The JSE lifted further at noon as cautious optimism emanating out of Europe continued to buoy investors.
|||The JSE lifted further at noon on Tuesday as cautious optimism emanating out of Europe continued to buoy investors.
A local trader said: “Our market is being held back by the rand. There has been a 2% move in the rand within 24 hours”.
He also said the price of copper was being watched. “There has been a 12% rise in the copper price. If the rally holds on copper some buying will be expected in the Anglo's and Billiton's”
By 12:07 local time, the JSE all-share index added 0.67% with gold miners taking up 2.12% while platinum miners gathered 0.68%, and resources improved 0.44%. Banks were 1.33% higher, financials gained 0.88%, and industrials lifted 0.76%.
The rand was unchanged at 7.92 to the dollar from the JSE's close on Monday. Gold traded at US$1,659.58 a troy ounce from US$1,654.91/oz at the JSE's previous close, while platinum was at US$1,552/oz, from US$1,538.50/oz previously.
The trader said that there was also some talk about QE3. “That's what the traders are talking about at the moment. One of the main reasons is that there won't be a fiscal boost next year, so the monetary side will be doing the heavy lifting, while the fiscal side will drag things down.”
Dow Jones Newswires earlier reported that European stocks had posted minor losses on Tuesday, with investor jitters ahead of Wednesday's meeting of eurozone leaders offsetting some strong corporate earnings.
At 12:00 local time, the FTSE 100 index was up 0.24%, however the Paris CAC 40 index had dipped 0.33%.
Uncertainty continues to circle the key EU Summit on Wednesday, as markets look for what might happen in terms of leverage of the European Financial Stability Facility.
However, a raft of European earnings helped to provide some positive news on Tuesday, with most of the releases surprising to the upside.
On the JSE, Anglo American (AGL) lifted R1.70 to R294.19, BHP Billiton (BIL) dropped R1.50 to R249.50, but Sasol (SOL) gathered R1.70 to R366.70.
Among gold shares, AngloGold Ashanti (ANG) profited R7.60 or 2.28% to R341.60, Gold Fields (GFI) gathered R2.80 or 2.20% to R129.80 and Harmony (HAR) rose R1.69 or 1.75% to R98.19.
In platinum stocks, Impala Platinum (IMP) pocketed R1.59 to R174.98, and Lonmin (LON) garnered R1.53 or 1.12% to R138.53.
Exxaro (EXX) was R4.66 or 2.76% richer at R173.80 and Kumba Iron Ore (KIO) was R5.70 to the good at R459.20.
In industrial stocks, Compagnie Richemont (CFR) accumulated 52 cents or 1.18% to R44.71.
Civil engineering and construction group Esorfranki (ESR), on Tuesday reported a headline loss per share of 3.9 cents for the six months ended August from headline earnings per share of 4.1 cents a year ago.
The company, which provides specialist geotechnical services, roads and earthworks, civils and pipeline construction, said the results reflected the adverse impact on the group of a still depressed construction sector. Key performance indicators accordingly declined year on year.
Revenue grew 14.2% to R857.5 million but earnings before interest, depreciation, impairments, amortisation and taxation declined 66.2% to R25.4 million.
Shares in the group dipped 3 cents or 1.96% to R1.50.
In banks and financial services, Nedbank (NED) collected R2.81 or 2.03% to R141.40 and Santam (SNT) profited R2.50 or 1.81% to R141.
Amongst the retailers, Woolies (WHL) lifted 97 cents or 2.54% to R39.17, and The Foschini Group (TFG) rose R2.40 or 2.54% to R97.
Media group Avusa (AVU) declined 35 cents or 1.55% to R22.25. Late on Monday the group said earnings per share and headline earnings per share for the six months to end September would be at least 20% lower than those reported for the six months to September 2010.
The group posted diluted headline earnings per share of 61 cents for the six months ended September 2010. - I-Net Bridge
Source: http://www.iol.co.za/jse-continues-up-on-europe-optimism-1.1164389
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