Rudderless JSE ends in the red

The JSE ended marginally in the red on Thursday, lacking any clear direction.

|||

The JSE ended marginally in the red on Thursday, lacking any clear direction.

A trader said that the local bourse largely shrugged off slightly worse than expected US economic data. "There were no strong moves today to provide clear direction," he said.

At the close, the JSE all-share index was down 0.17%, with resources sliding 0.62% and platinum miners falling 0.14%. Gold counters advanced 1.20%. Banks rose slightly, by 0.24%, financials gained 0.25%, and industrials picked up 0.10%.

The rand was trading at 7.21 to the dollar from 7.24 at the JSE's close on Wednesday. Gold was quoted at US$1,381.27 a troy ounce from US$1,370.70/oz at the JSE's previous close, while platinum was at $1,832.50/oz from $1,826.50 before.

Dow Jones Newswires reported that stocks fell modestly after jobless claims rose more than expected last week and separate data showed that US consumer prices continued to rise in January.

Besides the data, investors kept a close eye on tensions in Libya and Bahrain and a standoff between Iran and Israel over the Suez Canal, three geopolitical factors that were poised to weigh on investor sentiment.

The labour market remained sluggish despite the economy's improvement, with initial jobless claims increasing by 25,000 to 410,000 in the week ended February 12, the US Labour Department said on Thursday in its weekly report. Economists surveyed by Dow Jones Newswires had expected claims would rise last week by 17,000 to 400,000. The previous week's figures were revised to 385,000 from 383,000.

Meanwhile, the Labour Department also said the seasonally adjusted consumer price index last month increased by 0.4% from December, but underlying inflation, which excludes volatile energy and food prices, rose by 0.2%.

Even though both numbers missed expectations, neither the worse-than-expected reading on jobs nor the somewhat higher inflation figures were likely to change investors' overall positive outlook, Timothy Harder, chief investment officer at Peak Capital Investment Services said.

"They both signal that the economy is getting healthier in the bigger picture," Harder said.

On the JSE, Anglo American (AGL) slid 4.88 rand or 1.26% to 381.07 rand, BHP Billiton (BIL) fell 3.10 rand or 1.08% to 284.15 rand, and Sasol (SOL) was down 90 cents at 365.00 rand.

Among gold miners, Anglogold Ashanti (ANG) advanced 3.65 rand or 1.10% to 335.95 rand.

The gold miner on Thursday reported production of 1.148 million ounces (Moz) at a total cash cost of US$672 per ounce (oz) for the three months ended December 2010 compared with 1.162Moz at US$643/oz for the previous quarter. Guidance for the December quarter had been for 1.14Moz at US$675/oz assuming an exchange rate of 6.75 rand to the dollar.

For the full year, production was 4.25Moz at a total cash cost of US$638/oz. AngloGold Ashanti posted adjusted headline earnings of US$294 million during the fourth quarter after its operations in SA, Argentina and Guinea posted strong production results and elimination of the company's hedge book in October boosted cash flow.

Gold Fields (GFI) picked up 1.72 rand or 1.45% to 120.53 rand.

Impala Platinum (AMP) fell 50 cents to 213.00 rand after it reported a 6% rise in gross platinum production to 952,000oz for the six months ended December.

It reported diluted headline earnings per share of 344 cents compared with 212 cents a year ago, and declared an interim dividend of 150 cents per share. Basic headline earnings improved by 63% to 345 cents per share from 212 cents. The company said a key feature in earnings growth was the increase in revenue, which was up by 38% to 15.3 billion rand as a result of higher sales volumes (1.4 billion rand) and metal prices (4.0 billion rand).

Metals miner Assore (ASR) declined 2.50 rand or 1.17% to 211.10 rand.

Among industrials, Barloworld (BAW) garnered 1.55 rand or 2.15% to 73.55 rand, but SABMiller (SAB) lost 3.25 rand or 1.32% to 243.74% rand.

Mobile phone operator Vodacom (VOD) fell 1.00 rand or 1.35% to 73.00 rand.

Banking group ABSA (ASA) firmed 1.40 rand or 1.07% to 132.00 rand and financial services company Old Mutual (OML) rose 19 cents or 1.21% to 15.84 rand.

Retailer Woolworths Holdings (WHL) rallied 91 cents or 3.70% to 25.51 rand after reporting a 25.8% rise in adjusted headline earning per share to 100.8 cents for the 26 weeks ended December 2010 from 80.1 cents previously.

The group's diluted earnings per share rose to 96.6 cents for the period, from 83.4 cents.

An interim dividend of 50.5 cents was declared from 38 cents in 2009. Revenue was up 9.4% to 12.7 billion rand and operating profit was 20.4% higher at 1.1 billion rand.

Other retailers in positive territory included Truworths (TRU), which gained 1.72 rand or 2.73% to 64.82 rand, and Spar (SPP), which was up 1.69 rand or 1.84% at 93.69 rand.

Tile and sanitaryware retailer Italtile (ITE) was flat at 4.10 rand. The company on Thursday reported a 2% decline in diluted headline earnings per share to 17.5 cents for the six months ended December 2010 from 17.9 cents previously. Adjusted HEPS increased 13% to 17.6 cents.

The group's system-wide turnover was 10% higher at 1.59 billion rand, while group-owned stores grew revenue 11.4% to 771 million rand and franchised stores improved turnover 9.4% to 814 million rand. Real organic growth, excluding new store turnover contribution of 1.0% and price deflation of 0.1%, equates to 8.9%.

Sovereign (SOV) plunged 50 cents or 8.33% to 5.50 rand and Rainbow (RBW) was flat at 17.50 rand. - I-Net Bridge

Source: http://www.iol.co.za/rudderless-jse-ends-in-the-red-1.1028170

Children Liverpool Manchester United Alliance & Leicester Dubai Roy Hodgson