JSE recovers slightly on Dow futures
November 13, 2009
Although still in the red, the JSE recovered slightly and was flat, down 16 points, by noon on Friday with positive Dow futures providing some support amid profit taking in global markets.
At 12.03pm the JSE all share index was flat, down 0.05 percent, with resources down 0.31 percent, platinum producers weakening 1.04 percent and gold miners falling 2.08 percent. Banks were off 0.77 percent and financials eased 0.28 percent, but industrials edged up 0.37 percent.
The rand was bid at R7.43/$, from R7.44/$ when the JSE closed on Thursday. Gold was quoted at $1 109.07/oz from $1 114/oz at the JSE's last close, and platinum was at $1 361.50/oz, from $1 347.60/oz at its previous close.
"We are flat but have picked up from our earlier lows. Industrials, particularly MTN, are strong. Anglo American is trading at a twelve-month high and it's pulling the market higher," a trader said.
"Gold and platinum stocks are dragging the market down. Otherwise, it's very quiet."
"Dow futures are up slightly, but there is general profit taking in markets across the world," she said.
Dow Jones Newswire reported that the FTSE 100 traded in a narrow range as investors find comfort in higher Wall Street futures but are wary of putting more cash on the table ahead of eurozone 3Q GDP data at 12:00 SA time.
The index is struggling to crack the 5300 level and it is starting to look a little tired up there, said David Jones, strategist at IG Index.
"It does look vulnerable to a slide from current levels, but at the moment any weakness still looks to be a buying opportunity for the medium term," he added.
The FTSE 100 was last flat, down 0.01 percent.
US stocks are called to open higher on Friday, supported by a weaker dollar, said David Morrison at GFT.
He called the DJIA up 50 points and the S&P 500 up 5 points. Morrison expects the dollar to remain at the forefront of traders' thoughts, particularly as President Obama visits China this weekend.
"No doubt the president will be anxious to discuss global imbalances, the Chinese dollar peg and protectionism," he said.
On the economic calendar, US trade balance and import prices at 15:30 SA time will be watched for direction, as will the University of Michigan consumer sentiment survey at 16:55 SA time.
On the JSE, Anglo American Plc put on R3.24, or 1.05 percent, to R312.35 while BHP Billiton eased 23c to R223.26.
Petrochemicals group Sasol gave up R1.94 to R289.61.
Highveld Steel collected R70c, or 1.07 percent, to R66.20.
AngloGold Ashanti lost R3.95, or 1.20 percent, to R324, Gold Fields weakened R3.49, or 3.22 percent, to R105.01 and Harmony declined R1.71, or 2.17 percent, to R77.26.
Platinum miner Anglo Platinum shed R8.50, or 1.25 percent, to R672.50, Impala Platinum lost R1.78, or 1.04 percent, to R169.72 and Lonmin was off R3.04, or 1.51 percent, to R198.28.
Impala Platinum earlier reported on Friday that higher production from the Zimbabwean operations, increased deliveries to Impala Refining Services (IRS) and changes in the pipeline, as stocks were cleared during the strike action, resulted in a 6 percent increase in gross refined platinum production period on period to 413 000 ounces for the first quarter.
Palladium and rhodium rose by 22 percent and 20 percent respectively. The group said however that at the Impala Lease Area tons milled declined by 26 percent to just under 3 million due to the closure of all mechanised sections following the 14 Shaft incident and the two-week strike during September.
In diversified miners Exxaro (EXX) gave up 1.30 rand, or 1.42 percent, to 90.50 rand.
Among industrials on the JSE, brewer SABMiller edged up 35c to R206, but Remgro was down R1.76, or 1.92 percent, to R89.74 and Tiger Brands shed R3.28, or 2.04 percent, to R157.12.
Banker Standard Bank was down 70c to R96.40 and Nedbank declined R1.05 to R119.90.
African Bank was down 76c, or 2.54 percent, to R29.15. It earlier advised that headline earnings per share for the year ended September are expected to be 10 percent to 12 percent lower than the 252.1c per share reported in the previous financial year.
This is as a result of the increase in the weighted number of shares in issue, the group said in a voluntary trading statement.
Headline earnings however are expected to be at a similar level to the R1.810-billion reported in 2008.
Retailer Pick n Pay weakened 62c, or 1.56 percent, to R39.21 and Lewis gave up 69c, or 1.35 percent, to R50.51, but Clicks collected 53c, or 2.09 percent, to R25.93.
Liberty International added R1.39, or 2.34 percent, to R60.80.
Construction group Murray & Roberts lost R1.15, or 2.04 percent, to R55.10.
Cement manufacturer Pretoria Portland Cement weakened 39c, or 1.18 percent, to R32.61.
Among telecommunications groups, MTN Group firmed R1.75, or 1.48 percent, to R119.75, but Telkom was down R1.35, or 3.20 percent, to R40.90 and Vodacom weakened 75c, or 1.34 percent, to R55.25.
Telkom SA earlier said that it expects headline earnings per share to be 130 percent and 140 percent lower for the six months ended September 30, while normalised HEPS are expected to be 45 percent and 55 percent lower.
Telkom said its HEPS includes the secondary taxation on companies on the special dividend, the compensation expense and the fair value loss on Vodacom shares. - I-Net Bridge
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