up 17 cents to R18,17.
Among banks Standard Bank gained 88 cents, or 1%, to R88,69, Absa put on R1,31, or 1,21%, to R109,41 and Investec gained R2,64, or 5,62%, to R49,65.
Elsewhere on the JSE, brewer SABMiller lost 35 cents to R158,21, Richemont was up 70 cents, or 1,92%, to R37,20 while Imperial gave up R1,39, or 2,25%, to R60,41.
Among telecommunications groups, MTN was up R1,59, or 1,43%, to R112,59 and Telkom gained R2,06, or 1,93%, to R108,56.
Retailer Woolworths was up 32 cents, or 2,79%, to R11,80. Earlier on Thursday the retailer advised its shareholders that all the conditions precedent relating to the acquisition by Absa of 50% plus one share of the issued ordinary share capital of Woolworths Financial Services have now been fulfilled.
Electronics holding company Jasco remained unchanged at R2,49. The company on Thursday morning announced an increase in diluted headline earnings per share for the six months to August 31 of 80,9% to 20,6 cents from 11,4 cents in the same period in 2007. Headline earnings per share lifted 38,9% to 23,5 cents. — I-Net Bridge