JSE flat after late recovery

The JSE ended a fraction in the red following jittery trade as investors continued to take a dim view of the global economy, this time led by poor PMI data out of China.

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The JSE ended Friday a fraction in the red following jittery trade as investors continued to take a dim view of the global economy, this time led by poor PMI data out of China.

The local bourse tried to fight its way back into positive territory late on having shed 200 points in lunchtime trade.

By 17:00 local time, the JSE all-share index was down 0.05%, led by a 0.30% drop in resources. Platinum stocks however, added 0.10%, and gold stocks gained 4.29%.

Banks claimed 0.35%, financials picked up 0.25%, but industrials gave up 0.09%.

The rand was bid at 8.03 to the dollar, from 7.97 at the JSE's close on Thursday. Gold traded at US$1,609.87 a troy ounce from US$1,618.86/oz at the JSE's previous close, while platinum was at US$1,501.50/oz, from US$1,541.50/oz previously.

A local dealer highlighted jittery trade action at month and quarter end, but refuted the idea that window dressing had any major impact on the day as investors continued to mull over fundamental and recurring economic woes rather, while also digesting newer data including PMI stats out of China which showed the country's manufacturing activity continued to fall slightly in September.

He noted a discord in recent days between the local bourse and Wall Street in particular. The JSE did recover somewhat from the losses it had incurred by midday, but could not drag itself out of the red by close as global sentiment continued to weigh.

Dow Jones Newswires reported that US stocks fell Friday but were off session lows after a mixed batch of economic data and some favourable economic commentary by Berkshire Hathaway's Warren Buffett.

Buffett said on CNBC that Berkshire had already begun a closely watched stock-buyback program, and complimented President Obama's efforts to jump-start the US economy. The Dow shipped 113 points to 11,040 in morning trade.

In economic data, Americans' income fell for the first time in nearly two years during August, the Commerce Department reported Friday, another sign of the US consumer's continued difficulties. But the Thomson Reuters/University of Michigan consumer sentiment index showed a brighter view on the economy at the end of September, while a survey of Chicago-area purchasing managers was better than economists expected.

“The market is putting a bow on what was an absolutely awful quarter,” said Burt White, chief investment officer at LPL Financial in Boston, noting that Friday ends what by some measurements was stocks' worst period since the financial crisis in late 2008. “Sentiment is awful, even though the underlying economic conditions aren't nearly as bad.”

On the JSE, Anglo American (AGL) lost R7.09 or 2.51% to R275.01, BHP Billiton (BIL) was down R2.75 or 1.27% to R214.25, but Sasol (SOL) moved R5.32 or 1.61% higher to R334.82.

Among gold shares, Anglogold Ashanti (ANG) helped itself to R14.10 or 4.34% to R338.90, while Harmony (HAR) added R4.75 or 5.24% to R95.35. Gold Fields (GFI) pocketed R4.56 or 3.79% to R124.86.

In platinum stocks, Anglo American Platinum (AMS) was R1.00 weaker at R554, Lonmin (LON) shed R1.60 or 1.20% to R131.40, but Aquarius (AQP) added R1.30 or 5.63% to R24.40.

Among diversified miners, Exxaro (EXX) surrendered R8.44 or 4.72% to R170.50 and Kumba Iron Ore (KIO) shed R4.50 or 1.04% to R426.88.

African Rainbow (ARI) subsided R2.43 or 1.38% to R173.50, along with Assore (ASR), off R11 or 5.29% to R197.

Sappi (SAP) shipped 85 cents or 3.44% to R23.85, and packaging group Astrapak (APK) was unchanged at R7.80. On Friday the group reported a 3.9% rise in fully diluted headline earnings per share to 24 cents for the six months ended August 2011, from 23.1 cents previously as strikes and industrial action weighed.

Astrapak also pointed to a consumer economy under pressure, adding that demand had also softened in a number of markets served by the group.

“Faced with these challenges customers have continued to exert pressure on pricing and competition among converters has been fierce,” it said.

Its fully diluted earnings per share from continuing operations was flat at 23.8 cents, from 23.4 cents in 2010.

Astrapak reported turnover declined to R1.30 billion from R1.35 billion mainly as a result of a 5.5% decline in volumes, which could largely be attributed to the industrial action during the month of July 2011.

Industrial stocks profited, with British American Tobacco (BTI) adding R3.39 or 1% to R342.39, SAB (SAB) was R3.80 or 1.48% to the good at R260.79, and Bidvest (BVT) claimed R7.20 or 5.05% to R149.70.

Compagnie Richemont (CFR) dropped R2.15 or 5.63% to R36.05.

Mobile operator MTN (MTN) gathered R1.74 to R132.50, and Tekom (TKG) found 53 cents or 1.68% to R32.03.

Shares in Allied Electronics Group Altron (ATN) which is invested in the telecommunications, multi-media, IT and power electronics industries skyrocketed on Friday, adding 7.35% or R1.76 to R25.70 on the JSE after Power Technologies (Powertech), its wholly owned subsidiary entered into a joint venture with EnerSys, a global leader in stored energy solutions for industrial applications.

Powertech sold 50.1% of its Industrial Battery business incorporating Battery Technologies, Rentech and Willard Industrial division to Enersys. The transaction is effective as of October 3.

Country Bird (CBH) shipped 22 cents or 4.87% to R4.30, while Pioneer Foods (PFG) dropped R1.50 or 2.48% to R59.

Sugar group Illovo (ILV) improved 91 cents or 3.75% to R25.20.

Banker Nedbank (NED) garnered R3.94 or 2.97% to R136.74.

Retailer Massmart (MSM) shelved R3.60 or 2.60% to R138.70, along with Foschini Group (TFG), off R2.86 or 3.26% to R84.92. Shoprite (SHP) also gave up R3.51 or 3% to R113.50.

Construction group Murray & Roberts (MUR) declined 75 cents or 2.80% to R26. Building materials retailer Hardware Warehouse (HWW) added 4 cnets or 8.51% to 51 cents. The group on Friday announced headline and diluted headline earnings from continuing operations per share of 5.11 cents for the year ended June 2011, from 2.27 cents previously.

It noted total basic and diluted earnings per share of 0.85 cents, from a loss per share of 12.58 cents in 2010.

Basic and diluted earnings per share from continuing operations extended to 4.85 cents, from 1.91 cents.

Group net asset value per share in cents was 35.75 in 2011 from 34.89 in 2010.

Revenue from continuing operations climbed to R354.177 million, from R310.444 million, while profit from operations stood at R10.158 million, from R6.967 million earlier.

Media group Naspers (NPN) added 5.47 or 1.58% to R350.97, with Avusa (AVU) moving the other way; R1.35 or 5.72% lower at R22.25.

Phumelela Gaming and Leisure (PHM) added 10 cents to R11.15. The group reported a 5% increase in earnings for the year ended July 2011, despite the challenging local trading conditions, the strong rand and the termination of the Racing UK (RUK) rights agreement in the previous year impacted negatively on international operations.

It reported a 5% rise in diluted headline earnings per share to 82.76 cents for the year ended July 2011 from 78.62 cents a year ago. Total income rose by 4% to R883.2 million.

The group said a strong performance by the Isle of Man (IOM) Tote operation helped lift net betting income by 6% to R666.3 million, with local operations up 4% to R620.7 million and the IOM Tote up 55% to R45.6 million. - I-Net Bridge

Source: http://www.iol.co.za/jse-flat-after-late-recovery-1.1148447

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