Rallying gold miners keep JSE firm

A gold-stocks rally kept the JSE firm by midday on Monday, but banking stocks were lagging.

The JSE all-share index had gained 1,45%, with resources collecting 2,58%, platinum miners rising 2,99% and gold stocks climbing 9,93%.

Banks were flat (down 0,05%), financials edged up 0,17% and industrials collected 0,75%.

The rand was last bid at R10,22 to the dollar, from R10,36 when the JSE closed on Friday. Gold was quoted at $900,80/oz a troy ounce from $880,35/oz at the JSE’s last close, and platinum was at $962/oz from its previous close of $955,50/oz.

“We are holding firmly, but there are still areas where the market is looking unsure,” a trader said.

“Banking stocks are down and some of the dual listed are still struggling. It’s also quite surprising that Sasol shares are not reacting to the stronger oil price.”

With the eastern markets being closed, there is obviously not much direction in the market, he said.
“There is still a run for safety and gold stocks are climbing. The dollar has also weakened and that is why these commodity prices are up.”

“The uncertainty regarding the state of global economies is there and locally we will have to wait and see what happens with the inflation indicators out this week,” he added.

Dow Jones Newswires reports that London stocks were higher on Monday with Barclays shares surging, taking back a portion of losses made by the lender since the start of the year, with the gains helping the top London share index to advance more than 1%.

The FTSE 100 was last up 1,11%.

US stocks are expected to fall sharply at the open, as bearish sentiment continues to weigh on investors who await further details on the Obama administration’s economic stimulus package, said Marko Jagustin, trader at GFT Global Markets.

He called the DJIA to open down 70 points and the S&P 500 down 6,5 points.

On the JSE, Anglo American was up R2,39, or 1,35%, to R179 and BHP Billiton edged up 98 cents to R163,58.

Petrochemicals group Sasol gave up 45 cents to R258,75.

Highveld Steel lost 50 cents, or 1,01%, to R49 but Kumba Iron Ore collected R2,01, or 1,49%, to R137,01.

Gold miner AngloGold Ashanti firmed R23,60, or 8,71%, to R294,60, Gold Fields rose R11,18, or 12,21%, to R102,73 and Harmony added R11,60, or 11%, to R117,10.

Platinum miner Anglo Platinum gained R19, or 4,60%, to R432 and Impala Platinum was up R2,54, or 2,14%, to R121,04.

In diversified miners, Exxaro was up R2,59, or 4,18%, to R64,59.

Among industrials, SABMiller added R3,76, or 2,46%, to R156,76 but Barloworld gave up 85 cents, or 2,36%, to R35,15, Remgro fell R1, or 1,40%, to R70,50 and Imperial was off R1,17, or 2,14%, to R53,50.

Banker Standard Bank lost R1, or 1,39%, to R71 but Absa firmed R2,30, or 2,51%, to R93,80 and FirstRand collected 16 cents, or 1,23%, to R13,17.

Financial services group Old Mutual rose 25 cents, or 3,45%, to R7,50 but RMB Holdings was off 67 cents, or 3,15%, to R20,62.

Short-term insurer Mutual and Federal added R1, or 7,41%, to R14,50.

Sugar group Illovo gave up 31 cents, or 1,22%, to R25.

Retailer Spar was off R1,49, or 2,61%, to R55,50 and Massmart shed R3,21, or 3,71%, to R83,22.

However, JD Group added 64 cents, or 1,78%, to R36,50 and Foschini was up 50 cents, or 1,09%, to R46,25.

Construction group Murray & Roberts added 74 cents, or 1,72%, to R43,74.

Telecommunications group MTN Group firmed R3, or 3,23%, to R96 but Telkom gave up R1,21, or 1,07%, to R112,29.—I-Net Bridge

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