Market gets a lift from weaker rand
September 22, 2006
By Tiisetso Motsoeneng
Johannesburg - The JSE steamed ahead on Friday morning boosted by the weaker rand and stronger commodity prices.
By 9.18am, the all share added 0.93 percent. Resources gained 2.95 percent and the gold and platinum mining index climbed 2.21 percent and 2.58 percent respectively. The all share industrial index lost 0.47 percent, with the financials falling 0.58 percent and the banks index tumbling 2.52 percent.
The rand was bid at 7.62 per dollar from 7.51 when the JSE closed on Thursday's. Gold was quoted at $587.10 an ounce from $579.65 at the JSE's last close.
"The big driver today is definitely the rand, and some commodity prices," a dealer said.
"If you look at the way the market is trading, the activity is definitely driven by the rand. All the world markets are down, but the JSE is steaming ahead on the rand hedges," he said, adding that he expected the trend to continue throughout the morning.
On the resources index, London-listed Anglo American (AGL) surged 3.69 percent or R11.39 to R320.00 and BHP Billiton (BIL) surged 4.52 percent or R5.84 to R135.00.
Synthetics fuels group Sasol (SOL) firmed 0.70 percent or R1.65 to R236.15.
Gold Fields (GFI) jumped 3.22 percent or R4.23 to R135.44, AngloGold Ashanti (ANG) strengthened 1.59 percent or R4.60 to R294.50 and Harmony (HAR) was 1.98 percent or R1.79 to R92.30.
Impala Platinum (IMP) leaped to 3.72 percent or R45.00 to R1 255. AngloPlat (AMS) was up 1.71 percent or R13.05 to R776.05.
On the industrial index, Swiss-listed luxury goods group Richemont (RCH) rallied 1.69 percent or 60 cents to R36.20. It earlier touched R36.38 - a record high, but London-listed brewer SABMiller (SAB) weakened 94 cents to R145.
Pulp and paper producer Sappi (SAP) slipped 1.49 percent or R1.44 to R95.41.
Services group Bidvest (BVT) dropped 2.23 percent or R2.51 to R109.99.
Cellular network operator MTN Group lost 45 cents to R62.
Retailer Pick 'n Pay (PIK) lost 20 cents to R29.40.
Massmart (MSM) surrendered 1.35 percent or 75 cents to R54.70.
On the financial front, London-listed Old Mutual (OML) firmed 1.5 percent or R5.52 to a lifetime high of R23.70, but Sanlam (SLM) was down 1.51 percent or 25 cents to R16.30.
Nedbank (NED) was down 3.01 percent or R3.10 to R112, Absa (ASA) lost 1.79 percent or 50 cents to R99.90, FirstRand (FSR) fell 2.72 percent or 50 cents to R17.90 and Standard Bank (SBK) was 2.75 percent or R2.21 in the red at R78.30.
AFX reports that Wall Street fell sharply Thursday after the Philadelphia Federal Reserve surprised investors by announcing that its broadest measure of manufacturing activity fell to a negative reading for the first time since April 2003, renewing investor fears that the economy could be cooling too quickly.
The Philadelphia Fed said its index of current activity fell from 18.5 in August to negative 0.4 this month. The regional bank said indicators for general activity, new orders and shipments fell substantially from August and suggested no growth for September.
The Dow Jones industrial average fell 79.96, or 0.69 percent, to 11 533.23. Early in the session, the Dow's level had put it little more than 100 points away from its all-time high of 11 722.98 reached in January 2000.
Broader stock indicators also fell.
The Standard & Poor's 500 index, which reached a five and a half year high Wednesday, fell 7.15, or 0.54 percent, to 1 318.03 and the Nasdaq composite index fell 15.14, or 0.67 percent, to 2 237.75. - I-Net Bridge
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