JSE on the front foot in light trade

The JSE firmed in midday trade, albeit in light trade following a futures close-out which generated large volumes.

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The JSE firmed in midday trade on Friday, albeit in light trade following a futures close-out on Thursday which generated large volumes.

Resources led the way, with banking stocks in negative territory amid some profit taking.

A local trader noted thin volumes, following a futures close-out on Thursday. “There is not a lot of movement today, but resources appear to be supporting the market's gains. Financials are struggling a little bit, possibly as a result of some profit taking with FirstRand recently reporting some good results, among others.”

He said that eyes would turn to the US in the afternoon session, to drive further direction for the remainder of the session.

By 12:00 local time, the JSE all-share index added 0.28% with resources collecting 0.68%, while gold gathered 0.56% and Platinum miners were a tad firmer (0.06%).

Banks declined 0.82%, financials dipped 0.24%, but industrials gained 0.15%.

The rand was bid at 7.38 to the dollar, from 7.41 at the JSE's close on Thursday. Gold was trading at US$1,776.51 a troy ounce from US$1,776.18 at the JSE's previous close, while platinum was at US$1,804.50/oz, from US$1,783/oz previously.

Dow Jones Newswires reported that US stock markets were expected to open lower on Friday, as investors reassessed their initial reaction to Thursday's news of concerted central bank action to provide US dollar liquidity to Europe's troubled banks, said GFT.

“The first reaction was positive, but now there is a feeling that the coordinated move highlights just how serious the European banking crisis has become,” it added.

GFT called the DJIA down 50 points at 11,378 points. Attention would turn to Friday's economic agenda, which included Treasury international capital flows data at 13:00 GMT and the University of Michigan confidence report at 1355 GMT.

European stocks edged higher on Friday amid cautious hope that the meeting of European finance ministers in Poland may result in some more decisive action in tackling the European debt crisis.

Spanish Finance Minister Elena Salgado on Friday said the main goal of the meeting of finance ministers today and Saturday will be to “reinforce” efforts to calm market tensions, and ministers will be “trying to reinforce the mechanisms that we have to fight against this uncertainty in markets.”

Salgado said she hopes to see a “clear response” to the situation in Greece.

On the JSE, Anglo American (AGL) added R2.41 to R294.91, BHP Billiton (BIL) gained R2.75 or 1.18% to R235.75 and Sasol (SOL) improved a mere 22 cents to R343.20.

Among gold shares, AngloGold Ashanti (ANG) moved R2.30 higher to R339.50, and Harmony (HAR) gained 98 cents or 1.05% to R93.99.

In platinum stocks, Amplats (AMS) gained R2.00 to R562, Northam (NHM) however, declined by 42 cents or 1.19% to R35, but Aquarius (AQP) advanced R1.22 or 4.71% to R27.10.

Among diversified miners, Assore (ASR) lost R2.75 or 1.24% to R219.50, while Kumba Iron Ore (KIO) dropped R6.55 or 1.36% to R474.49.

Industrials saw British American Tobacco (BTI) pocket R1.59 to R325.17.

ICT group Altron (ATN) gathered 50 cents or 1.92% to R26.50.

ICT company Pinnacle Technology Holdings (PNC) on Friday reported a 45% rise in headline earnings per share to 117.7 cents for the year ended June from 81.3 cents a year ago. Earnings per share were up 58% to 121 cents.

The Board has proposed a dividend of 23 cents per share, up from 2010's 16 cents.

Revenue was 57% higher at 4.96 billion rand, of which 24% came from organic growth in the existing group and 33% due to the acquisition and incorporation of the Axiz Technology Group and Centrafin. Shares in the group rose 39 cents or 4.53% to R8.99.

In banking stocks Nedbank (NED) shipped R1.57 or 1.13% to R137.43, but Santam (SNT) grew R1.98 or 1.46% to R137.49.

Construction company Group Five (GRF) gained R1.03 or 3.97% to R26.99.

Media group Naspers (NPN) landed R3.96 or 1.14% to R352.71.

Distribution and Warehousing Network (DAWN, DAW) on Friday reported a 64% decline in diluted headline earnings per share to 16.3 cents for the year ended June from 45.6 cents a year, as the downturn in the economy had a material impact on the company's results.

Earnings per share was a loss of 13 cents compared to a profit of 54 cents a year ago.

Revenue increased by 4.8% to R3.8 billion, with organic growth amounting to 2.5% despite a volume decrease of 1%. Operating profit, before the impact of impairments and once-off non-operational write-offs, decreased by 49% to R102 million. The group's shares were priced at R4.20. - I-Net Bridge

Source: http://www.iol.co.za/jse-on-the-front-foot-in-light-trade-1.1139135

Niclas Alexandersson Lee Bowyer Green politics Television Savings Yorkshire