Miners keep JSE in the black
September 12, 2009
By Palesa Motloung
Stocks ended in the black on Friday supported by impressive mining stocks with the gold price moving back above the US$1,000 level in what an equities trader said was asession supported by the availability of liquidity.
At 5pm the JSE all share index had collected 0.99%, with resources firming 1.82%, gold counters adding 2.75% and platinum counters gaining 2.72%.
Banks were flat, up 0.07%, financials and industrials edged up 0.39% and 0.38% respectively.
The rand was bid at R7.45/$ to the dollar from R7.57/$ when the JSE closed on Thursday. Gold was quoted at $1,009.09 a troy ounce from $994.22/oz at the JSE's last close, and platinum was at $1,315.50/oz, from $1,281.50/oz at its previous close.
"Markets are still looking quite strong, gold is back above US$1,000 and the rand has once again started to strengthen," the Johannesburg-based trader said.
"Markets are continuing to run on liquidity being available to prop up markets. Mining shares led us up, they have put in some good runs.
"But its not only these mining shares, it's across the board really. There are a few areas where we are seeing a bit of weakness, but it's still looking good. Dow Jones is up at the moment as well and Europe was strong, it's all as a result of appetite for risk. There is a view that we can see an economic recovery coming through. It's the availability of liquidity that is supporting this market," he said.
Dow Jones Newswires reported that an upbeat profit forecast from FedEx lifted transportation stocks on Friday, but other sectors paused following the market's five-day winning streak.
The Dow Jones Industrial Average, which has risen nearly 350 points over the last five sessions, was recently off by four points, trading at 9623.70.
But the Dow Jones Transportation Average posted strong gains, up 1.9% to 3970.68, helped by a 5.6% gain in FedEx shares. The delivery giant said that its first-quarter earnings are likely to exceed guidance.
Transport stocks have helped lead throughout its recent winning streak, with many investors placing bets that trucking companies, railroads, and shipping companies will be among the first to benefit as economic activity picks up.
Other indexes swung between gains and losses in early action. The technology-oriented Nasdaq Composite Index was recently off 0.1%. The S&P 500 was up 0.1%, buoyed by a 1% gain in its energy sector.
New data showed U.S. import prices jumped 2% in August as oil prices rose. Import prices are still down about 15% relative to a year ago.
Signs of strength abroad put fresh pressure on the dollar, which has fallen to its lowest levels of the year this week amid signs that overseas economies may be pulling out of recession more quickly than the US.
However, shortly before the local market closed, the Dow Jones Industrial Average turned around and had last edged up 0.02%.
Back in Johannesburg, Anglo American Plc collected 62 cents to R258.17 and BHP Billiton gained R3.86, or 1.84%, to R213.11.
Petrochemicals group Sasol added R6.90, or 2.29%, to R308.
Highveld Steel put on R1.01, or 1.35%, to R76.01 and Kumba Iron Ore gained R13.55, or 5.35%, to R267.05.
Gold miner AngloGold Ashanti strengthened R8.75, or 2.74%, to R327.90, Goldfields was up R2.50, or 2.35%, to R109 and Harmony advanced R3.27, or 3.88%, to R87.50.
Platinum miner Anglo Platinum jumped R24.93, or 3.60%, to R717, Impala Platinum firmed R4.50, or 2.45%, to R188 and Lonmin was up R3.64, or 1.73%, to R213.70.
In diversified miners African Rainbow put on R2.26, or 1.43%, to R160.26 and Exxaro strengthened R2.70, or 2.99%, to R93.
Among industrials on the JSE, brewer SABMiller gave up R2.16, or 1.18%, to R180.50 and British American Tobacco declined R3.09, or 1.26%, to R242.40, but Barloworld gained R3.20, or 6.99%, to R49.
Banking group Nedbank added R2.01, or 1.76%, to R116.01 and FirstRand put on 21 cents, or 1.35%, to R15.76.
Retailer Truworths was up R1.56, or 4.01%, to R40.50, Massmart rose R2.69, or 3.31%, to R84, Foschini added two rand, or 3.31%, to R62.50 and Steinhoff advanced 70 cents, or 4.27%, to R17.10.
Construction group Aveng gained R2.30, or 5.49%, to R44.20, Murray & Roberts put on R4.90, or 8.48%, to R62.70 and WBHO advanced R4.30, or 3.64%, to R122.50.
Cement manufacturer Pretoria Portland Cement was up R1.18, or 3.51%, to R34.80.
Telecommunications group MTN Group declined R1.05 to R126.25 but Telkom edged up 20 cents to R45.
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