JSE positive at noon, tracks Europe

The JSE continued to trade positively at noon, trailing Europe, which has been lifted by comments from the G20.

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The JSE continued to trade positively at noon, trailing Europe, which has been lifted by comments from the G20.

A local trader said that Europe's debt crisis was again dominating the swing of markets, but investors were optimistic after the G20 made comments to endorse part of the Greek bailout plan.

The trader said high precious metal prices were also helping the market out. With the gold price up, gold miners were leading the charge on the JSE.

By 11:56 local time, the JSE all-share index was up 0.89% to 31,402.07 points. Gold lifted 3.29%, while platinum miners gained 1.72% and resources captured 1.35%. Financials took up 0.67%, industrials collected 0.58% and banks edged up 0.22%.

The rand was bid at 7.84 to the dollar, from 7.85 at the JSE's close on Friday. Gold traded at US$1,687.36 a troy ounce from US$1,671.60/oz at the JSE's previous close, while platinum was at US$1,577.50/oz, from US$1,551.70/oz previously.

Dow Jones Newswires reported that European stock markets were in the black on Monday, but off earlier highs, and the euro fell against the dollar, following some downbeat comments by European officials and as investors reassessed the Group of 20 (G20) industrial and developing nations' pledge to tackle the eurozone debt crisis.

Over the weekend, G20 finance ministers promised to ensure banks were adequately capitalised and have sufficient access to funding, calling for a “comprehensive plan” to tackle the European debt crisis to be announced at the European Union summit next week.

As a result, stocks got off to a sharply higher start, but regional indices soon came off highs, after German Finance Minister Wolfgang Schaeuble said the upcoming European Union summit won't present the solution to the eurozone debt crisis. German Chancellor Angela Merkel soured the mood further, by saying that “the dream of resolving all problems at the EU summit” was impossible.

US stock-index futures indicated a slightly higher open on Wall Street.

In Asia, markets responded strongly on Monday to the G20 meeting over the weekend.

On the JSE, Anglo American (AGL) was R2.50 better off at R297.99, Sasol (SOL) gained R2.30 to R351.80, and BHP Billiton (BIL) lifted R2.23 to R244.50.

Among gold shares, AngloGold Ashanti (ANG) jumped up R10.83 or 3.30% to R339.33, GoldFields (GFI) pocketed R4.34 or 3.65% to R123.35, and Harmony (HAR) garnered R2.61 or 2.72% to R98.51.

Gold One International (GDO), the dual-listed Australian and South African gold company, on Monday reported a 23% increase in quarterly production to 35,128 ounces - which exceeds the company's guidance of 34,000 ounces.

This brings year-to-date production to 89,827 ounces and means the company is on track to meet its production target of 120,000 ounces for 2011. The group's shares continued to trade relatively flat, adding two cents to R4.29.

In platinum stocks, Amplats (AMS) rose R4.99 to R557, Impala Platinum (IMP) edged up R3.66 or 2.16% to R173.17, and Lonmin (LON) gathered R2.59 or 1.90% to R138.64.

Among other miners, Kumba Iron Ore (KIO) added R5.64 or 1.18% to R483.82, Exxaro (EXX) profited R6.30 or 3.56% to R183.40, and African Rainbow (ARI) grabbed R3.50 or 1.94% to R183.50.

Assore (ASR) gained R3.94 or 1.98% to R202.95, and steel group Arcelormittal (ACL) lifted R1.42 or 2.25% to R64.65.

In industrial stocks, SAB (SAB) declined R2.95 or 1.05% to R279.17 and Remgro (REM) gathered R1.38 to R114.63.

In the telecoms sector, Vodacom (VOD) improved R2.30 or 2.60% to R90.82, and MTN Group (MTN) increased R2.80 or 2.13% to R134.

Retailers saw Truworths (TRU) rise R1.26 or 1.75% to R73.45 and Mr Price (MPC) take up R1.62 or 2.30% to R72.02.

AltX-listed Calgro M3 Holdings (CGR) announced on Monday that its headline earnings per share for the six months ended August 31 jumped 372% to 17.03 cents from 3.61 cents a year ago.

Revenue was reported as being up 117% from R96.2 million to R209 million.

Net cash and cash equivalents were up 92% from R10.9 million to R20.9 million.

Operating profit came in at R17.189 million from R6.025 million.

Its shares were 23.59% or 46 cents weaker at R1.49, which the trader attributed to a lack of volume in trade.

Media group Naspers (NPN) was R3.74 firmer at R363.69, but Avusa (AVU) surrendered 75 cents or 3.16% to R23. - I-Net Bridge

Source: http://www.iol.co.za/jse-positive-at-noon-tracks-europe-1.1158780

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