JSE a tad up

The JSE tracked the improvement in global stocks to trade slightly higher at noon on Thursday.

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The JSE tracked the improvement in global stocks to trade slightly higher at noon on Thursday.

A local trader said that the improving situation in Japan following the earthquake and tsunami led to the return of bargain hunters in the market.

By 12:02 local time, the JSE all-share index was up 0.14%, with banks up 0.56% and resources 0.54% higher. Financials added 0.36%, but gold counters gave up 0.79%.

Industrials were 0.43% weaker, while platinum miners were down 0.26%.

The rand was bid at 7.04 to the dollar from 6.96 at the JSE's close on Wednesday. Gold was quoted at US$1,401.72 a troy ounce from US$1,401.59/oz at the JSE's previous close, while platinum was at $1,696/oz from $1,718.50/oz before.

The trader said that, after opening weaker, the JSE had improved slightly on the back of rising commodity prices and the London's FTSE.

“The fact that there has not been any further negative news in Japan overnight is also leading the turnaround. Markets are more or less stabilising and bargain hunters are looking to buy,” the trader said.

Dow Jones Newswires reported that European stocks rose on Thursday, amid hopes that the nuclear situation in Japan could be contained and as investors pinned their hopes on a G-7 conference call later in the session.

Meanwhile, the Japanese yen weakened, after touching its strongest level yet against the dollar, on talk of currency market intervention by the Japanese authorities. German bonds and the gold price were lower early in the European day, while oil prices were firmer.

By 10:50 SA time, the Stoxx Europe 600 index was up 1.0% at 264.90. London's FTSE 100 index was 0.9% higher at 5,646.96, Frankfurt's DAX rose 1.2% to 6,593.14, and Paris's CAC-40 was 1.3% higher at 3,745.27.

French Finance Minister Christine Lagarde has called for a G-7 meeting of finance ministers and central bankers, most likely to take place via a telephone conference, and traders are hoping it will lead to some kind of global intervention to stabilise markets.

“The market is likely to speculate whether this meeting will lay the groundwork for potential intervention in the forex market against yen strength,” said Rabobank.

At the same time, Japan's latest attempt to cool down reactors at the stricken Fukushima Daiichi nuclear power plant by dropping ocean water on the overheated units helped to soothe fears.

Despite the buoyant mood, market participants cautioned that while the volatile situation in Libya and the Middle East had disappeared from the radar screen due to the events in Japan, it still had the potential to seriously affect global growth prospects.

On the economic calendar, US consumer price index and initial jobless claims are due at 12:30 GMT, while industrial production is due at 15:15 SA time and the Philadelphia Fed index is released at 14:00 GMT.

On the JSE, Anglo American (AGL) rose 1.75 rand to 340.80 rand, BHP Billiton (BHP) gained 4.26 rand or 1.68% to 257.75 rand, and Sasol (SOL) picked up 1.53 rand to 367.52 rand.

Among gold miners, Anglogold Ashanti (ANG) slid 2.50 rand to 314 rand while Randgold (RNG) added 10 cents or 3.77% to 2.75 rand.

Anglo Platinum (AMS) gained 3.45 rand to 650.45 rand, as Northam Platinum (NHM) shed 34 cents to 41 rand. Lonmin (LON) was 34 cents higher at 181.94 rand.

Steel producer ArcelorMittal (ACL) slumped 24 cents to 84.87 rand. Exxaro (EXX) was up 1.29 rand to 146.29 rand.

Diversified black-controlled group Mvelaphanda (MVG) was 11 cents or 3.67% off at 2.89 rand after reporting a headline loss per share of 0.7 cents for the six months ended December 2010, compared with a headline profit of 124.9 cents for the previous comparable half-year.

The basic loss per share was 53.6 cents versus earnings per share of 117.3 cents previously.

Mobile phone operator Vodacom (VOD) picked up 1.60 rand or 2.20% to 74.31 rand and Telkom (TKG) was 30 cents higher at 35.30 rand.

Media giant Naspers (NPN) plunged 11.50 rand or 3% to 371.20 rand. Imperial (IPL) shed 1.65 rand or 1.53% to 105.85 rand.

In banking, Nedbank (NED) added 1.42 rand or 1.07% to 134.59 rand and Firstrand (FSR) inched 18 cents higher to 18.75 rand.

International specialist banking group Investec plc (INP, INL) said on Thursday that its operating profit for the year ending March 31 was expected to be marginally higher than the prior year, notwithstanding operating conditions remaining difficult owing to the uncertainty of the global geopolitical landscape.

At a pre-close briefing, the group, which has dual listings in London and Johannesburg, said that the UK business was expected to post an operating profit ahead of the prior year and the South African business an operating profit in line with the prior year.

Datatec (Datatec, DTC) gained 42 cents or 1.21% to 35.02 rand.

The information and communications technology group said that subsidiary Logicalis had agreed to acquire Inca Software from its parent company, AIM-listed Avisen (AVI), for a total equity value consideration of GBP7.3 million.

Inca, the largest IBM Cognos partner in the UK, provides a full suite of IBM business analytics products and implements solutions for more than 400 companies across all industry sectors.

The acquisition was set to create a UK systems integrator capable of delivering the full suite of next-generation business transformation tools - analytics, collaboration and cloud computing.

The JD Group (JDG) was 49 cents or 1.13% higher at 44 rand. Massmart (MSM) lost 34 cents to 135.46 rand. Woolies (WHL) was down 35 cents or 1.33% to 26 rand.

Astral (ARL) added 2.39 rand or 1.99% to 122.64 rand.

City Lodge Hotels (CLH) rose 1.60 rand or 2.46% to 66.60 rand. - I-Net Bridge

Source: http://www.iol.co.za/jse-a-tad-up-1.1043268

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