JSE edges higher on stimulus hopes

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IOL bus jul6 jse new pic INLSA Photo: Leon Nicholas

The JSE share market remained in positive territory at noon‚ supported mainly by the recovery of gold counters from last week's oversold levels.

The value and volumes traded on the local bourse were fairly light due to a public holiday in the US.

"Markets are still betting that China will put in place measures to stimulate its economy after the latest weak purchasing managers' index‚" said Nick Kunze‚ a director at Terrassen Capital Management in Johannesburg.

The official measure came in at 49.2‚ indicating a contraction for the first time since November last year‚ Dow Jones Newswires reported.

European shares were mostly higher at noon‚ as were most of their Asian counterparts by the close of trade‚ on stimulus hopes.

At 12.45pm the JSE all-share index was up 0.20% at 35.488‚95 points‚ with gold miners adding 1.44%.

Among big movers‚ AngloGold Ashanti (ANG) added 2.03% to R268.22 and Harmony (HAR) was up 1.71% to R69.41.

Platinum miner Lonmin (LON) recovered 1.89% to R78.91‚ while diversified miner African Rainbow (ARI) lost 1.69% to R144.51.

In industrials‚ Barloworld (BAW) lifted 2.07% to R72.47.

Among banks‚ Nedbank (NED) was down 2.11% to R181.10 and Absa (ASA) shed 2.43% to R138.79.

Construction firm Wilson Bayly Holmes Ovcon (WBHO‚ WBO) gained 3.42% to R136.30 after it reported on Monday diluted headline earnings per share of 1‚160.4 cents for the year ended June 2012 from 1‚402.4 cents a year ago.

The civil engineering and building contracting company reported a 21.2% increase in revenue to R17.89 billion‚ while operating profit declined to R974.76 million from R1.013 billion previously.

-I-Net Bridge

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