/ 3 November 2008

JSE remains higher on global markets

The JSE remained higher at midday on Monday in line with overseas markets which were being buoyed by hopes that central banks would continue to cut interest rates, traders said.

Badly beaten down resources added the most points to the benchmark all-share index, buoyed further by rising metal prices while gold counters failed to capitalise on the firmer bullion price, one Johannesburg-based trader said.

“Generally things are looking a lot more stable. We saw Asia putting up a good show and Europe is looking very good as well after a number of countries cut interest rates last week. I think the recovery might still have some steam left,” said Ferdi Heyneke, a trader at Afrifocus Securities.

At noon, the all-share index was up 0,77%, thanks to a 1,28% rise in resources. The platinum mining index was up 0,46% but the gold mining index fell 2,21%.

Industrials added 0,81%, banks were up 0,72%, while financials lost 0,19%.

The rand was bid at 9,75 to the dollar from 9,96 when the JSE closed on Friday, while gold was last quoted at $734 a troy ounce from $734,28/oz at the JSE’s last close.

The platinum price was at $831/oz, from $808/oz previously, and Brent crude was at $64,17 from its previous close of $65,32.

In Europe, the London FTSE 100 index was last up 0,70%, the Paris CAC 40 index added 0,36% and the German Dax index rose 0,85%.

Among equity movers on the JSE, Anglo American was up R8,15, or 3,41%, to R247,50 and BHP Billiton added R4,84, or 2,88%, to R172,70.

However, Sasol fell R7,85, or 2,72%, to R280,65.

Anglo Platinum was up R13, or 3,25%, to R413, but Impala Platinum lost R1,40, or 1,39%, to R99,50.

Gold miners bucked the stronger tone in the mining sector despite modest gains in the bullion price.

Heyneke said last week’s quarterly results reflected underlying cost pressures.

AngloGold Ashanti slumped R4,51, or 2,39%, to R183,98, Gold Fields lost R2,05, or 2,97%, to R66,95 and Harmony eased 80 cents, or 1,09%, to R72,90.

Elsewhere, brewer SABMiller was up R1,30 to R157,30, Barloworld jumped R2, or 3,54%, to R58,50 and Tiger Brands was R1,68, or 1,18%, higher at R143,63.

Nedbank was up R2,30, or 2,45%, at R96, FirstRand added 16 cents, or 1,14%, to R14,15 but Absa was off 75 cents to R100,25.

Life insurer Old Mutual slipped 33 cents, or 3,89%, to R8,16 and specialist banking group Invested Limited, tumbled R4,30, or 9%, to R43,49. – I-Net Bridge