JSE edges higher on resources

THE JSE edged into the black by noon today, helped by resource counters which gained momentum with the rand weakening slightly from its earlier levels.

In noon trade the JSE all share index had collected 0.64%, with resources adding 1.29%. Platinum producers edged up 0.50%, while gold producers weakened 0.20%.

Banks weakened 0.84% and financials were flat, down 0.14%, while industrials edged up 0.31%.

The rand was bid at R7.42/$, from R7.33 when the JSE closed yesterday. Gold was quoted at US$1,135.10 a troy ounce from US$1,132.85/oz at the JSE's last close, and platinum was at US$1,444/oz, from US$1,448.50/oz at its previous close.

"Resources are picking the market up on the back of firm commodity prices. We saw platinum spike to $1,444 this morning. Also the weakness in the rand from where it was earlier this morning," the trader said.

"Looking forward to the rest of the day, it will be determined by what is happening with international markets.

"We are approaching technical resistance levels around 27,500-28,000. Traders will also be looking at that," he said.

Dow Jones Newswires reported that the FTSE 100 stayed down but off earlier lows, showing no reaction to the release of decent UK CPI data. Consumer prices rose 1.5% year-on-year and 0.2% on a monthly basis. "CPI has come in slightly above expectations, but the BOE has already warned the market that we will see a temporary blip in inflation, possibly even above the upper limit in the near future," said a trader. As a result, "everyone is very relaxed about it and unconcerned that QE is proving problematic," he added. Still to come on the economic calendar, US PPI and industrial production at 1330 GMT and 1415 GMT, respectively.

The FTSE 100 was last down 0.39%.

US stocks are called to open slightly lower as traders take profits on the back of a slightly higher dollar, said David Morrison at GFT. He called DJIA down 20 points and the S&P 500 down 2 points. He noted however "the downward trend for the dollar remains in place and this will continue to support equities, in the US and elsewhere." He added that Bernanke's attempt to 'talk up the greenback' on Monday "fooled no one, as actions speak louder than words."

On the economic calendar, investors will turn to US PPI at 1330 GMT and industrial production at 1415 GMT.

Among equity movers on the JSE, Anglo American plc put on R5.50, or 1.69%, to R330.60 and BHP Billiton added R5.35, or 2.34%, to R233.68.

Petrochemicals group Sasol collected 75 cents to R295.

Kumba Iron Ore added R2.59, or 1.01%, to R258.80.

AngloGold Ashanti weakened 30 cents to R333.30, Gold Fields eased 12 cents to R108.83 and Harmony was off 55 cents to R79.50.

Platinum miner Anglo Platinum rose R6.10 to R692.99 and Impala Platinum was 90 cents higher at R172, but Lonmin declined R3.37, or 1.58%, to R210.48.

In diversified miners, African Rainbow eased 32 cents to R168.68.

Elsewhere on the JSE, brewer SABMiller gained R3.30, or 1.59%, to R211.20 and British American Tobacco rose R3.80, or 1.55%, to R248.30, but Barloworld was off 66 cents, or 1.29%, to R50.69.

Freeworld Coatings was up 35 cents, or 4.5%, to R8.10. Earlier it reported a 34% fall in its earnings per share for the full year from 105 cents to 70 cents in the year to end September 2009.

Net profit fell 32% to R147 million from R216.9 million a year ago.

The company declared a final dividend of 7 cents a share, bringing the total dividend to 12 cents a share.

Banking group Standard Bank weakened 95 cents to R96 and Nedbank lost R2.31, or 1.92%, to R118.19.

Financial services group Old Mutual collected 17 cents, or 1.18%, to R14.55.

Media group Avusa was down 39 cents, or 2.17%, to R17.61.

Retailer Pick n Pay gave up 42 cents, or 1.02%, to R40.58 and Massmart lost R1.95, or 2.18%, to R87.50, but Steinhoff was up 35 cents, or 1.91%, to R18.70.

Construction group Murray & Roberts collected 63 cents, or 1.14%, to R55.88.

Telecommunications groups, MTN Group firmed R1.80, or 1.54%, to R118.80 but Vodacom inched 12 cents lower to R55.88 and Telkom eased 15 cents to R40.35.

Reinet Investments inched up nine cents to R11.63. It earlier reported earnings per share from continuing operations of Euro 2.08 for the six months ended September compared with Euro 2.39 for the six months ended March 2009.

The company's net asset value at end September 2009 was € 2.254 billion - an increase of 22% from end March 2009. The net asset value per ordinary share was Euro 11.51. Profit for the period was €406 million.