Resources lead upside on JSE
June 30, 2009
By Palesa Motloung
Johannesburg - South African stocks edged into the black on Tuesday supported by strong resources and a firm overnight close on Wall Street.
By 9.12am, the JSE all share index had collected 0.86 percent, with resources adding 1.42 percent. Gold counters were 1.12 percent stronger and platinum miners advanced 1.32 percent. Banks gained 1.10 percent, financials collected 0.91 percent and industrials edged up 0.29 percent.
The rand was last bid at R7.75 to the dollar from R7.79 when the JSE closed on Monday. Gold was quoted at $942.09 an ounce from $936.66 at the JSE's last close, and platinum was at $1 202 an ounce, from $1 182 at its previous close.
"We have edged up this morning, the US ended positively last night," a local equities trader said. "Resources are picking up nicely. The rand is very strong and that might hold us back a bit. Locally, the trade balance later on today might surprise and we may see a weaker rand.
"But it looks like we may have a better day today. Commodity prices are higher and US futures are up at the moment. We will get direction from international markets and the economic data later this afternoon," she said.
Dow Jones Newswires reports that US stocks climbed as a spike in energy prices drove Exxon Mobil higher and Ford gained on positive sales news, but Alcoa tumbled after an analyst downgrade.
The Dow Jones Industrial Average added 90.99 points, or 1.08 percent, to 8529.38. The Nasdaq Composite index rose 5.84, or 0.32 percent, to 1844.06. The S&P 500 index climbed 8.33, or 0.91 percent, to 927.23.
Stocks fell last week on continued uncertainty about the economic outlook. On Monday the market seemed to get some help from so-called window dressing, or professional investors tweaking their portfolios before the end of the second quarter.
"Typically, you have people buying before the end of the quarter, so there is support [to the market] because of that," said Todd Leone, a trader at Cowen & Co. Trading is likely to be slow this week because of the long holiday weekend, he said, but investors will turn more of their focus to earnings news in the coming days.
Asian stock markets are broadly higher on Tuesday, taking their cue from gains on Wall Street with energy stocks buoyed by a continued rise in crude oil prices. In Australia, retailing stocks got help from improved profit guidance from David Jones.
Japan's Nikkei ended up 1.8 percent and Hong Kong's Hang Seng had last added 0.7 percent. European stock markets look likely to open under a bit of pressure on Tuesday, as investors weigh whether recent gains will continue into the new quarter.
Back in Johannesburg, Anglo American added R3.07, or 1.32 percent, to R235.67 and BHP Billiton rose R3.78, or 2.12 percent, to R181.78. Sasol advanced R2.90, or 1.09 percent, to R269.50.
Kumba Iron Ore was off R1.94, or 1.04 percent, to R184.06 but ArcelorMittal advanced R1.47, or 1.55 percent, to R96.47.
AngloGold Ashanti collected 90 cents to R295.90, Gold Fields was up R1.99, or 2.05 percent, to R98.89 and Harmony put on R1.50, or 1.80 percent, to R85.
Anglo Platinum added R1.30 to R555.19, Impala Platinum rose R3, or 1.79 percent, to R170.50 and Lonmin firmed R2.14, or 1.38 percent, to R156.74.
In diversified miners African Rainbow was up R1.60, or 1.19 percent, to R135.60. Elsewhere on the JSE, brewer SABMiller was unchanged at R162.40.
Standard Bank rose R1.35, or 1.50 percent, to R91.50, Nedbank collected 70 cents to R97.80 and Absa was up 98 cents to R110.48. Old Mutual edged up 16 cents, or 1.55 percent, to R10.45 and Sanlam strengthened 34 cents, or 1.96 percent, to R17.69.
Media group Naspers added R3.24, or 1.65 percent, to R199.74. It earlier reported that its fully diluted headline earnings per share for the year ended March 2009 were at 819 cents, down 22 percent, from the 1,051 cents reported the previous year.
The group's board recommended that the annual dividend be increased by 15 percent to 207 cents (previously 180 cents) per N ordinary share, and 41 cents (previously 36 cents) per unlisted A ordinary share. Group revenue for the year was at R26.7 billion, up 30 percent from the R20.5 million reported a year ago. Operating profit for the period was at R3.8 billion compared to the R3.9 billion reported before.
Naspers said that the past twelve months evidenced a global economic downturn. It said that each business in the group played the field as it found it and each adapted as fast as possible to these new conditions. Overall, the group's growth was satisfactory, it said.
ElementOne lost 25 cents, or 2.34 percent, to R10.45. The company on Monday said it was likely to delist from the JSE by the end of September. Releasing its annual results, it said that its continuing failure to comply with JSE Listings Requirements meant that it was likely that its listing on the JSE would terminate in due course.
The company said while this was regrettable, it was inevitable and only served to underscore the need to resolve the issues that prevented the distribution of its assets at full or even reasonable value to shareholders as soon as possible.
ElementOne reported that basic and diluted loss per share for the year to end March 2009 was at 226 cents from earnings per share of 4,796 cents the previous year. Profit from operations was at R104 million, down from the R156 million reported the previous year.
ElementOne said its revenue, comprising income from investments, was R110 million and compared with R167 million in the previous year.
Truworths collected 39 cents, or 1.06 percent, to R37.24, Pick n Pay advanced R1.16, or 3.55 percent, to R33.82 and Shoprite rose 80 cents, or 1.50 percent, to R54.
Construction group Group Five was off 45 cents, or 1.34 percent, to R33.05 but Murray & Roberts was up 70 cents, or 1.42 percent, to R49.95. Pretoria Portland Cement collected 32 cents, or 1.12 percent, to R28.82. Packaging group Nampak firmed 61 cents, or 4.18 percent, to R15.21.
MTN group weakened 27 cents to R118.73, but Telkom edged up 12 cents to R36.42 and Vodacom edged up 25 cents to R56.25.
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