JSE up on resources, weighed by Dow
August 5, 2009
By Gareth Vorster
South African stocks just managed to end in the green on Wednesday led by resources, after the index weakened in the afternoon session tracking a softer Dow.
At 5pm, the JSE all share had added 0.29%, with resources up 0.80%. Gold miners weakened 1.21%, but platinum counters gained 0.27%.
Banks shed 0.89% with financials flat, up 0.15%, while industrials were flat, down 0.20%.
The rand was bid at R7.97/$, from $7.81/$ when the JSE closed on Tuesday. Gold was quoted at S$962.35/oz from $962.60/oz at the JSE's last close, and platinum was at $1,270.50/oz, from $1,265.50/oz at its previous close.
A local trader said: "The market strengthened steadily throughout the day, led by resources. The weaker rand also benefited dual listers.
"However, the index saw some selling off pretty late on after the Dow opened weaker," he said.
Dow Jones Newswires reports US stocks were under pressure on Wednesday as investors focused on the job market as the biggest piece of the economic puzzle that still needs to fall into place for a sustained recovery.
The Dow Jones Industrial Average was recently off 100 points at 9220.
Data from the consulting firm Automatic Data Processing and Macroeconomic Advisors showed a slowing but still-brisk pace of private-sector job losses.
The private sector shed 371,000 jobs last month, more than the 350,000 economists expected but less than the number of jobs eliminated in previous months. The report is a precursor to the government's monthly jobs report, due on Friday.
A report on US service sector was also weaker than expected. The Institute for Supply Management said its monthly index of non-manufacturing activity was 46.4 in July, down from 47.0 in June, indicating a quickening contraction in activity.
Some investors are still taking a breather after the market's summer rally.
Major indices came into Wednesday's action at their highest levels since the fall, when the financial and economic crises were in their early stages.
Strategist Phil Guarco, of JP Morgan Private Bank, said his firm has been putting more of its clients' cash to work in both debt and stocks lately, including a more aggressive push into small-capitalisation stocks that have lagged the recent rally.
While Guarco said he believes a broader global recovery is under way, he's also still on guard against the lingering effects of the recession's final stages, including weakness in the employment sector.
Earnings reports continued to move individual stocks. Procter & Gamble, a Dow and S&P component, slid 3.6% after reporting a 18% decline in its net and projecting further declines in sales in the current quarter.
Whole Foods Market rose nearly 21% after its increased its earnings forecast.
On the JSE, Anglo American added R8.02, or 3.09%, to R267.52, with BHP Billiton flat at R212.75.
Petrochemicals group Sasol gained R2.48 to R288.
Among gold miners, AngloGold Ashanti gave up R8.85, or 2.85%, to R302.15.
Platinum miner Anglo Platinum surged R27.75 higher, or 4.70%, to R617.90, but Impala Platinum shipped R3.65, or 1.89%, to R189.75.
Lonmin swelled R6.05, or 3.23%, to R193.30 and Aquarius Platinum added R1, or 2.78%, to R36.98.
Highveld Steel rose R3.79, or 5.61%, to R71.30.
Among diversified miners, African Rainbow increased R5.22, or 3.78%, to R143.22 and Kumba Iron Ore advanced R6.50, or 2.95%, to R226.50. Exxaro picked up R2, or 2.38%, to R86.
Metal giant ArcelorMittal moved R5.69, or 5.29%, higher to R113.29.
Among industrials, SABMiller dropped 45 cents to R180.78 , but British American Tobacco garnered R2.14 to R248.08.
Imperial lost R1.50, or 2.19%, to R67.
Forestry and paper products group Mondi slipped 15 cents to R37.85.
The group reported a 104% drop in headline earnings for the six months of 2009 by posting a headline loss of EUR 0.8 cents compared to EUR 18.3 cents for the first six months of 2008.
Underlying profit fell 48% to €138 million in the six months to end June 2009 from €263 million in the same six months a year ago while group revenue dropped 20% to EUR 2.6 billion from €3.3 billion the year before.
Mondi declared an interim dividend of EUR 2.5 cents a share.
Among banking stocks, Standard Bank was a fraction down, losing 85 cents to R92.40, while Nedbank declined R3.08, or 2.80%, to R106.95.
Nedbank reported a 34.1% decline in diluted headline earnings per share to 474 cents for the six months ended June from 719 cents a year ago.
Diluted earnings per share were down 30.5% to 611 cents for the period. The group declared an interim dividend of 210 cents per share.
The group said net asset value per share increased 7.4% to 8,762 cents.
Absa waned R2, or 1.66%, to R118.51, with Investec down R1.27, or 2.22%, to R56. Santam dropped R1.50, or 1.7%, to 86.50.
Old Mutual picked up 32 cents, or 2.56%, to R12.80.
The group reported adjusted operating earnings per share on an IFRS basis of 5.4 pence for the six months ended June 2009 from 7.7 pence a year ago.
It reported a basic loss per share (IFRS) of 1.8 pence for the six months ended June after earnings per share of 11.2 pence a year ago.
The group reported adjusted operating profit before tax of £538 million compared with £7 73 million a year ago, but profit before tax fell to £160 million from £853 million before.
Retailer Lewis was R1.04, or 2.05% to the good at R51.79, with Massmart picking up R1.78, or 2.31%, to R78.78.
Among construction firms, M&R Holdings saw a R1.62 lift, or 3.30%, to R50.77, with Cashbuild gaining R2.89, or 4.19%, to R71.89. Aveng claimed R1.46, or 3.79%, to R39.96.
Telecommunications group MTN Group was down 99 cents to R127, but Telkom gained 40 cents, or 1.05%, to R38.60. Vodacom slipped 61 cents, or 1.07%, to R56.50.
Media Group Naspers shed R3.01, or 1.28%, to R231.98.
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