Resources, miners push JSE higher
September 11, 2009
South African stocks extended gains and were 393 points firmer by noon on Friday pushed higher by a good performance among resource and mining counters.
At 12pm the JSE all share index had gained 1.55 percent, with resources firming 2.46 percent, gold counters adding 1.76 percent and platinum counters gaining 2.13 percent.
Banks were up 0.79 percent, financials collected 0.83 percent and industrials put on 0.91 percent.
The rand was bid at R7.56/$ from R7.57/$ when the JSE closed on Thursday. Gold was quoted at $999.65 a troy ounce from $994.22/oz at the JSE's last close, and platinum was at $1 290/oz, from $1 281.50/oz at its previous close.
"The dollar is really weakening and that is driving the risky trade. There is foreign money flowing into our market and people are buying the Anglos and Billitons," a trader said.
"Gold miners are up and resources are also definitely getting buying interest. A lot of people want the market to come down, but it just keeps moving up."
"However, volumes remain a bit shaky. I would still be careful and wait and see what happens with the Dow late today," he said.
Dow Jones Newswires reported that the FTSE 100 added gains on Friday, above the key 5000 level with notable support being seen amongst the heavyweight mining stocks as ongoing dollar weakness continues to bode well for precious metals prices, said IG Index.
"Whether the 5 000 level can hold through to the weekend remains to be seen," added IG, noting that any additional downside pressure from Wall Street could spill over into London.
On the economic plate, US University of Michigan confidence at 15:55 SA Time and US wholesale inventories at 16:00 SA Time.
"Any shortfall (in US data) could extend the desire to book profits on what has been a healthy week of gains," added IG.
The FTSE 100 was up 0.70 percent. US stocks are seen a touch lower following five days of consecutive gains said David Morrison at GFT.
He called DJIA down 25 points and S&P 500 down two points. Thinks the equity rallies now look over-extended.
Also noted US Treasury Secretary's saying on Thursday that it's time to start winding-down support for the financial system.
Morrison said this would be a major challenge. "If withdrawal is perceived as too early or too rapid, investors could...rush to dump equities," he warns.
US import prices are at 14:30 SA time and wholesale inventories at 16:00 SA time.
Back in Johannesburg, Anglo American plc was up R6.95, or 2.70 percent, to R264.50 and BHP Billiton gained R7.09, or 3.39 percent, to R216.34.
Petrochemicals group Sasol added R3.30, or 1.10 percent, to R304.40.
Highveld Steel put on 99 cents, or 1.32 percent, to R75.99, ArcelorMittal advanced R1.30, or 1.11 percent, to R117.90 and Kumba Iron Ore gained R5.94, or 2.34 percent, to R259.44.
Gold miner AngloGold Ashanti strengthened R5.36, or 1.68 percent, to R324.51, Gold Fields was up R1.48, or 1.39 percent, to R107.98 and Harmony advanced R2.47, or 2.93 percent, to R86.70.
Platinum miner Anglo Platinum jumped R20.92, or 3.02 percent, to R712.99, Impala Platinum firmed R2.80, or 1.53 percent, to R186.30 and Lonmin was up R7.56, or 3.60 percent, to R217.62.
In diversified miners Exxaro strengthened R2.20, or 2.44 percent, to R92.50.
Among industrials on the JSE, brewer SABMiller put on R1.24 to R183.90, TigerBrands advanced R2.50, or 1.65 percent, to R154 and Imperial was up R1.77, or 2.25 percent, to R80.27.
Banking group Standard Bank firmed R1.15, or 1.17 percent, to R99.50 and Nedbank added R1.64, or 1.44 percent, to R115.64.
Financial services group Old Mutual collected 13 cents, or 1.10 percent, to R11.93 and Sanlam rose 41 cents, or 2.03 percent, to R20.58.
Retailer Woolies was up 33 cents, or 2.11 percent, to R15.99, JD Group put on 80 cents, or 1.89 percent, to R43.10, Steinhoff rose 49 cents, or 2.99 percent, to R16.89 and Mr Price advanced 76 cents, or 2.58 percent, to R30.26.
Construction group Aveng gained R2.05, or 4.89 percent, to R43.95 and Murray & Roberts put on R2.45, or 4.24 percent, to R60.25.
Telecommunications group MTN Group collected 40 cents to R127.70 and Telkom was up 74 cents, or 1.65 percent, to R45.54, but Vodacom edged down 20 cents to R54.30.
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