JSE opens flat, eyes European markets
November 18, 2009
The JSE saw a flat start on Wednesday morning with little direction from eastern markets, with a trader noting that the bourse would have to wait for European markets to see any real moves.
At 9.20am the JSE all share index was flat, up 0.14 percent, with resources edging up 0.29 percent. Platinum and gold producers collected 0.80 percent and 0.53 percent respectively. Banks were up 0.26 percent and financials inched up 0.10 percent, but industrials were flat, easing 0.01 percent.
The rand was bid at R7.44/$, from R7.45/$ when the JSE closed on Tuesday. Gold was quoted at $1 140.82/oz from $1 132.75 at the JSE's last close, and platinum was at $1 450/oz, from $1 454/oz at its previous close.
"We had a bit of a flattish start on the market this morning. The US did manage to recuperate some of its losses and end up. Eastern markets were initially up, but then gave back those gains," the trader said.
"We have already priced in those gains. US futures are slightly negative to flat at the moment. There is little direction. We will have to wait for the European markets to open before we can see any real moves," he said.
Dow Jones Newswire reported that another round of buying in commodities producers, including Exxon Mobil, helped the DJIA close higher for the ninth time in 10 sessions, though Home Depot and Target weighed on consumer stocks and kept the broader stock gains muted.
For Tuesday, the Dow closed up 30.46 points, or 0.29 percent, to 10437.42, marking another closing high for the year and its highest close since October 2 2008.
Helping the index was a round of buying in energy and materials firms after an uptick in commodities prices.
In recent weeks, momentum traders have leaped into oil and metals, which has in turn pushed these two sectors higher.
Gains have also been helped by some global economic data that hinted at rising demand for these products and heightened inflationary concerns. Setting off Wednesday's session, traders will have a near real-time look at inflation, with the consumer price index for October set to be released in the morning.
"Gold and commodities do better than stocks, bonds and real estate in rising inflationary environments," said Gregg Fisher, president of GersteinFisher. "Though CPI is still a lagging indicator, however."
Asian share markets are mixed on Wednesday, as investors were uninspired by a small rise in US stocks on Tuesday.
Japan's Nikkei ended down 0.5 percent and Hong Kong's Hang Seng was last down 0.7 percent.
European bourses are called to open mostly higher, and commodities stocks may pace gainers on Wednesday.
Among equity movers on the JSE, Anglo American Plc collected 50c to R328.50 and BHP Billiton edged up 40c to R232.53.
Petrochemicals group Sasol was up 94c to R295.74.
AngloGold Ashanti added R2.40 to R336.50.
Platinum miner Anglo Platinum rose R8.50, or 1.20 percent, to R718.50 and Lonmin put on R3, or 1.42 percent, to R215.
In diversified miners, African Rainbow firmed R1.02 to R168.02 while Exxaro weakened 99c, or 1.05 percent, to R93.11.
Among industrials on the JSE, brewer SABMiller was up R1.10 to R211, but Bidvest was down R1.04 to R120.69.
Banker Nedbank collected 20c to R117.70 and FirstRand edged up 14c to R17.49.
Sugar group Tongaat Hulett declined R1.24, or 1.24 percent, to R98.86.
Retailer Pick n Pay weakened 71c, or 1.73 percent, to R40.27 but Clicks collected 41c, or 1.62 percent, to R25.75.
Construction group WBHO shed R5.35, or 4.53 percent, to R112.65.
Telecommunications groups, MTN Group edged down 46c to R119.32 and Vodacom weakened 45c to R55.40, but Telkom collected 31c to R40.31.
Reunert was up 94c, or 1.81 percent, to R53.01. The electronics and electrical engineering company earlier reported that its full year diluted headline earnings per share were flat at 646.1c from last year's 648.7c.
Releasing its annual results for the year to end September 2009, Reunert declared a cash dividend of 188c a share. This is lower than last year's dividend of 241c a share.
Revenue declined by 6 percent to R10.3-billion from R10.9-billion and operating profit fell 28% to R1.1-billion from R1.6-billion a year ago.
Headline earnings were unchanged at R1.2-billion while normalised earnings declined by 21 percent to R892-million.
International IT company Dimension Data was barely changed, up 2c to R9.40. It earlier reported revenue of $3.973-billion for the year ended September 2009 from $4.511-billion a year ago. Revenue was 0.4 percent higher in constant currency, it said.
Operating profit was up 25.4 percent in constant currency to $194.4-million. The group's diluted headline earnings per share rose to US7.6c from US6.8c before, while earnings per share amounted to US8.0c from US7.7c. - I-Net Bridge
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