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Last Updated: Tuesday, 09 February 2010 17:52:16

JSE edges higher on resources

Published: 2009/11/18 01:08:40 PM

A firming of resource counters saw the JSE edge higher into the black by noon today in what a local trader said was an inflow of money to emerging markets.

In noon trade the JSE all share index had collected 0.53%, with resources up 0.97%. Platinum miners collected 0.57% and gold producers edged up 0.25%.

Banks were flat, up 0.01%, financials eased 0.11% and industrials were up 0.34%.

The rand was bid at R7.43/$, from R7.45 when the JSE closed yesterday. Gold was quoted at US$1,146.32 a troy ounce from US$1,132.75 at the JSE's last close, and platinum was at US$1,463/oz, from US$1,454/oz at its previous close.

"We have moved slightly higher. There is a lot of risk buying. People are buying into riskier assets, a lot of money is flowing out of the dollar into emerging markets," the trader said.

"Resources are strong and the guys are saying that this could carry on until the first quarter of next year.

"The rand - it seems like the market is ignoring the rand, because if it wasn't then financials would be flying, but they are not. For the rest of the day we might see the market go up a bit more," he said.

Dow Jones Newswire reported that the FTSE 100 maintaining limited gains and shrugging off the release of BOE minutes, as much of the analytical detail was divulged in last week's quarterly inflation report, says a strategist. The minutes show the Monetary Policy Committee was divided on the appropriate level of bond purchases at its November meeting, the first three-way split in the vote since August '08. Miners continue to lead the gains, with Fresnillo +2.6% and Lonmin +3%. Still to come on the economic calendar, UK CBI industrial trends are at 11:00 GMT, while in the US, CPI and housing starts are at 13:30 GMT.

The FTSE 100 had last collected 0.24%.

Among equity movers on the JSE, Anglo American plc added R2.25 to R330.25 and BHP Billiton rose R4.31, or 1.86%, to R236.44.

Petrochemicals group Sasol was up R1.49 to R296.29.

Paper group Sappi collected 60 cents, or 2.07%, to R29.60 while rival Mondi was down 57 cents, or 1.33%, to R42.43.

AngloGold Ashanti added R1.90 to R336 and Harmony collected 47 cents to R80.85, but Gold Fields weakened 42 cents to R108.33.

Platinum miner Anglo Platinum rose R6.72 to R716.72 and Lonmin put on R5.83, or 2.75%, to R217.83.

In diversified miners, Exxaro was up R1.37, or 1.46%, to R95.47.

Among industrials on the JSE, brewer SABMiller rose 97 cents to R210.87, Barloworld was up R1.80, or 3.49%, to R53.40, Imperial rose R2.71, or 3.30%, to R84.77 and Famous Brands gained R1.98, or 9.90%, to R21.98.

Banker Standard Bank collected 40 cents to R97.15, but Nedbank lost 95 cents to R116.55 and Absa weakened 45 cents to R128.

Sugar group Illovo was off 38 cents, or 1.17%, to R32.14 and Tongaat Hulett declined R1.09, or 1.09%, to R99.01.

Retailer Lewis collected 80 cents, or 1.57%, to R51.80 and Shoprite was up 96 cents, or 1.55%, to R62.76, but Foschini declined R1.58, or 2.70%, to R56.90.

Cement manufacturer Pretoria Portland Cement weakened 47 cents, or 1.41%, to R32.91.

Telecommunications groups, MTN Group eased 27 cents to R119.51 and Telkom inched 10 cents lower to R39.90, but Vodacom put on 75 cents, or 1.34%, to R56.60.

Reunert added R1.53, or 2.94%, to R53.60. The electronics and electrical engineering company earlier reported that its full year diluted headline earnings per share were flat at 646.1 cents from last year's 648.7 cents.

Releasing its annual results for the year to end September 2009, Reunert declared a cash dividend of 188 cents a share. This is lower than last year's dividend of 241 cents a share.

Revenue declined by 6% to R10.3bn from R10.9bn and operating profit fell 28% to R1.1bn from R1.6bn a year ago.

Headline earnings were unchanged at R1.2bn while normalised earnings declined by 21% to R892 million.

International IT company Dimension Data was up 37 cents to R9.75. It earlier reported revenue of US$3.973bn for the year ended September 2009 from $4.511bn a year ago. Revenue was 0.4% higher in constant currency, it said.

Operating profit was up 25.4% in constant currency to $194.4 million.

The group's diluted headline earnings per share rose to 7.6 US cents from 6.8 cents before, while earnings per share amounted to 8.0 cents from 7.7 cents.

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