Gold counters keep JSE in the black

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JSEPic INDEPENDENT MEDIA Naspers is the only listed company in SA with such a direct exposure to China. Photo: Leon Nicholas.

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



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