JSE ends higher on Dow
April 1, 2009
By Palesa Motloung
The JSE staged a recovery and managed to end higher on Wednesday taking direction from the Dow which, after opening weaker, also clawed its way into the black on the back of improved manufacturing data in the US.
By 5pm, the JSE all share index had added 1.86%, with resources gaining 1.70%, platinum miners adding 6.22% and gold counters firming 3.39%.
Banks collected 0.78%, financials were up 1.10% and industrials rose 2.44%.
The rand was last bid at R9.37/$, from R9.47/$ when the JSE closed on Tuesday. Gold was quoted at $920.63/oz from $916.39/oz at the JSE's last close, and platinum was at $1,126.50/oz from its previous close of $1,119.50/oz.
"We are looking quite strong now. The manufacturing data in the US pushed the Dow into positive territory and we took direction from there," an equities trader said.
"These financial stocks are still under some pressure, but they are looking better than they were earlier in the day. The gold and platinum stocks are trading firm."
Dow Jones Newswires reports that US stocks erased an early swoon on Wednesday after an encouraging report on manufacturing offset grim employment figures.
A report from payrolls firm Automatic Data Processing showed a 742,000-job plunge in private sector payrolls during March, worse than the decline of about 650,000 most economists had expected. The government will issue its reading on March payrolls Friday.
Stocks' early losses reversed after the Institute for Supply Management said its manufacturing index came in at 36.3 for April, a still-weak reading but also an improvement from a month earlier, when the index was at 35.8.
A reading of 50 or less indicators contraction in the sector, but a gauge of new orders within the report rose, giving investors some hope for a revival in demand. A gauge of employment in the report also was marginally improved.
At the time the JSE closed, the Dow Jones Industrial Average had collected 0.65%.
On the JSE, Anglo American was up R2.44, or 1.53%, to R162.15, but BHP Billiton gave up 52 cents to R187.15.
Petrochemicals group Sasol weakened 34 cents to R274.66.
ArcelorMittal gained R7.90, or 10.81%, to R81 and Kumba Iron Ore firmed R8.68, or 5.30%, to R172.60.
Gold miner AngloGold Ashanti was up five rand, or 1.45%, to R350, Gold Fields added R7.40, or 7.08%, to R111.90 and Harmony put on R3.99, or 3.97%, to R104.40.
Aflease Gold gave up 2 cents, or 1.26%, to R1.57. The miner earlier reported a reduced headline loss per share of 5.71 cents per share for the year ended December 2008 after a loss of 15.7 cents a year ago.
As reported in its trading update of 27 March, the reduction in headline loss from R81.9 million to R44.8 million was as a result of reduced general and administrative costs as well as a fair value adjustment to the bond liability.
Available capital was in turn strategically focused on the company's core development project, Modder East.
Among platinum miners, Anglo Platinum firmed R22, or 4.62%, to R498, Impala Platinum added R11.75, or 7.42%, to R170 and Lonmin collected one rand to R192.
In diversified miners, African Rainbow was up R3.49, or 2.52%, to R141.98 and Exxaro gained R4.96, or 7.16%, to R74.20.
Elsewhere on the JSE, brewer SABMiller put on R2.83, or 2.01%, to R143.90, Barloworld gained R1.10, or 3.44%, to R33.10, Remgro added R1.49, or 2.21%, to R68.99, Bidvest put on R1.45, or 1.65%, to R89.40 and Tiger Brands firmed R3.66, or 2.70%, to R139.
However, British American Tobacco gave up R4.25, or 1.94%, to R214.90 and Imperial lost R2.60, or 4.86%, to R50.85.
Among banks, FirstRand rose 74 cents, or 6.14%, to R12.80 and all the other major banks were flat.
Capitec Bank Holdings lost 45 cents, or 1.39%, to R32. It earlier reported a 43% increase in diluted headline earnings per share to 359 cents for the year ended February 2009 from 251 cents a year ago.
Headline earnings were up 42% to R302 million from R212 million a year ago.
A final dividend of 110 cents per share was declared which together with the interim dividend gives a total dividend for the year of 140 cents per share.
Financial services group Old Mutual added 40 cents, or 5.71%, to R7.40, Sanlam was up 30 cents, or 1.78%, to R17.14 and Investec put on 89 cents, or 2.29%, to R39.75.
Nambian Trustco, which recently became the first company to list on the JSE's Africa Board, was down 2 cents, or 2.63%, to 74 cents.
It earlier advised on Wednesday that its earnings for the year ended 31 March 2009 were expected to increase by between 15% and 35% and headline earnings by between 40% and 60% over those of the previous corresponding period.
Revenue increased by between 65% and 75% compared to the previous financial period.
Trustco, ranking fourth on the Namibian Stock Exchange with a market capitalisation of N$500 million (R500 million), was the first company to list on the recently created Africa Board of the JSE.
Sugar group Illovo lost 30 cents, or 1.05%, to R28.19.
Caxton gave up 50 cents, or 4.17%, to R11.50.
Retailer Woolies was up 60 cents, or 5.26%, to R12, Pick n Pay added 74 cents, or 2.51%, to R30.25, JD Group added R1.54, or 4.67%, to R34.55, Foschini put on R1.81, or 4.12%, to R45.75 and Mr Price firmed R1.10, or 4.54%, to R25.35.
Liberty International rose 75 cents, or 1.42%, to R53.55.
Construction group Aveng was up R1.85, or 7.10%, to R27.90, Group Five put on R1.44, or 5.10%, to R29.69 and Murray & Roberts added R2.50, or 6.17%, to R43.
Cement manufacturer Pretoria Portland Cement strengthened R1.91, or 6.08%, to R33.30.
Telecommunications group MTN Group rose R4.20, or 4%, to R109.20 and Telkom was up R3.01, or 2.85%, to R108.50.
|
|
