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Send  Print  Share  RSS  Twitter  19 Oct 2009

SA Stocks AM: Resources push JSE slightly higher

Johannesburg, Oct 19 (I-Net Bridge) - Having ended last week on a sour note, the JSE was slightly higher in early trade on Monday supported by resource counters in what a local equities trader said was a technical bounce.
At 09:20 the JSE all share index had collected 0.71%, with resources up 1.12%, gold miners rising 1.18% and platinum producers putting on 1.19%.
Banks edged up 0.40% and financials and industrials collected 0.46% and 0.40% respectively.
The rand was bid at 7.31 to the dollar from 7.33 just before the JSE closed on Friday. Gold was quoted at US$1,054.29 a troy ounce from US$1,050.99/oz just before the JSE`s last close, and platinum was at US$1,346.50/oz, from US$1,338.50/oz at its previous close.
"We are up slightly this morning, it`s a bit of a technical bounce, volumes are still slight," the trader said.
"Like I said last week, the market can still be strong for the next two weeks. Most of the results that have come out have beaten expectations. Having opened higher, we might have a good couple of days. There is not much news out today. Resources are up and are supporting the market, they are trading at important technical levels at the moment. It has become a technical traders` market.
"Commodity prices have ticked up slightly and base metals are performing a bit better, however, I would still be careful for the next two weeks," he said.
Dow Jones Newswires reports that the DJIA failed to close the week above 10,000 as disappointing quarterly reports from International Business Machines, Bank of America and General Electric weighed on stocks on Friday.
Capping a seven-month surge in stocks, a slate of improved earnings reports from Intel, JPMorgan and others this week lifted the Dow back above 10,000 for the first time in a year on Wednesday. Some of that exuberance, however, waned on Friday with companies across the corporate landscape disappointing now- heightened investor expectations.
The DJIA on Friday closed down 67.03 points, or 0.67%, at 9995.91. More than half that loss came from IBM, which fell 6.34, or 5%, to 121.64, after the company suggested that businesses were still reluctant to start spending again in its third-quarter earnings report.
Also weighing on the Dow, Bank of America lost 84 cents, or 4.6%, to 17.26, after posting its first quarterly loss of the year as greater consumer and commercial loan losses more than offset strong trading profits and a boost in revenue from its acquisition of Merrill Lynch. Meanwhile, General Electric slid 71 cents, or 4.2%, to 16.08, as the industrial giant posted third-quarter
earnings that fell a less-than-feared 42%, though revenue was lighter than expected.
Still, the Dow closed the week up 130.96, or 1.33%, and is up 53% since hitting a 12-year closing low on March 9. While there remains a flood of doubters to the market`s broad rally, others note stocks typically foreshadow a recovery about six to nine months ahead of an actual turn to the positive for earnings. Analysts still expect profits to decline for the ninth consecutive
quarter this time around, but are currently forecasting a 60% earnings rebound in the fourth quarter.
"And earnings are expected to be up another 20% or more next year," said Kent Engelke, chief economic strategist with Capitol Securities Management. "The market isn`t overvalued. Could say it`s appropriately valued going into 2010."
For Friday, the S&P 500 fell 8.88, or 0.81%, to 1087.68, but ended the week up 16.19, or 1.51%, marking its second weekly gain in a row.
Asian share markets are mixed on Monday with technology stocks in Japan tracking drops in their US counterparts on Friday, but with property plays racing ahead in China.
In Japan, the Nikkei ended down 0.2% but Hong Kong`s Hang Seng was last up 0.4%.
European bourses are likely to start mixed as investors become more cautious about exposure with momentum in danger of tipping to the downside in the midst of the earnings season.
On the JSE, Anglo American plc (AGL) was up 3.80 rand, or 1.44%, to 266.80 rand and BHP Billiton (BIL) rose 2.72 rand, or 1.26%, to 217.85 rand.
Petrochemicals group Sasol (SOL) gained 1.73 rand to 306.72 rand.
ArcelorMittal (ACL) added 1.70 rand, or 1.48%, to 116.20 rand and Kumba Iron (KIO) was up 1.51 rand to 243.51 rand.
Gold miner AngloGold Ashanti (ANG) advanced 3.46 rand, or 1.04%, to 335.46 rand, Gold Fields (GFI) was up 1.09 rand, or 1.02%, to 108.29 rand and Harmony (HAR) added 1.70 rand, or 2.04%, to 85.20 rand.
Platinum miner Angloplat (AMS) put on 7.94 rand, or 1.20%, to 667.95 rand, Impala Platinum (IMP) rose 1.99 rand, or 1.24%, to 161.99 rand and Lonmin (LON) gained 4.05 rand, or 2.01%, to 205.50 rand.
Elsewhere on the JSE, brewer SABMiller (SAB) weakened 32 cents to 196.03 rand.
Among banks, Nedbank (NED) collected 75 cents to 126.30 rand and Absa (ASA) edged up 51 cents to 129.50 rand.
Sanlam (SLM) was up 21 cents, or 1%, to 21.21 rand.
Sugar group Tongaat Hulett (TON) added 1.47 rand, or 1.55%, to 96.47 rand.
Retailer Pick n Pay (PIK) was 58 cents, or 1.47%, higher at 39.98 rand and Lewis (LEW) rose 90 cents, or 1.63%, to 56 rand, but Mr Price (MPC) weakened 48 cents, or 1.34%, to 35.32 rand and Clicks (CLS) was down 25 cents, or 1.05%, to 23.65 rand.
Liberty International (LBT) added 71 cents, or 1.15%, to 62.21 rand.
Construction group WBHO (WBO) lost 1.52 rand, or 1.24%, to 120.78 rand.
Among telecommunications groups, MTN Group (MTN) declined 50 cents to 122 rand and Vodacom (VOD) eased 23 cents to 55.47 rand, but Telkom (TKG) edged up 24 cents to 43.49 rand.
At 09:20 local time (07:20 GMT)
ALL SHARE (J203) 26182.390 25997.650 0.71 184.740
INDUSTRIALS (J257) 24901.950 24802.750 0.40 99.200
FINANCIALS (J580) 19106.700 19019.020 0.46 87.680
RESOURCES (J210) 46854.320 46335.859 1.12 518.461
GOLD (J150) 2656.040 2624.960 1.18 31.080
PLATINUM (J153) 66.280 65.500 1.19 0.780
BANKS (J835) 35614.020 35471.250 0.40 142.770
I-Net Bridge.
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