JSE firms on gold price, weaker USD
November 4, 2009
By Gareth Vorster
South African stocks ended in the black on Wednesday, pushed by a record gold price and firmer resources amid a weaker dollar.
At 5pm the JSE all share index had collected 0.66%, led by gold miners firming 5.19%. Resources added 1.66% and platinum producers were up 2.82%.
Banks were flat, down 0.80%, as were financials, down 0.45%, while industrials edged up 0.13%.
The rand was bid at R7.67/$ from R7.85/$ when the JSE closed on Tuesday. Gold was quoted at $1,090.47 a troy ounce from $1,061.40 at the JSE's last close - having hit a new record of $1,095.65 earlier - and platinum was at $1,364/oz, from $1,353/oz at its previous close.
A local trader said: "Gold prices have hit record highs today, pushing gold stocks higher, and resources are also trading nicely with a weaker dollar, which has helped to push up stocks."
The gold price jumped to a new record high of $1,095.65 earlier after the price continued to capitalise on the news that India had bought 200 tons of gold from the International Monetary Fund.
Dow Jones Newswire reported that US stocks opened higher on Wednesday as the lowest number of monthly layoffs since March 2008 and an as-expected drop in private sector jobs were seen as encouraging signs for the government's monthly jobs report on Friday.
The Dow Jones Industrial Average was up 62 points, or 0.6%, to 9833, with 29 of its 30 components in the black.
Alcoa jumped 3%, while Walt Disney rose 2.7% after it announced it got the go-ahead from China's central government to pursue a plan to build a theme park in Shanghai.
Other components up more than 2% included Merck and Bank of America. Kraft was the one component in the red, down 2.5% after reporting weaker-than-expected sales in the third quarter and lowering its outlook for sales growth this year.
Expectations for the government's monthly jobs report Friday rose Wednesday morning after payroll giant Automatic Data Processing and consultancy Macroeconomic Advisors reported a 203,000 drop in private-sector jobs last month, on par with the drop expected by economists and smaller than September's decline.
On the JSE, Anglo American Plc was up R4.30, or 1.49%, to R293.50 and BHP Billiton edged up R1.74 to R213.
Petrochemicals group Sasol eased R2.76 to R290.74.
AngloGold Ashanti put on R12.36, or 4.08%, to R315.26, Gold Fields was up six rand, or 5.91%, to R107.50 and Harmony rose R5.59, or 7.32%, to R82.
Platinum miner Anglo Platinum firmed R19.26, or 2.90%, to R683.26, Impala Platinum was up R5.04, or 3%, to R173 and Lonmin added R3.60, or 1.88%, to R195.10. Aquarius firmed R1.79, or 5.39%, to R35.
In diversified miners, African Rainbow was up five rand, or 3.36%, to R154 and Exxaro rose R1.80, or 2.12%, to R86.70.
Elsewhere on the JSE, brewer SABMiller was down R1.85 to R204.15, with British American Tobacco short R3.53, or 1.43%, to R243.62.
Electrics group Reunert wavered four rand, or 7.48%, to R49.50.
Among banks, Standard Bank weakened R1.29, or 1.36% to R93.71, and ABIL dropped 44 cents, or 1.54%, to R28.17.
Financial services group Discovery garnered 55 cents, or 1.85%, to R30.30.
Retailer JDG Group fell R1.72, or 4.07%, to R40.49 and Spar declined 95 cents, or 1.41%, to R66.45. Massmart however, profited one rand, or 1.14%, to R89.
JD Group on Wednesday advised shareholders that earnings and headline earnings per share for the twelve months ended August 31 2009 had been adversely affected by a tax settlement and restructuring expenses in addition to increased debtors costs, and are as a result expected to be between 80% and 90% lower than those reported for the previous corresponding
period.
JD Group said should the effect of the tax settlement and the restructuring expenses amounting to R409 million be disregarded, the earnings and headline earnings per share for the full year were expected to be between 0% and 5% lower than those reported for the previous corresponding period.
Murray & Roberts gained R1.35, or 2.47%, to R56, while Group Five shed one rand, or 2.57%, to R37.90. Cement manufacturer Pretoria Portland Cement was up 80 cents, or 2.52%, to R32.50.
Telecommunications group MTN Group was down 98 cents to R114.01 and Telkom collected 59 cents, or 1.42%, to R42.20.
Media group Naspers added R7.56, or 2.81%, to R277.06, but Avusa was down one rand, or 4.76%, to R20.
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