[2008-10-14]  JSE follows world markets higher
THE JSE jumped 3.34% at the opening today in line with stronger overseas markets, which posted double-digit rises overnight and this morning in Asia.

The Dow closed up 11% yesteday, the Nikkei soared 14% and Hong Kong was up almost 3% this morning. In early trade in London, the FTSE was 4,4% firmer. The JSE all share index had gained 3,50%, led by a 4,22% jump in resources and a 4,51% surge in the platinum mining index. Financials collected

3,84% and banking stocks were up 3,81%, while industrials collected 2,54%.

However, the gold mining index was down 1,23%.

The rand was bid at R9,02 to the dollar from R9,17 when the JSE closed yesterday, and compared with levels close to R9,40 at the end of last week. Spot gold was last quoted at $844,65 a troy ounce from $833,15 when the

JSE last closed.

Platinum was trading at $1,034/oz from a previous close of $978,50/oz. "We have opened firmer, but the market is still a bit nervous," said a local equities trader. The trader added that the local market had closed up nicely on Monday and there has been a bit of follow through this morning. The JSE ended 4,16% higher

yesterday.

The rand has also strengthened quite a bit and that was limiting gains this morning, the trader noted. The trader added that players are adopting a wait and see attitude, with

eyes on Europe and the US opening later.

"We are seeing some follow through, but some are not entirely convinced. They are participating, but it’s not aggressive," the trader added. Dow Jones Newswires reports US stock futures are rising today, after

markets rocketed and the Dow Jones Industrial Average had its biggest point gain ever, rising more than 900 points. European government commitments to bank recapitalisation sent traders rushing into the market.

But some warned that yesterday’s rally felt almost as panicky and unsustainable as last week’s crash. "We can’t verify if Friday was the bottom, because of the bank holiday," said Art Cashin, head of floor operations at the NYSE for UBS Financial Services. "We’ll have to see if these rescue efforts reduce Libor."

Morgan Stanley rallied 87%. The Wall Street bank closed a deal to sell a 21% stake for US$9 billion deal to Japanese bank Mitsubishi UFJ Financial. Many believed that the historic firm’s survival hinged on the deal closing.

The US is set to buy preferred equity stakes in several top financial institutions as part of a broad effort to bolster the banking system. Not all of the banks involved are happy with the move, but agreed under pressure from the government. All told, the moves tie the banking sector to the federal government for years to come.

Japanese stocks soared today, with the benchmark Nikkei 225 Average climbing more than 14% as financials and exporters led an across-the-board rally after indices on Wall Street posted a double-digit surge overnight. Other Asian markets jumped as well, after governments around the world unveiled plans worth hundreds of billions of dollars to rescue banks.

Uwe Parpart, chief economist and Asia strategist at Cantor Fitzgerald Asia wrote in a note that the rallies in US, Europe and Japan "were large and convincing enough to point to some near-term market upside," but the markets

still "have to come to grips with deepening global recession, declining earnings and increasing corporate defaults."

On the JSE, Anglo American (AGL) added R17,50, or 6,86%, to R272,50 and BHP Billiton (BIL) was up R5,85, or 3,5%, to R172,80. Sasol (SOL) was up R14,49, or 5,57%, at R274,49. Among gold miners, AngloGold (ANG) was up R1,75 to R183, but Gold

Fields (GFI) lost R3,60, or 4,57%, to R75,25d and Harmony (HAR) fell R1,70, or 1,87%, to R89,45.

Platinum miner Anglo Platinum (AMS) advanced R35,55, or 5,69%, to

660.55 rand, while Impala Platinum (IMP) was up R5,85, or 3,90%, to R156 and Lonmin (LON) gained R10,60, or 3,96%, to R278,60. Kumba Iron Ore (KIO) added R5,20, or 3,91%, to R138,10, Exxaro (EXX) put on R2,70, or 3,97%, to R70,70 and ArcelorMittal (ACL) jumped R5,33, or 4,75%, to R117,45.

Among industrials, brewer SABMiller (SAB) was up R1,69, or 1,11%, to R153,69. Earlier the group reported 3% growth in lager volumes, with organic lager volumes marginally ahead of the prior year (up 1% in the second

quarter) for the six months ended September.

This reflects a high comparable (organic lager growth of 9%) and moderating consumer demand in many markets. Group revenue growth has been assisted by firm pricing, with revenue per hl at constant exchange rates growing in excess of 5%, and this has continued to offset the impact of higher input costs, the group said in a trading update.

Bidvest (BVT) was up R4,10, or 4,16%, to R102,60 and AECI (AFE) added three rand, or 5,36%, to R59. Among banks and financials, Old Mutual (OML) was up 84 cents, or 7,60%, to R11,89.

Banker Standard Bank (SBK) was up R3,20, or 4,16%, to R80,20, Nedbank (NED) added R1,87, or 1,97%, to R96,87 and Absa (ASA) rose R5,17, or 5,21%, to R104,47. Telecommunications group MTN (MTN) was up R3,29, or 3,19%, to R106,30 and Telkom (TKG) gained R2,40, or 2,18%, to R112,50.
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.