JSE firm amid positive global sentiment

Published Feb 11, 2010

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The JSE opened in the black on Thursday amid general positive sentiment globally, with futures up and Europe set to open higher.

At 9.19am the JSE all share index was 0.85 percent firmer, with resources up 1.40 percent and platinum miners 1.21 percent stronger.

Gold miners gained 1.03 percent. Banks and financials firmed 0.42 percent and 0.40 percent respectively, with industrials adding 0.49 percent.

The rand was bid at R7.67/$ from R7.70/$ when the JSE closed on Wednesday. Gold was quoted at $1 080.96/oz from $1 071.26/oz at the JSE's last close, and platinum was at $1 520.50/oz, from $1 503.50/ozat the bourse's previous close.

A local equities trader said: "World markets are generally positive at the moment, so we are just following suit. Futures are higher, and eyes will be on the European Union leaders regarding Greece."

"Locally, some stocks look to be a bit on the cheap side, following the recent sell-off."

Dow Jones Newswires reports that European stocks are called to open higher on Thursday, as the prospect of lower interest rates across much of the globe continues to be reinforced, said Ben Potter at IG Markets.

He called London's FTSE 100 up 32 points at 5164. He noted that traders "have already looked for the positives in that Bank of England Inflation Report pointing towards sluggish economic growth in '10 and Bernanke continues to push the need for an accommodative monetary policy."

On the economic calendar, the ECB Monthly Report is at 11am SA time, while in the US, retail sales and initial jobless claims are at 15:30 SA time and business inventories are at 3pm SA time.

In Asia, regional markets traded mostly higher after better-than-expected data from Australia, China.

On the JSE, Anglo American added R5.25, to R289 and BHP Billiton picked up R3.59, or 1.60 percent, to R227.99.

Sasol added R2 to R279.

Platinum miner Anglo Platinum added R11.14 to R736.89, and Impala Platinum found R1.79, to R189.30.

Among gold counters, AngloGold Ashanti pocketed R3.90, or 1.37 percent, to R289.05.

South African gold producer DRDGold rose 10c, or 2.22 percent, to R4.60.

The group on Thursday reported a turnaround in its quarterly earnings by posting headline earnings of 1.4c a share in the December quarter after recording a 13.1c loss per share in the September quarter.

Production was 4 percent higher quarter on quarter at 59 866 ounces, from 57 292 ounces in the prior quarter but just short of the 60 057 ounces produced in June.

Higher production together with a higher gold price received and a drop in cash operating costs resulted in a cash operating profit of R87.4 million in the three months to end December 2009 compared to a R4.2 million loss in the three months to end September 2009.

Kumba Iron Ore bagged R2.99, to R311.99.

Diversified miner, African Rainbow profited R2.35, or 1.43 percent, to R167.25.

Paper Group Mondi marched R3.16, or 7.38 percent higher, to R45.96.

Telecommunications group Vodacom moved 88c, or 1.61 percent higher, to R55.48.

Among retail stocks, JD Group picked up 45c, or 1.05 percent, to R43.45.

Industrials group British American Tobacco moved R1 higher, to R251.

Media giant Naspers gained R4.51, or 1.69 percent, to R271.02. - I-Net Bridge

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