Gold counters keep JSE in the blackComment on this story
The JSE was flat on Friday morning with gold miners making the biggest gains followed by platinums‚ after the latter soared by 3.19% on Thursday due to positive global sentiment. Resources‚ however‚ pulled back a bit.
The negative news of a downgrade of SA’s long-term foreign currency credit rating by one notch by Fitch overnight did not seem to have much affect on the local market. Fitch usually does a ratings review this time of the year.
At 10.01am‚ the all share index was flat (0.04%) at 40‚317.52 points‚ with the gold index adding 1.40% and platinums adding a further 0.60%‚ while resources gave back 0.61%.
Rating agency Fitch followed Moody’s and S&P in downgrading SA’s long-term foreign currency credit rating by one notch to BBB‚ while reducing the long-term local currency rating from A to BBB+.
“The good news is that the outlook from Fitch is stable‚ whereas Moody’s and S&P still have SA on negative outlook. The downgrade was prompted by underperforming growth‚ weakening public finances‚ infrastructure constraints‚ excess real wage growth and socio-political tensions‚” Rand Merchant Bank said in a morning note.
Elsewhere Friday morning’s higher than expected Chinese inflation figure at 2.5% brought some caution into global markets.
On the JSE Anglo American (AGL) added 0.38% to R288.25‚ while BHP Billiton (BIL) gave up 2.16% to R292.11.
Lonmin (LON) gained a further 1.14% to R44.20 after rallying 6.72% on Thursday‚ due to renewed investor demand in the platinum sector after last year’s woes.
Gold miners Anglogold Ashanti (ANG) added 1.65% to R251.47 and Gold Fields (GFI) advanced by 1.58% to R105.39.
British American Tobacco (BTI) added 1.08% to R444.98 and SAB (SAB) improved 1.19% to R407.69.
In construction Group Five (GRF) gained 1.50% to R29.15‚ while Basil Read Holdings (BSR) lost 1.40% to R10.54. - I-Net Bridge