JSE higher in line with world markets

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JSE1 Independent Newspapers The JSE. Photo: Simphiwe Mbokazi.

The JSE opened in positive territory on Monday‚ in line with world markets‚ with platinums continuing their gains from Friday‚ with all the local major indices trading in the black and Asian markets also higher.

At 9.48am the all-share index was 0.46% higher at 36‚986.79 points with the platinum and gold indices gaining 1.74% and 1.09% respectively.

The Japanese Nikkei 225 closed 1.43% higher on the hopes of further monetary easing and the Hong Kong Hang Sent Index was last seen 0.29% higher.

The fiscal cliff still pervades global market thinking but US equity markets finished up on Friday — the first meaningful gain since the November 8 election‚ Rand Merchant Bank said in a morning note.

“This week we will receive important data and policy decisions from the major economic zones. The Eurogroup finance ministers will meet on Tuesday to assess Greece’s debt sustainability and should approve the disbursement of the next aide tranche. While important‚ the real battle to watch is between the IMF and EU over further debt write-offs. Earlier in the day the Bank of Japan will debate but probably decide against further policy easing in a decision that will be key for the yen‚” the bank said.

“Eurozone and Chinese PMI data will be out on Thursday. Focus will be on whether France and Germany are slipping into recession and whether China’s economic acceleration is for real‚” RMB said.

“The US markets will be closed on Thursday but various bits of housing data will be released through the early part of the week. Ben Bernanke talks on Tuesday and is expected to give some detail of how the Fed will deal with the end of operation twist‚” RMB said.

“This week’s event risk is concentrated locally‚ with the RMB/BER Business Confidence Index‚ the October CPI and the SA Reserve Bank MPC meeting on the calendar. While the RMB/BER BCI rose from 41 in the second quarter to 47 in the third quarter‚ labour unrest‚ political uncertainty and the credit rating downgrades very likely weighed sentiment down in the fourth quarter. We expect a slight moderation in CPI inflation‚ from 5.5% year on year to 5.4%‚ which is in line with consensus and we are in line with the view that the SA Reserve Bank will keep the repo rate unchanged at 5.0%‚” RMB said.

Local stocks that showed movement were Anglo American Platinum (AMS) up 1.91% to R377 and Impala Platinum (IMP) adding 2.18% to R145.90‚ while Northam Platinum (NHM) gave back 1.23% to R32.10.

AngloGold Ashanti (ANG) added 1.19% to R274.36 and Harmony (HAR) gained 2.03% to R68.97.

Barloworld (BAW) added 1.23% to R74 after reporting a 46% rise in headline earnings per share to 680 cents for the year ended September from 465 cents a year ago.

Telkom (TKG) jumped 2.17% to R15.99 after it reported an 80.6% decline in headline earnings per share for the six months ended September to 37.2 cents from 191.7 cents in the previous period.

African Bank (ABIL‚ ABL) gained 1.31% to R30.14 after reporting an 18% rise in headline earnings per share to 342.5 cents for the year ended September.

Healthcare group Netcare (NTC) was 0.82% softer at R18.10 after reporting an 18% decline in diluted headline earnings per share to 93.6 cents for the year ended September from 114.2 cents a year ago.

Hosken Consolidated Investments (HCI) jumped 4.28% to R102.72 after reporting a 40% rise in headline earnings per share to 405.28 cents from the six months ended September from 290.1 cents previously. - I-Net Bridge



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