/ 5 February 2009

JSE edges up ahead of rates decision

The JSE edged into positive territory by noon on Thursday after starting the day in the red, with a surge in platinum counters offering firm support as market players await the interest-rate decision.

By noon, the JSE all-share index had collected 0,50%, with resources edging up 0,46% and platinum miners adding 2,67%. However, gold stocks gave up 1,15%.

Banks were up 0,75%, financials added 0,52% and industrials were up 0,56%.

The rand was last bid at 9,97 to the dollar, from 10,06 when the JSE closed on Wednesday. Gold was quoted at $909,90/oz a troy ounce from $903,05/oz at the JSE’s last close, and platinum was at $975/oz from its previous close of $964/oz.

“It’s looking good in places. The miners are holding up strongly,” a local equities trader said.

“We are seeing buying come into certain areas, particularly the interest rate-sensitive stocks. Otherwise, there isn’t much really happening, everyone is just waiting for the interest-rates decision later today [Thursday],” he added.

Dow Jones Newswires reports that the FTSE 100 was low as economic concerns took their toll and investors worried about the corporate earnings outlook. House-price figures from HBOS were surprisingly positive, said a trader, “but continuing economic pressures are likely to prevent any full- blown recovery”, he said. Financial stocks also continued to decline.

The FTSE 100 was last down 0,54%.

US stocks are seen opening a few ticks lower, as jitters remain high ahead of Friday’s non-farm payrolls report, said Martin Slaney, trader at GFT Global Markets.

On the JSE, resources giant Anglo American collected 49 cents to R198,50 and BHP Billiton edged up 80 cents to R181,85.

Petrochemicals group Sasol added R3,28, or 1,23%, to R270,48.

Paper group Sappi was barely changed, up nine cents to R28,79, while rival Mondi weakened 41 cents, or 1,35%, to R30.

ArcelorMittal gained R5,40, or 6,62%, to R87, Highveld Steel was up R1,90, or 3,71%, to R53,15 and Kumba Iron Ore firmed R7,16, or 4,62%, to R162,16.

Gold miner AngloGold Ashanti shed R6,20, or 2,30%, to R263,25 and Harmony gave up R1,30, or 1,12%, to R114,50.

Platinum miner Anglo Platinum fell R2,50 to R397,50 and Lonmin was down R2, or 1,38%, to R142,50, but Impala Platinum was up R5,13, or 4,66%, to R115,13.

Northam Platinum was up 84 cents, or 4,69%, to R18,74. The miner earlier reported that its diluted headline earnings per share for the six months to December 31 had fallen 43,5% to 113,5 cents when compared with the same period a year ago. It also reported a drop in the interim dividend to 38 cents from 145 cents seen at the same time in 2007. The full year dividend on June 30 2008 was 330 cents.

Aquarius Platinum was unchanged at R25,66.

In diversified miners, African Rainbow added R1,27, or 1,09%, to R117,47 and Exxaro rose R1, or 1,50%, to R67,50.

Among industrials, brewer SABMiller firmed R2,12, or 1,27%, to R168,87 and Famous Brands was up 45 cents, or 2,88%, to R16,10.

Banker Standard Bank was up 99 cents, or 1,37%, to R73,30, Nedbank collected 71 cents to R92,77 and the other banks were flat.

Financial services group Old Mutual edged up eight cents to R8,58, Sanlam collected nine cents to R16,62 and African Bank firmed 45 cents, or 1,67%, to R27,35.

Sugar group Tongaat Hulett gave up R1, or 1,49%, to R66.

Media group Avusa was off 48 cents, or 2,78%, to R16,76.

Furniture retailer Lewis shed R1,50, or 3,51%, to R41,25 and JD Group was down 95 cents, or 2,68%, to R34,55, but Steinhoff added 22 cents, or 1,83%, to R12,22.

Packaging group Nampak collected 14 cents, or 1,03%, to R13,74.

Electronic and technology company Allied Electronics Corporation shed R1,75, or 7,29%, to R22,25. It reported earlier that it expected its full year headline earnings per share to February 2009 to be between 25% and 35% lower compared with the previous period. Diluted adjusted headline earnings per share are seen down between 15% to 25%. This calculation includes an adjustment for the amortisation of intangibles arising from recent acquisitions.

Information technology group Dimension Data lost 26 cents, or 4,99%, to R4,95 and Datatec weakened 84 cents, or 5,56%, to R14,26.

Telecommunications group MTN Group was up 70 cents to R96,90 and Telkom gained R1,26, or 1,10%, to R115,44. — I-Net Bridge