[2008-10-08]  JSE higher on world markets
STOCKS ended higher yesterday, staging a recovery from yesterday’s plunge as overseas markets rebound, while firmer metals prices spurred a fresh round of buying for mining stocks, traders said.

“We’re trying to find some stability here. It’s not a complete recovery from yesterday’s hammering but it’s a step in the right direction," one Johannesburg-based trader said.

Rallying metal prices, with gold climbing by more than 2% on continued safe haven-inspired gains and the softer dollar, helped lift a selection of the badly beaten down mining stocks higher, traders said.

The all share index ended 2,56% higher, thanks to a 3,27% rise in resources. The platinum mining index rallied 3,57%, but the gold mining index fell 0,96%.

Banks added 1,69%, industrials gained 2,15% and financials firmed 1,97%.

Anglo American (AGL) gained R14,32, or 6,08%, to R249,80 and BHP Billiton (BIL) was up R9,25, or 5,69%, to R171,81.

Petrochemical giant Sasol (SOL) lost R5,50, or 1,97%, to R273.

Among gold miners AngloGold (ANG) was down R6,44, or 3,83%, to R161,81, Gold Fields (GFI) fell 53c to R66,97 while Harmony (HAR) was up 71c to 73,71.

Platinum miner Anglo Platinum (AMS) was up R37, or 6,79%, to R582, Impala Platinum (IMP) gained 150c, or 1,17%, to R130 and Lonmin (LON) was up R15,95, or 6,54%, to R259,95.

Financial services group Old Mutual (OML) inched up 8c to R11,55 while Sanlam (SLM) was up 80c, or 4,94%, to R17.

Banker Nedbank (NED) gained R2,70, or 3%, to R92,70 FirstRand added 39c, or 2,64%, to R15,14.

Elsewhere on the JSE, brewer SABMiller (SAB) soared R12,60, or 8,57%, to R159,60 and Tiger Brands (TBS) climbed 519c, or 3,79%, to R142,19.

Among telecommunications groups, MTN (MTN) was up R1,25, or 1,23%, to R102,50 and Telkom (TKG) came off 149c, or 1,41%, to R104.

Technology company Altron (ATN) was down 200c, or 6,56%, to R28,50. The company reported a 16% rise in diluted adjusted headline earnings per share to 179c for the six months ended August from 154c a year ago.

Diluted heps for the period were up 12% at 171c from a previous 152c.

Near-dated futures ended firmer yesterday after global markets received a shot in the arm from the announcement by the US Fed that it was launching a new funding facility to purchase commercial paper from eligible issuers.

The near-dated Alsi contract ended 375 points, or 1,92%, higher at 19900. On Monday it ended 5,71% lower. A total of 78096 Alsi contracts changed hands, compared with 69142 on Monday, a Safex official said.

White maize futures ended lower yesterday, following international markets after trade on the Chicago Board of Trade (CBOT) closed limit down on Monday.

Traders say that there is nothing fundamental driving the market at the moment, “markets are just moving on the nervousness coming from the unstable financial markets", a grains trader said.

“Markets around the world are in panic mode," the trader said.

He said that there was still a lot of negativity and nervousness in the market. “With the financial instability still looming, people are reluctant to buy and they hold on to stocks," he said.

“People are just taking their cash out of the markets, regardless of which markets it is," he said.

The December white maize contract fell R49 to R1727/ton.

March maize was down R50 to R1805 and in-delivery October maize lost R21, so falling to R1680/ton.
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Among other grains, December wheat lost 72 rand to 2,881 rand per ton, March wheat fell 72 rand to 2,975 rand and October wheat was flat at 2,960 rand.

Just after local markets closed the rand was at 8.81 to the dollar, from 8.72 on Monday.

Dow Jones Newswire reports that concern about the global economy and plunging equities overwhelmed CBOT corn futures, which ended limit down on Monday. "We’re getting to the point now where we’re below production costs.

It’s crazy," a trader was reported as saying.

Traders said they are unable to predict a bottom in the market because of an outside environment that one trader called "scary and different".

Funds continued to liquidate throughout the commodity sector, traders added.

December maize ended down 30 cents to US$4.24 per bushel, and March maize ended down 30 cents to US$4.42 1/2. Corn was trading synthetically around US$4.12-US$4.13 at the close, traders said. Tuesday’s trading limit will be an expanded 45 cents.

The following are the mark-to-market prices for maize, wheat, sunflower and soya bean contracts on SAFEX at 12:00 local time: Dow Jones Newswires reports that an early rally in major US stock indexes stirred by the Federal Reserve’s efforts to unfreeze corporate lending faded on Tuesday as some financial stocks remained under pressure.

The Fed’s move to intervene in the commercial-paper market, which companies use to secure short-term financing, could help ease that strain.

That market has seized up in recent weeks as investors have grown increasingly reluctant to put their funds in anything but the safest, most liquid investments.

Fed data showed that the U.S. commercial-paper market shrank a record $94.9 billion in the week ended Oct 1 to $1.61 trillion in outstanding debt, following a $61 billion decline the week before.

Financial institutions are grappling with "a sharp pullback by investors, (and) also continue to experience a strong flight-to-liquidity," with lenders parting with cash for shorter and shorter periods, said J.P.

Morgan research analysts in a report over the weekend.

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