JSE off to a slow start
May 5, 2009
By Gareth Vorster
Johannesburg - The JSE opened relatively flat on Tuesday as strong gains in Monday's trade were largely pegged back and as markets awaited the London opening.
By 9.20am, the JSE all share index had edged up 0.24 percent, led by a 0.84 percent increase in resources, a 0.24 percent rise in platinum miners and a 1.04 percent firming for gold mining stocks. Banks were 0.16 percent higher, financials were flat (up 0.02 percent) while industrials declined 0.28 percent.
The rand was last bid at R8.32 to the dollar from R8.26 when the JSE closed on Monday. Gold was quoted at $902.65 per ounce from $902.62 at the JSE's last close, and platinum was at $1 120 per ounce, from $1 118.50 at its previous close.
A local trader said the local market was largely flat in morning trade after good ground was made on Monday.
"We are seeing a slower start this morning after a good day yesterday. We should see more movement during the day as London gets going, having been closed yesterday," the trader said.
Dow Jones Newswires reported that European stock markets are expected to open mostly higher on Tuesday, boosted by a strong performance in the US and Asia as global risk appetite appears to be tentatively returning.
"Oil touched a five-month high so this will serve as a boost to the petrochemicals sector whilst some upbeat Chinese economic data is also adding to the feel-good factor," said Matt Buckland, dealer at CMC Markets.
Buckland called London's FTSE 100 index, which opens after an extended weekend break, up 72.8 points, or 1.7 percent, at 4 316.0, playing catch-up with its European peers.
Frankfurt's DAX index is called down 6.5 points, or 0.1 percent, at 4 896.0, and the CAC-40 index in Paris up 3 points, or 0.1 percent, at 3 241.0.
He also noted that interest in the swine flu outbreak is ebbing as fatalities remain unreported outside Mexico.
Meanwhile, Asian share markets were higher on Tuesday, with cyclical stocks and coal miners rising on signs of stability in the global economy.
However, trading was quiet with markets shut in Japan, South Korea and Thailand.
Among early movers on the JSE, Anglo American rose R2.12, or 1.10 percent, to R194.62 and BHP Billiton added R1.40 to R186.40. Petrochemicals group Sasol was up or R1.52 to R274.42.
Among gold miners, AngloGold Ashanti was up R5.12, or 1.91 percent, to R273.12 and Gold Fields climbed R1.28, or 1.40 percent, to 92.90 rand, while Harmony shed R1.66, or 2.07 percent, to R78.65. Platinum miner Anglo Platinum was up R12.14, or 2.51 percent, to R496.14 while Impala Platinum (IMP) shed 54c to R171.36. Lonmin added R12.02, or 6.39 percent, to R200.01.
Among industrials, brewer SABMiller lost R1.65 or 1.13 percent to R145 and British American Tobacco dipped R3.25, or 1.57 percent, to R203.20.
Sappi lost 93c or 3.72 percent to R24.06. The pulp and paper producer on Tuesday reported a basic loss per share of 7 US cents for the quarter ended March 2009 compared with basic EPS of 6 cents in the December quarter and basic EPS of 43 cents in the March 2008 quarter.
Sales for the quarter dropped 10.9 percent to $1.31-billion from $1.47-billion for the same quarter a year ago.
Rival Mondi Plc shed R1.15 or 4.84 percent to R22.60.
Standard Bank added 35c to R86.85 while Nedbank advanced R1.03, or 1.15 percent, to R90.93. Old Mutual Plc dropped 15c, or 1.7 percent, to R8.65.
Telecommunications group MTN Group gave up R1 to R117.80 and Telkom added 83c, to R117.63, after both made good gains on Monday.
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