Saturday, October 15, 2011

JSE gains steam as miners lead

The JSE was decidedly firmer at noon, as mining stocks led the upside. The local exchange started the session on a tentative note, with no real direction.

|||

The JSE was decidedly firmer at noon on Friday, as mining stocks led the upside. The local exchange started the session on a tentative note, with no real direction.

Ian Cruickshanks, market watcher at Nedbank Capital, said market players would turn their attention to the two-day Group of 20 finance ministers and central bankers meeting, which starts in France today.

By 12:11 local time, the JSE all-share index took was up 1.04% to 31,155.42 points. Gold picked up 1.60%, while platinum miners gained 1.53%. Resources rallied 2.20%, financials edged up 0.36%, banks were flat (-0.02% and industrials lifted 0.43%.

The rand was trading at 7.87 to the dollar, from 7.90 at the JSE's close on Thursday. Gold traded at US$1,675.95 a troy ounce from US$1,662.03/oz at the JSE's previous close, while platinum was at US$1,546.20/oz, from US$1,532.70/oz previously.

“It has been a fairly positive week on balance for the equity markets, but my main concern is that the rally was on low volumes, which raises the question of sustainability,” said Cruickshanks.

Dow Jones Newswires reported that European stocks oscillated between small gains and losses on Friday.

Jean-Claude Juncker, head of the eurozone finance ministers and prime minister of Luxembourg, said Europe must recapitalise its banks where needed, but banks must be assessed individually. His comments followed those of Deutsche Bank chief executive Josef Ackermann, who cautioned on Thursday that a credit crunch could occur if Europe's leaders impose higher capital level requirements for banks and big haircuts on sovereign debt.

Similarly, many analysts warned the recapitalisation of banks, as proposed by European Commission President Jose Manuel Barroso, may not be enough to stem contagion risks in Europe.

London's FTSE 100 was 1.18% firmer at 5,466.93 points.

Earlier, Asian stock markets were mostly lower Friday as a modest slowing in Chinese inflation failed to kindle a rebound amid fresh concerns over regional economic growth and euro-zone debt.

On the JSE, Anglo American (AGL) was up R6.62 or 2.30% to R294.27, BHP Billiton (BIL) gained R6.70 or 2.85% to R242, and Sasol (SOL) picked up R4.49 or 1.30% to R349.48.

Among gold shares, Goldfields (GFI) was up R2.28 or 1.90% to R122.27, and AngloGold Ashanti (ANG) secured R4.53 or 1.40% to R328.98.

Impala Platinum (IMP) added R4.37 or 2.66% to R168.94, Lonmin (LON) was R3.49 or 2.60% firmer at R137.49.

Among other miners, ArceloMittal (ACL) moved 87 cents or 1.38% higher to R63.91, and Kumba Iron Iron (KIO) was up R12.48 or 2.75% to R466.46.

In Industrial stocks, Barloworld (BAW) garnered R2.25 or 3.57% to R65.25, while Richemont (CFR) rose 68 cents or 1.66% to R41.73.

Among telecoms stocks, MTN (MTN) was down 19 cents to R133.31, but Telkom rallied R1.95 or 6.07% to R34.10. Africa's largest integrated communications company said it was in talks with South Korea's KT Corporation that could result in the sale of a 20% stake.

Telkom said the discussions regarding a potential strategic venture would also result in the two parties entering into long-term agreements to formalise the relationship and identified areas of mutual strategic and business cooperation. - I-Net Bridge

Source: http://www.iol.co.za/jse-gains-steam-as-miners-lead-1.1157600

Tottenham Hotspur Mark Bright Madeleine McCann Occupational pensions Stoke City Strictly Come Dancing

No comments:

Post a Comment