/ 26 November 2008

JSE recovers early losses, now flat

After opening more than 1% lower on Wednesday, the JSE clawed back and was little changed from its overnight levels by midday.

By noon the all-share index was flat (0,03%), with platinum counters up 1,01% and gold miners adding 0,39%. Resources were flat (-0,09%).

Banks were up 1,86% and financials collected 0,61%. However, industrials gave up 0,14%.

The rand was last bid at 9,91 to the dollar from R9,79 when the JSE closed on Tuesday, while gold was last quoted at $817,15 a troy ounce from $815/oz at the JSE’s last close.

The platinum price was at $867,50/oz from its previous close of $857,50/oz and Brent crude was at $51,40 per barrel from $50,35 before.

A trader noted that local markets are continuing to gain momentum and confidence as the S&P 500 remained above the all-important level of 850.

“Markets will still need to consolidate their recent gains. The more we do so at these levels, the more chance we could be geared for a year-end rally,” he said.

“Volatility, however, is still a factor. We will continue to watch global markets, particularly the S&P, for direction,” he added.

He pointed out that the rand is stable and it will continue to track movements in the Dow.

“The better-than-expected CPI data also cheered local markets,” he said.

Data released by Stats SA showed the increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas was up 12,4% year-on-year in October from 13,0% y/y in September.

CPIX was expected to have increased at 12,5% y/y in October, according to I-Net Bridge’s Econometer.

Headline consumer prices – the 12-month rate of change in the consumer price index (CPI) for metropolitan areas – was up 12,1% y/y in October from a 13,1% y/y increase in September. CPI was expected to have increased at 12,4%.

Dow Jones Newswires reports that European stocks headed north as investors welcomed China’s 108 basis point interest rate cut in efforts to boost economic growth. In London, the FTSE 100 was last down 1,23%.

On the JSE, resources giant Anglo American added R3,61, or 1,62%, to R226,61, but BHP Billiton was off R4, or 2,35%, to R166.

Paper and packaging group Sappi gave up 87 cents, or 2,35%, to R36,13 and Mondi edged down 15 cents to R29,35.

Petrochemicals group Sasol was up 49 cents to R256,50.

Gold miner AngloGold Ashanti added R5,01, or 2,49%, to R206,01 but Gold Fields shed R1,34, or 1,67%, to R79,06 and Harmony was off 47 cents to R81,55.

Among platinum miners Anglo Platinum collected R8, or 1,83%, to R446, Impala Platinum put on 55 cents to R115,55 and Lonmin added R1,44, or 1,11%, to R131,44.

Among industrials, brewer SABMiller weakened R4,60, or 2,94%, to R151,65 and Remgro gave up R1, or 1,35%, to R73.

Imperial was up 50 cents, or 1,04%, to R48,50 and Tiger Brands (TBS) firmed R1,65, or 1,21%, to R137,90.

Banker Nedbank was up R1,30, or 1,42%, to R92,90, Absa added R2,10, or 2,02%, to R106,25 and FirstRand edged up 52 cents, or 3,47%, to R15,52.

Financial services group Old Mutual lost 25 cents, or 3,18%, to R7,60 but RMB Holdings was up 60 cents, or 2,50%, to R24,60.

Construction group Aveng collected 80 cents, or 2,67%, to R30,80 and Murray & Roberts was up R1,01, or 2,28%, to R45,25, but Group Five lost R1,06, or 3,59%, to R28,50.

Telecommunication group MTN Group rose R2,43, or 2,41%, to R103,43 but Telkom gave up 28 cents to R102,47.

Chemical services group Omnia was up R1, or 2,04%, to R50. The group earlier reported a 281% increase in headline earnings per share to 839 cents per share for the six months ended September 2008 from 224,5 cents a year ago.

Diluted HEPS rose to 803,5 cents per share from 222,4 cents before. An interim dividend of 100 cents per share was declared.

Media group Naspers collected R4,50, or 3,08%, to R150,50. The company earlier reported 470 cents in fully diluted core headline earnings per share for the six-month period ended September, down from 482 cents the same time a year ago. – I-Net Bridge