JSE weaker on Chinese data

The JSE fell in line with other markets at noon on Friday, following news out of China that bank reserve requirements will rise later this month.

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The JSE fell in line with other markets at noon on Friday, following news out of China that bank reserve requirements will rise later this month.

By 12:01 local time, the JSE all share index was down 0.53%, with gold miners losing out the most by 2.16%. Resources lost 1.47%, and platinum miners fell 1.29%. Banks were 0.60% down, while financials gave up 0.52%.

Industrials picked up 0.36%.

The rand was trading at 6.85 to the dollar from 6.81 at the JSE's close on Thursday. Gold was quoted at US$1,367.34 a troy ounce from US$1,381.47/oz at the JSE's previous close, while platinum was at $1,805/oz from $1,814.50/oz before.

A local trader says that among factors leading markets down is the announcement by Chinese authorities that they will hike their bank reserve requirements rate by 50 basis points with effect from January 20.

“Our market fell 100 points [following the news] and European markets fell as well,” the trader added.

Dow Jones Newswires reports that European stocks were slightly lower overall early on Friday, led downward by the basic resources sector as commodity prices slipped. However, technology shares were bolstered by strong Intel results late on Thursday, limiting the downside.

US computer-chip giant Intel reported better-than-expected first-quarter revenue and margins, helped by a surge in demand for tech products following the pullback during the recession.

The results bode well for the US earnings season, which began this week, analysts said.

“We are predicting solid results from the fourth-quarter earnings season that may further positively impact investors' sentiment and may continue to boost the risk appetite for equities. We think yesterday's better-than-expected results from Intel confirmed our view,” said Andrea Lazzari, head strategist at Amplify Trading.

However, by 09:15 GMT, the Stoxx Europe 600 index was down 0.6% at 282.27. London's FTSE 100 was down 0.4% at 6,000.88, Frankfurt's DAX fell 0.2% to 7,061.13 and Paris's CAC-40 declined 0.2% to 3,968.778.

On Friday, Asian stock markets were mixed after Wall Street's losses on Thursday and the disappointing US jobless claims data, although the solid results from Intel helped some technology-related stocks. Results from JPMorgan Chase are due at 12:00 GMT on Friday.

Japan's Nikkei Stock Average fell 0.9% but Australia's S&P/ASX 200 gained 0.1% and South Korea's Kospi Composite was up 0.9%. Hong Kong's Hang Seng Index gained 0.2% but China's Shanghai Composite fell 1.3%.

On the JSE, BHP Billiton (BIL) lost 4.62 rand, or 1.69%, to 268.70 rand.

Anglo American (AGL) was down 4.50 rand, or 1.22%, to 363 rand, and Sasol(SOL) was 2.97 rand lower at 351.03 rand.

Anglogold Ashanti (ANG) gave up 7.47 rand or 2.41% to 302.52 rand, and Harmony (HAR) lost 1.51 rand, or 1.93%, to 76.81 rand.

Gold Fields (GFI) shed 2.29 rand, or 1.96%, to 114.37 rand. It was announced that Mvelaphanda Resources (MVL) shareholders have approved the proposed distribution by Mvela to its ordinary shareholders of 22.218 million shares in gold miner Gold Fields (GFI).

The condition precedent has been fulfilled so each participating Mvela Resources ordinary shareholder will receive 0.10197 Gold Fields shares for every Mvela Resources ordinary share held.

Impala Platinum (IMP) was 4.45 rand, or 1.87% weaker at 233.60 rand.

Anglo Platinum (AMS) was down 3.30 rand at 746.70 rand. Lonmin (LON) lost 78 cents to 202.78 rand.

Diversified miner Exxaro (EXX) gave up 2.70 rand or 1.73% to 153.80 rand, and African Rainbow (ARI) shed 2.75 rand, or 1.23%, to 220.75 rand.

Steel producer ArcelorMittal (ACL) climbed 29 cents to 84.49 rand. The group announced that the list price (single all-in price) of all general flat and long steel products would increase between R308 per metric ton (mt) and R388/mt (VAT excluded) for all orders confirmed for delivery from February 1.

Telecommunications group Telkom (TKG) lost 87 cents or 2.35% to 36.13 rand. The group says its acting CEO, Jeffrey Hedberg, has decided not to renew his contract at the end of March this year, company spokesman Pynee Chetty said on Friday. No reason was given for Hedberg's decision.

MTN Group (MTN) added 2.19 rand, or 1.68%, to 132.40 rand, and Vodacom (VOD) edged up 75 cents, or 1.02%, to 74.20 rand.

British American Tobacco (BTI) lost 1.59 rand to 252.19 rand. Bidvest (BVT) was up 50 cents to 159.78 rand.

In banks, Nedbank gave up 2.25 rand, or 1.66%, to 133.15 rand, and ABIL (ABL) was down 44 cents to 39.81 rand. ABSA (ASA) shed 1.23 rand to 140.77 rand.

Retailers saw Truworths (TRU) 96 cents, or 1.39% stronger at 70.26 rand.

The retailer says it expects that both basic and headline earnings per share for the first 26 weeks - from June 28 until December 26 2010 - of the financial year to be between 17% and 20% higher, relative to the corresponding period in the 2010 financial year.

Spar (SPP) added 29 cents to 95.30 rand, while Massmart (MSM) gained eight cents to 145.84 rand.

Naspers (NPN) was 8.62 rand, or 2.22%, firmer at 397.32 rand.

South African pharmaceutical company Aspen Pharmacare (APN) added 1.27 rand, or 1.44%, to 89.64 rand. The company says that all conditions precedent had been met for it to acquire the pharmaceutical business of

Australian-based Sigma Pharmaceuticals in a deal worth 6.1 billion rand.

The acquisition was approved following the extraordinary meeting of Sigma shareholders, held earlier on Friday. - I-Net Bridge

Source: http://www.iol.co.za/jse-weaker-on-chinese-data-1.1012092

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