JSE edges up on resource recovery
June 18, 2009
By Palesa Motloung
Johannesburg - Stocks edged higher on Thursday supported by a recovery in resource stocks, which took a beating in Wednesday's session.
By 9.16am, the JSE all share index had edged up 0.98 percent with resources adding 1.87 percent, platinum counters rising 1.33 percent and gold stocks firming 1.94 percent. Banks were flat, up 0.27 percent, financials collected 0.32 percent and industrials edged up 0.34 percent.
The rand was last bid at R8.03/$ from R8.12/$ when the JSE closed on Wednesday. Gold was quoted at $940.40/oz from $933.15/oz at the JSE's last close, and platinum was at $1 215/oz, from $1 201/oz at its previous close.
"We have edged higher this morning. We took most of the pain yesterday after the pullback in commodities," a local equities trader said.
"US futures are looking better, although Asia was down this morning. Resources are seeing most of the interest coming back and there is more upside coming through.
"We also have futures close out today, so we are likely to see much bigger volumes," she said.
Dow Jones Newswires reports that most US stocks fell on Wednesday amid weakness for commodity and financial stocks, although strength in consumer and technology stocks such as Microsoft and Bed Bath & Beyond helped the Nasdaq stay in the black.
The Dow fell 7.49 points, or 0.09 percent, to 8497.18. The Dow fell for the third straight session and registered its lowest close since May 28. The broad Standard & Poor's 500 fell 1.26, or 0.14 percent, to 910.71.
The technology-oriented Nasdaq Composite, which has outstripped the mainstream indexes since the rally began on March 9, rose 11.88, or 0.66 percent, to 1808.06 and is now up 43 percent from its low.
"After one of the best three-month rallies since the Great Depression, a shallow, light volume pullback could be in place until earnings season kicks up next month," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.
"The market rally has told us 'the recession is ending'," Detrick said. "Well, now it is time for the economic data to prove this or we could be set for a big fall.
"Economic data going forward very well could be the key to the sustainability of this rally off of the March lows."
Asian shares are lower on Thursday as investors try to pin down a near-term direction for markets, with exporter shares in Tokyo hurt by ongoing resilience in the Japanese yen. Resource stocks fell.
Japan's Nikkei ended down 1.4 percent and Hong Kong's Hang Seng was last 1.3 percent lower.
European bourses are likely to start a bit higher with defensive stocks seen drawing interest in an overall weaker market.
Among equity movers on the JSE, Anglo American was up R4.13, or 2.01 percent, to R209.50 and BHP Billiton added R3.65, or 2.03 percent, to R183.65. Petrochemicals group Sasol rose R5, or 1.69 percent, to R301.50.
Paper group Sappi collected 70c, or 2.86 percent, to R25.19 and Mondiwas up R1.28, or 3.94 percent, to R33.78. Kumba Iron Ore gained R3, or 1.69 percent, to R180.
Gold miner AngloGold Ashanti put on R5, or 1.69 percent, to R301, Gold Fields added R2.72, or 2.91 percent, to R96.23 and Harmony rose R1.30, or 1.55 percent, to R85.
Gold and uranium miner Simmer & Jack Mines lost 14c, or 5.41 percent, to R2.45. The miner earlier reported a 9 percent rise in gold production to 183,036oz for the year ended March 2009.
The group reported revenue was up 56 percent to R1.3-billion, while gross profit was reported at R91.8-million after a loss of R60-million the year before.
The company reported a diluted headline loss per share of 37.87c per share after a loss of 16.10c a year ago, while earnings per share amounted to 250.56c after a loss of 16.43c a year ago.
The group said the 2009 financial year was marked by many challenges, including the crisis in the capital markets, ongoing volatility in metal prices and exchange rates as well as inflationary pressure on mining consumables, power and fuel.
Platinum miner Anglo Platinum rose R8.87, or 1.67 percent, to R538.97 and Impala Platinum advanced R1.99, or 1.23 percent, to R164.
In diversified miners, African Rainbow firmed R2.18, or 1.73 percent, to R128.18.
Elsewhere on the JSE, brewer SABMiller collected 90c to R163.35 and Bidvest advanced R1.39, or 1.49 percent, to R94.39.
Among bankers, Nedbank added R1.39, or 1.50 percent, to R93.89 and all the other banks were flat.
Financial services group Old Mutual collected 17c, or 1.76 percent, to R9.82.
Sugar group Tongaat-Hulett was up R3.18, or 4 percent, to R82.68.
Among retailers, Spar added R2.30, or 4.21 percent, to R56.88 and Lewis was up 90c, or 1.98 percent, to R46.30, but JD Group weakened 42c, or 1.06 percent, to R39.08. Construction group Aveng was up 40c, or 1.14 percent, to R35.50.
Among telecommunications groups, MTN Group edged up 17c to R118.66 and Telkom put on 28c to R32.48.
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