[2008-07-25]  Banks still in favour, JSE a tad higher
THE JSE ended slightly higher yesterday, rising for the second day running with banks remaining in favour, but the overall index ended off the session’s best on weak sentiment in overseas markets, traders said.

The all share index ended 0,21% higher, thanks to a 3,34% jump in banks, a 1,14% rise in financials and a 1,25% gain in industrials. However, resources fell 0,89%, the platinum mining index was down 2,03% while the gold mining index was flat (-0,01%).


“The whole CPIX reweighting and rebasing from next year is one of the major catalysts for a rebound in our banking sector because it improves the inflation outlook,” one trader said, and investors had expectations of monetary relief from next year.


On the JSE, banking group Standard Bank (SBK) rose R3,49, or 4,11%, to R88,49, Absa (ASA) was up R3,75, or 3,91%, to R99,75, while RMB Holdings (RMH) added 114c, or 4,80%, to R24,89.

On the resource index, resources giant Anglo American (AGL) was off 9c at R410,41 and BHP Billiton (BIL) declined R5,39, or 2,22%, to R237,61. Sasol (SOL) was up R2,50 to R387,50.

Kumba Iron Ore (KIO) was up R3, or 1,31%, at R232 after it reported an increase in its first-half diluted headline earnings per share from R5,02 last year to R8,75 for the six months to end-June this year.

Gold miner AngloGold Ashanti (ANG) fell 74c to R250,26, Harmony (HAR) weakened R1, or 1,25%, to R79, but Gold Fields (GFI) firmed R1,25, or 1,40%, to R90,60.

Among platinum miners, Anglo Platinum (AMS) was down R23, or 2,43%, at R925 and Impala Platinum (IMP) shed R4, or 1,72%, to R228. Aquarius Platinum (AQP) was off R2,98, or 3,59%, at R80,05.

Among industrials, brewer SABMiller (SAB) shed 72c to R166,77 and Richemont (RCH) added 103c, or 2,28%, to R46,15.

Super Group (SPG) declined 53c, or 11,78%, to R3,97. The logistics firm said late on Wednesday that due to “errors and possible fraud” at some of its businesses it might revise last year’s results downwards.

South African near-dated futures ended sharply lower yesterday, erasing earlier gains after a weak start on Wall Street and sustained weaknesses in commodity prices, traders said.

Strong gains were restricted to some banking stocks and financials on hopes of monetary easing from next year, and continued bargain-hunting following months of downward trend in the sector, traders said. The near-dated Alsi contract closed 283 points, or 1,10%, lower at 25410. A total of 30124 Alsi contracts changed hands from Wednesday’s 53583 contracts, a Safex official said.

South African white maize futures ended a touch higher yesterday, breaking an eight-day losing streak, following overnight gains in the US markets, while a slightly weaker rand added to the upbeat mood, traders said. But traders said the market was in cautionary mode ahead of the crop estimates committee production forecast, which was due out later that afternoon.

September white maize was last up R23 at R1829 a ton and December added R16 to R1902.

“It was most probably on the rand and the after-hours electronic trading session in Chicago,” a trader with a major bank said. Jitters ahead of SA’s crop estimates committee’s latest production estimates further kept the mood damp, traders said.

An average estimate of traders polled by I-Net Bridge expected the committee to lift its output forecast to 11,75-million tons from 11,6-million tons, with most traders saying the final production was likely to reach 12-million tons.

In overnight trading on the Chicago Board of Trade, September maize was last up 9½ c to $581 a bushel and December was up 9¼ c to $599, Dow Jones Newswires reported.

Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.