/ 20 October 2008

JSE up on resources, global markets

The JSE remained in positive territory by noon on Monday, pushed up by strong resource prices and still taking direction from stronger European markets.

“Markets are up and that is mainly on the back of stronger resources. We are seeing some buying in those sectors,” a trader said.

“However, banks are coming under some pressure,” added the trader.

“I would, however, be very wary of the current moves,” the trader said, adding that taking into account the current volatility of the markets, the rallies could be very short-lived.

“I would wait to see if there is a definite turn in the market,” he said.

The trader said that local markets are watching international trends closely and are waiting to see how United States markets will trade later on Monday.

At 12.02pm, JSE’s all-share index was up 1,58%. Resources gained 3,63% and platinum stocks added 3,21%, while gold stocks gave up 0,87%.

Industrials were 0,52% higher, banks came down 1,54% and financials shed 0,56%.

At noon the rand was bid at 9,92 to the dollar from 10,09 when the JSE closed on Friday, while gold was last quoted at $803,80 a troy ounce from $781,80/oz at the JSE’s last close. Platinum was at $897/oz, up 5,47% from the Friday close of $850,50/oz.

Dow Jones reports that shares in Prudential jumped in London on Monday morning, helping the top index to rise, after a report that it may sell a 20% stake in itself in order to build up its Asian operations.

Shares in Prudential rose 12,9%, making the insurer by far the best percentage performer in the top London index.

Overall, the FTSE 100 index advanced 1,5%, or 62,70 points, to 4 125,71. Other European shares were trading higher, while US stock futures were pointing to a positive start across the Atlantic.

US stocks are expected to rise sharply at the open on the back of positive trading in Europe and Asia, reflecting a generally upbeat mood, says Martin Slaney, trader at GFT Global Markets.

He calls the DJIA to open up 136 points at 8 988.

“We’ve seen a little bit of easing in the money-lending market that gives some positive sentiment, but this is certainly not the end of the bear market,” he says.

On the JSE, Anglo American was up R6,65, or 2,90%, to R235,65 and BHP Billiton added R7,93, or 5,03%, to R165,50.

Sasol jumped R17,59, or 6,66%, to R281,59.

Gold miner AngloGold was up R2,21, or 1,16%, to R193,20 while Gold Fields lost R2,51, or 3,70%, to R65,24 and Harmony was down R1, or 1,22%, to R81.

Among platinum miners, Anglo Platinum gained R24,80, or 4,96%, to R524,80 and Impala Platinum came up R3, or 2,52%, to R122, while Lonmin fell R6,96, or 3,15%, to R214,29.

Elsewhere on the JSE, brewer SABMiller was down R4,55, or 2,91%, to R151,70, luxury goods group Richemont shed nine cents to R36,91 while Bidvest added R2,05, or 2,24%, to R93,75.

Among bankers, Nedbank was down R1,60, or 1,90%, to R82,70 and FirstRand lost 46 cents, or 3,34%, to R13,30.

Investec dropped R1,27, or 3,18%, to R38,68.

Among financial services groups, Old Mutual jumped 78 cents, or 9,40%, to R9,08 while Sanlam edged up 11 cents to R15,56.

In the news, financial services group Peregrine Holdings lost 39 cents, or 4,88%, to R7,61. The group advised on Monday that, in respect of the six-month period ending September 30 2008, basic earnings per share and headline earnings per share are expected to be between 70% and 80% lower than for the previous comparable period. The group’s published earnings per share and headline earnings per share for the previous interim period were 129,7 cents and 127 cents respectively.

Telecommunications group MTN Group gained R3,79, or 4,07%, to R96,80 and Telkom was up R2,91, or 2,77%, to R107,90.

Paper and packaging group Mondi gave up 41 cents, or 1,05%, to R38,69. The group announced on Monday that it expects its full-year underlying operating profit to shrink by between 10% and 15%, reflecting a downturn in Europe and international division. — I-Net Bridge