JSE pushed firmer
Article By: Gareth Vorster
Wed, 03 Mar 2010 17:59
Stocks ended firmly in the black on Wednesday led by resources, amid good performing metal prices.
However, a local equities trader noted that a strong rand offset further gains on the local bourse.
By 5pm the JSE all share index was up 1.14 percent, with resources 2.15 percent better off, the gold mining index added 1.49 percent and platinum miners picked up 2.49 percent.
Banks and financials gained 0.51 percent and 0.87 percent respectively, while industrials advanced 0.26 percent.
The rand was bid at 7.47 to the dollar, from 7.56 seen at the JSE's close on Tuesday. Gold was quoted at $1137.71 a troy ounce from $1126.74 at the JSE's last close. Platinum was at $1581.50/oz from $1565/oz at the JSE's last close.
A local equities dealer said: "Metal prices firmed during the course of the day, pushing resources up. Markets looked like they wanted to go higher, but a stronger rand curbed additional gains, weighing on the bourse somewhat.
"On the international markets, concern over Greece appears to have subsided for now," he said.
Dow Jones Newswires reported US stocks opened higher on Wednesday, boosted by smaller-than-expected private sector job losses and new plans unveiled by Greece to manage its budget.
The Dow Jones Industrial Average was up 13 points, or 0.1 percent, at 10 419 in early trading.
Brightening the labour market outlook, payroll giant Automatic Data Processing reported that the private sector lost 20 000 jobs in February, less than half the anticipated drop, according to its national employment report published with consultancy Macroeconomic Advisers. Economists surveyed by Dow Jones had expected to see a loss of 50 000 jobs. The February employment drop was the smallest since employment began falling in February 2008.
Also boosting market confidence, the Greek government announced Wednesday a new austerity plan totalling €4.8-billion ($6.53-billion) to ensure it can meet its deficit-cutting pledge this year, including steep cuts in civil service salaries and entitlements. Greece will also raise its sales tax by two percentage points.
On the JSE, Anglo American (AGL) added 9.45 rand, or 3.32 percent, to 293.94 rand and BHP Billiton (BIL) firmed 4.54 rand, or 1.92 percent, to 241.50 rand. Sasol (SOL) rose 2.01 rand to 286 rand.
Platinum miner Angloplat (AMS) advanced 5.40 rand to 692.90 rand, Impala Platinum (IMP) added 6.60 rand, or 3.54 percent, to 193.10 rand, and Lonmin (LON) garnered six rand, or 2.88 percent, to 214 rand.
Anglogold Ashanti (ANG) pocketed three rand, or 1.08 percent, to 281 rand, with Goldfields (GFI) finding 1.82 rand, or 2.02 percent, to 91.80 rand. Harmony (HAR) scored 135 cents, or 1.85 percent, to 74.50 rand.
Shares in ArcelorMittal (ACL), the South African arm of the world's largest steel producer, fell 22.65 percent, or 26.42 rand, to 90.25 rand after trading in its shares was resumed on Wednesday.
The local steel maker asked the JSE to suspend its shares last Friday after announcing that Sishen Iron Ore Company (SIOC), a subsidiary of Kumba Iron Ore(KIO), would no longer be supplying it iron ore at a discounted rate.
A supply agreement struck by the two companies in 2001 allowed the steel maker to buy 6.25 million tons a year from SIOC on a cost plus three percent basis.
Kumba, which is willing to supply the iron ore to ArcelorMittal at commercial prices, said the steel miner failed to convert its 21.4 percent undivided share in the old order mining rights which it held in relation to the Sishen mine to now order mining rights under the new mining laws.
Paper and pulp group Mondi (MND) added 279 cents, or 6.04 percent, to 49 rand while Sappi (SAP) put on 94 cents or 3.22 percent to 30.15 rand.
Nampak (NPK) gathered 63 cents, or 3.71 percent, to 17.60 rand.
Bidvest (BVT) added 4.60 rand, or 3.40 percent, to 140 rand, and Imperial (IPL) profited 1.76 rand, or 1.78 percent, to 100.36 rand.
Among banking stocks, Absa (ASA) was 150 cents richer, or 1.10 percent at 138 rand. Abil (ABL) picked up 93 cents, or 2.83 percent, to 33.74 rand, and Investec (INL) grabbed 1.70 rand, or 3.01 percent, to 58.20 rand.
The country's biggest short-term insurer, Santam (SNT) was 1.45 rand firmer, or 1.39 percent, to 105.65 rand. On Wednesday it reported that diluted headline earnings per share for the year ended December had increased from 582 cents to 889 cents.
Diluted headline earnings from continuing operations increased from 618 cents to 889 cents.
Santam said that after a challenging first half, it had experienced a significantly better second half. This resulted in a pleasing overall performance for 2009 against the backdrop of the difficult economic climate and underwriting conditions.
Sasfin (SFN) was untraded. The financial services group on Wednesday reported a 27 percent decline in headline earnings for the six months ended December from 65 million rand to 48 million rand.
Headline earnings per share showed a larger decrease of 32 percent year on year, declining from 239 cents to 164 cents, due to the dilutory effect of the new capital injection received from the IFC.
The group said its results were affected by marginal asset growth in its key areas of business and increased impairment losses, in an economy still feeling the "lag effect" of the global financial crisis.
Among retailers, JD Group (JDG) moved 1.67 rand higher, or 3.84 percent, to 45.20 rand, Woolworths (WHL) increased a rand, or 4.76 percent, to 22 rand, and Massmart (MSM) climbed 2.52 rand, or 2.59 percent higher, to 100 rand. PiknPay (PIK) found a rand, or 2.45 percent, to 41.80 rand.
Construction group Murray & Roberts (MUR) added 90 cents, or 2.35 percent, to 39.20 rand, and Group Five (GRF) profited 85 cents, or 2.61 percent, to 33.45 rand. Assore (ASR) marched 25 rand higher, or 3.47 percent, to 745 rand.
Packaging group Astrapack (APK) gained 95 cents, or 9.22 percent, to 11.25 rand.
Africa's largest pharmaceutical Manufacturer, Aspen Pharmacare (APN) shed 48 cents, to 76.52 rand. The group lifted headline earnings per share from continuing operations by 27 percent from 193.8 cents to 242.3 cents for the six months ended December.
Group profit after tax from continuing operations increased by 31 percent to R889-million from R690-million , with group operating profit up 16 percent from R1.136-billion to 1.314 billion rand.
This was on the back of a 10 percent growth in revenue from R4.142-billion to R4.576-billion.
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