Europe lifts mkts, JSE up over 3%

The JSE ended over 3% higher in what a local equities dealer referred to as a great day on the markets.

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The JSE ended over 3% higher on Tuesday in what a local equities dealer referred to as a great day on the markets. Hopes that European authorities would soon announce a plan to solve the debt challenges was boosting market sentiment worldwide.

The trader noted that optimism for “additional and more substantial commitments” to the eurozone debt problems was improving market sentiment.

He said there had also been some continuation of risk appetite out of the US, while locally, the rand had “strengthened considerably”.

By 17:00 local time, the JSE all-share index was 3.48% higher at 30,752.40 points, with resources jumping 4.46%, platinum miners lifting 3.66%, and banks adding 3.63%. Industrials were 3.04% in the black, while financials added 2.90%.

Gold stocks however fell 0.68%.

The rand was bid at 7.79 to the dollar, from 8.06 the JSE's close on Monday. Gold was higher at US$1,661.56 a troy ounce from US$1,604.45 at the JSE's previous close, while platinum was at US$1,574/oz, from US$1,542/oz previously.

Dow Jones Newswires reported that US stocks rose sharply higher on the back of strong gains in overseas markets, as continued hopes for action to stem the eurozone debt crisis fuelled investor optimism.

The Dow Jones Industrial Average surged 247 points, or 2.2%, to 11,291, putting the blue-chip index on pace for a third straight day of gains.

The Standard & Poor's 500-stock index rallied 26 points, or 2.2%, to 1,189, and the technology-oriented Nasdaq Composite rose 46 points, or 1.8%, to 2,562.

The action follows sharp gains in overseas markets amid reports of a potential expansion of the European Financial Stability Facility as well as plans for the European Union to aggressively recapitalise its banks.

In the US, fears of a potential government shutdown were assuaged after a deadlock on budget talks was broken, leading the Senate to approve of a bill late on Monday to fund the government through to November 18. The House is likely to approve the bill as well.

On the JSE, Anglo American (AGL) surged R16.85 or 6.02% to R296.85, BHP Billiton (BIL) lifted R12.99 or 6% to R229.49, and Sasol (SOL) moved R13.75 or 4.24% higher to R337.80.

Among gold shares, Anglogold Ashanti (ANG) lost R2.70 to R346.80, while Harmony (HAR) gained 7 cents to R95.75. Gold Fields (GFI) was down R1.15 to R127.25.

DRD Gold (DRD) rose 3 cents to R4.13. The miner announced on Tuesday that the Business Rescue Practitioner overseeing business rescue proceedings at its 74%-owned Blyvooruitzicht Gold Mining Company Limited (Blyvoor) has given notice of Blyvoor's intention to enter a 60-day consensus-seeking process in terms of Section 189 (3) of the Labour Relations Act with the National Union of Mineworkers and UASA to consider reducing employee numbers by approximately 500 people.

In platinum stocks, Amplats (AMS) was R24.21 or 4.40% firmer at R574.20, Impala Platinum (IMP) rose R5.78 or 3.57% to R167.58. But Aquarius (AQP) shed 40 cents or 1.67% to R23.60.

Among diversified miners, Exxaro (EXX) jumped R11.38 or 6.49% to R186.60 and Kumba Iron Ore (KIO) climbed R33.19 or 7.66% to R466.69. African Rainbow Minerals (ARI) garnered R8.03 or 4.56% to R184.10.

In Industrial stocks, SAB (SAB) was R5.42 or 2.08% higher at R265.42, Bidvest (BVT) added R5.83 or 4.06% to R149.49, and Imperial (IPL) rose R4.39 or 4.12% to R111.04.

Mobile operator MTN (MTN) was up R6.53 or 5% to R137.14, and Vodacom (VOD) gained R4.84 or 5.55% to R92.04.

Technology firm Datacentrix Holdings (DCT) said it expected earnings per share and headline earnings per share for the six months ending August to be between 0% and 10% lower compared with the previous corresponding period. The interim results are expected on October 4.

The share was trading four cents higher at R4.22.

Least-cost routing company, TeleMasters Holdings (TLM) said it hoped to complete its de-listing from the Johannesburg Stock Exchange (JSE) by early 2012. The company was down three cents or 2.07% to R1.42.

In banking, FirstRand (FSR) added 74 cents or 3.77% to R20.39, while Standard Bank (SBK) lifted R3.30 or 3.57% to R95.76, and Nedbank (NED) was up R6.60 or 5% to R138.55.

In retailers, Mr Price (MPC) gained R2.87 or 4.35% to R68.80, and Holdsport (HSP) rose R1.41 or 4.69% to R31.48. Holdsport (HSP), which runs the Sportsmans Warehouse and Outdoor Warehouse stores, on Tuesday said headline earnings per share increased by 30.4% to 141.7 cents for the half-year ended August 31. Core headline earnings per share increased by 22.3% to 159.2 cents.

Media group Naspers (NPN) surged R18.05 or 5.26% to R361. - I-Net Bridge

Source: http://www.iol.co.za/europe-lifts-mkts-jse-up-over-3-1.1145807

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