JSE ends flat on US data
November 6, 2009
The JSE ended flat on Friday, up 36 points, having edged into the red in late afternoon trade pressured by US unemployment data, which rose more than expected.
At 5pm the JSE all share index was flat, up 0.14 percent, with resources collecting 0.85 percent, gold miners firming 2.80 percent and platinum producers edging up 0.18 percent.
Banks were down 2.32 percent and financials lost 1.33 percent, but industrials inched 0.10 percent higher.
The rand was bid at R7.50/$ to the dollar from R7.60/$ when the JSE closed on Thursday.
Gold was quoted at $1 096.60 a troy ounce from $1 090.15 at the JSE's last close, and platinum was at $1 352/oz, from $1 351.50/oz at its previous close.
"It's the jobless data in the US. The last time the number was above 10 percent was in 1983, this figure shook the market," a trader said.
"The banks led the decline. Sentiment around banks this week has been negative. They had a good run and were at overbought levels."
"The rand has kept its gains relatively well and that puts pressure on the resource sector," he said.
"The gold sector is hanging on to its gains. That is on risk aversion after the data, and people are seeking a safe haven," he added.
Dow Jones Newswire reported that US stocks swung from a deep decline to slightly higher at the open on Friday after a report showed US unemployment hit its highest level in more than 26 years in October.
Shortly after the opening bell, the DJIA traded up 5 points at 10 018.
Financials and consumer companies were the hardest hit with JPMorgan, American Express and Walt Disney pacing the move lower.
Both sectors had been at the forefront of a 200-point rally in the Dow on Thursday.
Helping to keep the Dow in the green, General Electric rose 4.7 percent after Oppenheimer boosted its rating on GE to outperform from perform, saying the conglomerate's financial portfolio is stabilising.
Broadly, the market was weighed down by the Labour Department report, which said US unemployment rose more than expected in October and employers cut more jobs than forecast, a sign the labour market continues to struggle as the economy emerges from its deep recession.
The unemployment rate, calculated using a survey of households as opposed to companies, rose by 0.4 percentage point to 10.2 percent. Economists surveyed by Dow Jones Newswires had forecast an increase to 9.9 percent.
Non-farm payrolls fell by 190 000 last month, with the largest job losses in construction, manufacturing, and retail trade. Economists had expected a 175 000 decrease.
On Wall Street, traders noted some surprise that the morning's declines weren't more severe, especially given the big jump on Thursday.
Mark Turner, co-head of sales trading for Instinet, noted stocks were getting a lift from transports, which were helped by a decline in oil prices.
"And though the headline number on jobs was pretty bad, some of the revision numbers were actually a little better," said Turner. "That's why there wasn't a huge move to the downside."
At the time the JSE closed, the Dow Jones Industrial Average was last flat, up 0.03 percent.
On the JSE, Anglo American Plc added R3.89, or 1.32 percent, to R298, while BHP Billiton eased seven cents to R212.82.
Petrochemicals group Sasol collected 50 cents to R292.
Kumba Iron Ore gained five rand, or 2.22 percent, to R230.
AngloGold Ashanti advanced R10.70, or 3.55 percent, to R312.01, Gold Fields was R1.92, or 1.84 percent, stronger at R106.02 and Harmony rose R2.20, or 2.75 percent, to R82.19.
Platinum miner Anglo Platinum firmed R2.67 to R675, but Lonmin weakened 26 cents to R194.74.
In diversified miners, African Rainbow moved R2.13, or 1.39 percent, higher to R155 and Exxaro put on R1.25, or 1.47 percent, to R86.40.
Elsewhere on the JSE, SABMiller was barely changed, down three cents, to R205.48, Bidvest declined R1.85, or 1.55 percent, to R117.70, Imperial gave up R1.44, or 1.82 percent, to R77.57 and British American Tobacco shed R2.90, or 1.18 percent, to R243.67.
Banker Standard Bank lost R2.64, or 2.77 percent, to R92.61, Nedbank was down R1.47, or 1.28 percent, to R113 and FirstRand was off 55 cents, or 3.25 percent, to R16.35.
Financial services group Old Mutual weakened 35 cents, or 2.57 percent, to R13.26.
Sugar group Tongaat Hulett lost R1.49, or 1.49 percent, to R98.40.
Media group Caxton collected 58 cents, or 4.03 percent, to R14.98 and Naspers garnered R7.75, or 2.78 percent, to R286.75.
Among retailers, Pick n Pay was down 40 cents, or 1.03 percent, to R38.50, Spar weakened 81 cents, or 1.25 percent, to R63.79, Lewis fell R1.14, or 2.24 percent, to R49.75 and Mr Price declined 45 cents, or 1.39 percent, to R32.
Cement manufacturer Pretoria Portland Cement was 66 cents, or 2.06 percent, weaker at R31.34.
Telecommunications group MTN Group inched up 15 cents to R116, but Telkom declined one rand, or 2.35 percent, to R41.50 and Vodacom eased 27 cents to R52.38. - I-Net Bridge
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