World markets, metals lift JSE
November 9, 2009
South African stocks opened in the black on Monday after taking direction from higher Eastern markets, which gained momentum in the wake of a positive close on Wall Street, and also higher resources prices.
At 9.26am the JSE all share index had gained 1.11 percent, with resources up 1.64 percent, gold miners adding 2.24 percent and platinum producers collecting 0.98 percent. Banks advanced 1.31 percent, financials rose 1.00 percent and industrials strengthened 0.56 percent.
The rand was bid at R7.46/$ from R7.50/$ when the JSE closed on Friday. Gold was quoted at $1 106.90/oz from $1 096.60/oz at the JSE's last close, and platinum was at $1 358/oz, from $1 340/oz at its previous close.
"We are up on the back of Eastern markets. The dollar has weakened and that supports commodity prices, which spilled over into the resource sector," a local trader said.
"Resources are also lifting us higher. The gold index in particular is up on the higher gold price."
"We are up on world markets. Since we are a commodity-based economy, the weak dollar is supporting commodity prices and resources are leading us higher," he said.
Dow Jones Newswire reported that General Electric and Starbucks paced a move higher for stocks on Friday, though a morning report showing US unemployment broke above 10 percent last month weighed on commodities prices and kept any stock gains muted.
For Friday, the DJIA gained 17.46 points, or 0.17 percent, to 10 023.42, marking its third-consecutive session in the green. With the move, the index snapped a two-week losing streak. The blue-chip measure climbed 310.69, or 3.2 percent, this week.
Gains in the index were led by General Electric, up 90 cents, or 6.2 percent, to 15.33, as the industrial conglomerate got a boost from a couple of analyst upgrades of the company to outperform and reports of progress in GE's efforts to sell its NBC Universal unit to Comcast.
Still, the stock and commodities markets remained under pressure as the Labour Department said US unemployment rose by more than expected in October and employers cut more jobs than forecast.
While a positive revision for September's nonfarms payrolls helped some of the market's concern, the report's overall tone revived many of the economic fears that have been prevalent among traders for months.
Following the report, commodities prices plummeted, with crude oil dropping 2.75 percent. In turn, this pushed energy companies into the red. Pacing the decline in the sector, Sunoco lost 2.91, or 9.4 percent, to 28.21, after the oil company swung to a third-quarter loss on a host of charges and weak demand for oil-based fuels and chemicals.
Asian shares traded mostly higher on Monday after modest gains on Wall Street Friday.
The Nikkei ended up 0.2 percent and the Hang Seng had last added up 1.1 percent.
European bourses are likely to start higher as investors view recent labour market data in the US and Europe as evidence that central banks and governments will keep their stimulative stances for some time.
On the JSE, Anglo American Plc added R4.48, or 1.50 percent, to R302.48 and BHP Billiton was up R3.88, or 1.82 percent, to R216.70.
Petrochemicals group Sasol gained R3.92, or 1.34 percent, to R295.92.
Paper group Sappi put on 52c, or 1.82 percent, to R29.17. Earlier Sappi reported a full year loss of $0.37 a share compared to earnings per share of $0.28 the previous year.
The company's full year sales dropped 8 percent to $5.37-billion in the year to end September 2009 from $5.86-billion a year ago. A full year operating loss of $73-million was reported against last year's operating profit of $314-million.
Highveld Steel rose R3.13, or 5.12 percent, to R64.30 and Kumba Iron Ore firmed R4.02, or 1.75 percent, to R234.02.
AngloGold Ashanti advanced R5.49, or 1.76 percent, to R317.50, Gold Fields was R2.97, or 2.80 percent higher, at R108.99 and Harmony collected R1.02, or 1.24 percent, to R83.21.
Platinum miner Anglo Platinum firmed R7.89, or 1.17 percent, to R682.89, Impala Platinum rose R1.76, or 1.03 percent, to R172.36 and Lonmin added R5.26, or 2.70 percent, to R200.
In diversified miners, African Rainbow moved R1.80, or 1.16 percent, higher to R156.80 and Exxaro put on R1.40, or 1.62 percent, to R87.80.
Elsewhere on the JSE, SABMiller strengthened R1.53 to R207.01.
Banker Standard Bank was up R1.30, or 1.40 percent, to R93.91, Nedbank rose R1.01 to R114.01, Absa added R1.59, or 1.32 percent, to R121.60 and FirstRand collected 24c, or 1.47 percent, to R16.59.
Financial services group Old Mutual put on 20c, or 1.51 percent, to R13.46.
Sugar group Illovo weakened 70c, or 2.07 percent, to R33.05.
Retailer Lewis edged up 27c to R50.02. It earlier reported that reported a 3.9 percent fall in headline earnings to 290.5c for the six months to end September 2009. Net profit attributable to ordinary shareholders dipped 3.3 percent to R261.3-million and the company declared an interim dividend of 144c a share.
The company said the improving trend in revenue growth experienced in the latter stages of the 2009 financial year had continued, with revenue for the six-month period increasing by 7.9 percent to R1.9-billion and merchandise sales growing by 6.8 percent to R951-million. Operating profit increased by 4.3 percent to R424.2-million.
JD Group collected 45c, or 1.14 percent, to 39.95 rand and Foschini was up 70c, or 1.22 percent, to R58.
Construction group Aveng was up 85c, or 2.14 percent, to R40.65 and WBHO gained R4.50, or 3.96 percent, to R118.
Telecommunications groups, MTN Group rose R1.21, or 1.04 percent, to R117.21 and Vodacom edged up 42c to R52.80.
Vodacom earlier announced that announced headline earnings per share declined 12.4 percent to 219c for the six months to end September 2009, from 250c earlier. Earnings per share dropped to 4c, from 248c previously.
Vodacom declared an interim dividend of 110c per share. Revenue rose 9.9 percent to R28.7-billion, largely due to the inclusion of Gateway which contributed 5.3 percent to group revenue the 16.5 percent growth in mobile customers to 41.6 million and the 30.1 percent increase in mobile data revenue to R2.031-billion.
Revenue from the South African operations of R24.37-billion was 6.8 percent higher, contributing 85 percent to group revenue.
Investment holdings company with interests in the construction and infrastructure sectors, Raubex collected 30c, or 1.25 percent, to R24.30. It earlier reported a 10 percent increase in first half diluted headline earnings per share to 157.4c from 142.9c in the comparative period a year ago.
The company said profit climbed 10 percent to R295.3-million in the six months to end August 2009 from R268.2-million last year.
An interim dividend of 35c a share has been declared. Revenue increased 1.8 percent to R2.3-billion and operating profit increased 10.6 percent to R440.2-million from the corresponding prior period.
Earnings per share increased 10.4 percent to 161.3c. Group operating margin increased 9 percent from 17.8 percent to 19.4 percent compared to the corresponding prior year period.
Cadiz Holdings was unchanged at R3. Cadiz earlier reported a 102 percent rise in diluted headline earnings per share to 17.2c for the six months ended September from 8.5c a year ago. The group's operating profit was up 95 percent to R48.5-million. - I-Net Bridge
|
|
