The JSE edged into positive territory by noon on Monday, with gains in precious metal counters providing firm support.
By noon, the JSE all-share index had added 0,52%, with resources firming 1,05%, gold miners collecting 0,99% and platinum miners jumping 5,11%.
Banks were flat, up 0,02%, financials were up 0,38%, and industrials were flat, down 0,03%.
The rand was last bid at 9,68 to the dollar, from 9,83 when the JSE closed on Friday. Gold was quoted at $906,40/oz a troy ounce from $907,90/oz at the JSE’s last close, and platinum was at $987/oz from its previous close of $999,50/oz.
“The mining shares are pretty strong and are giving the market a boost,” a local trader said.
“It’s looking good especially after Friday’s late rally. These platinum counters are really looking strong.
“The market is now waiting for Obama’s stimulus package. There are hopes that the automotive stimulus package will help boost platinum stocks as well.
“Some of the stocks that we hit quite hard last week are now up, probably on bargain hunting. These include the like of Liberty International and the paper groups.”
“Dow futures are down, but overall, it’s looking pretty positive again,” he added.
Dow Jones Newswires reports that shares in Barclays advanced but London stocks were generally lower.
The FTSE was last down 0,36%.
US stocks are expected to open lower as investors consolidate gains from Friday’s rally, said Marko Jagustin, trader at GFT Global Markets.
He called the DJIA to open down 65 points and the S&P 500 down 9,5 points.
On the JSE, Anglo American edged up 29 cents to R212,45 but BHP Billiton weakened 90 cents to R192,60.
Petrochemicals group Sasol was up R9,71, or 3,45%, to R291,20.
Paper group Sappi collected R1,30, or 4,39%, to R30,90 and rival Mondi added 76 cents, or 2,64%, to R29,56.
Kumba Iron Ore gained R4,49, or 2,59%, to R177,99.
Gold miner AngloGold Ashanti added R10,50, or 4,02%, to R272. The miner earlier reported that it produced 1 268oz of gold in the quarter ended December — up from 1 265oz in the September quarter and ahead of previous market guidance.
The group said the December quarter adjusted headline loss was $17-million, distorted by annual accounting adjustments which totalled $48-million relating to inventory write-downs, current and deferred tax provisions. Hedge buy-backs resulted in a full year adjusted headline loss of $897-million, against adjusted headline earnings of $278-million in 2007.
The adjusted headline loss per share was five US cents per share after a loss of 34 US cents in the September quarter, with an adjusted headline loss per share of 283 US cents for the full year after adjusted HEPS of 99 cents per share in 2007.
The group also reported a sharp improvement in safety at its mines in the year ended December 2008, reducing fatalities by 57%, while a 20% improvement was achieved on all accidents.
Speaking during a presentation of the group’s results on Monday, CEO Mark Cutifani acknowledged the work being done at all AngloGold Ashanti’s mines, saying that the group had delivered on its commitment on safety across all its operations, but there was still “a long way to go”.
Gold Fields was down R1,89 or 1,75%, to R106 and Harmony eased 39 cents to R113,62
Platinum miner Anglo Platinum was up R6,96, or 1,58%, to R446,96, Impala Platinum gained R8,90 or 7,21%, to R132,40 and Lonmin put on R1,89, or 1,30%, to R147,59.
In diversified miners, African Rainbow lost 2,49 rand, or 1,99%, to R122,51 but Exxaro was up 83 cents, or 1,18%, to R71,33.
Among industrials, brewer SABMiller collected R1,60 to R169,60, Barloworld weakened 49 cents, or 1,46%, to R33,11 Remgro lost R2,19, or 2,88%, to R73,81 and Imperial weakened 70 cents, or 1,28%, to R54,19.
Banker Absa firmed R1,74, or 1,76%, to R100,74. It earlier reported that its banking division had recorded a dip in diluted headline earnings per share of 1,9% to 2 175,2 cents for year ended December 31.
By contrast, the group recorded growth in diluted headline earnings per share of 7,3% to 1 412,1 cents. The group’s dividend for the year improved by 6,3% to 595 cents a share. Despite highlighting risks to the domestic economy, Absa said organic growth for the group is not expected to be constrained by prevailing market conditions, as it currently generates sufficient capital from its operations to fund growth.
Standard Bank edged up 29 cents to R76,58 but Nedbank was off 80 cents to R93,70.
RMB Holdings shed 90 cents, or 3,66%, to R23,70 but Sanlam edged up 19 cents, or 1,14%, to R16,89.
PSG Group was weakened 55 cents, or 3,33%, to R14,50. It announced earlier that Sanlam Life Insurance Limited will acquire the balance of its investment in Channel Life Limited of 34,6%. Sanlam Life said it wants to incorporate Channel Life as part of its larger stable.
Ceramic tiles and sanitary ware company Italtile was unchanged at R2,60. The company earlier reported diluted headline earnings per share of 17,1 cents for the six months to end December 2008 from 17,4 cents a year ago. It had maintained its dividend cover of around three times and declared an interim dividend of six cents per share compared with four cents a year ago.
Sugar group Illovo lost 43 cents, or 1,75%, to R24,20 and Tongaat-Hulett weakened 92 cents, or 1,35%, to R67,08.
Media group Naspers gave up R1,75, or 1,08%, to R160,50 and Avusa lost 50 cents, or 2,94%, to R16,50.
Retailer Woolies was off 15 cents, or 1,11%, to R13,40, Lewis gained R1,70, or 4,10%, to R43,20 and Steinhoff was up 15 cents, or 1,21%, to R12,55.
Construction group Aveng added 1,30 rand, or 5%, to R27,30, Group Five was up 96 cents, or 3,23%, to R30,70 and WBHO added R1,31, or 1,40%, to R94,81.
Liberty International gained R1,69, or 3,08%, to R56,50.
Among telecommunications groups, MTN Group edged up 12 cents to R100,12 and Telkom was barely changed, down one cent, to R112,74. I-Net Bridge