[2008-08-28]  Financials lead market higher after CPI data
STOCKS ended in the black yesterday with banks and financials leading the charge after consumer inflation data for June came in broadly in line with expectations.

Resources also picked up during the afternoon session, with a rebound in commodity prices.

Resources giant Anglo American (AGL) added R10,01, or 2,48%, to R413, and BHP Billiton (BIL) gained R3, or 1,25%, to R243,50.

Synthetic fuels maker Sasol (SOL) also collected R3 to R417.

Gold miner AngloGold Ashanti (ANG) gained a healthy R4,80, or 2,34%, to R209,80, with Gold Fields (GFI) up R4, or 5,80%, at R73.

Among platinum miner Anglo Platinum (AMS) was R15,01 to the good at R940 while Impala Platinum (IMP) added R8, or 3,69%, to R225.

Mobile carrier MTN firmed R2,01 to R114,01, while Telkom (TKG) was R1,75 in the black at R137.

Telkom said on Tuesday that talks were continuing with a consortium that is considering making an offer for the fixed-line telephone operator.


Brewer SABMiller (SAB) lost R2,95, or 1,8%, to R160,90 and Richemont (RCH) dipped by 50c, or 1,13%, to R43,70. Remgro (REM) eked out 180c to R186,05.

Banking group Standard Bank (SBK) collected R3, or 3,53%, to R88 and Nedbank (NED) gained a healthy R3,79, or 3,74%, to R105. Absa (ASA) added R3,22, or 3,14%, to R105,90, while FirstRand (FSR) gained 86c, or 5,64%, to R16,10.

Short-term insurer Santam (SNT) slipped 5c to R74,95. Bemoaning a challenging first six months of 2008, Santam yesterday reported an 89% drop in diluted headline earnings per share from 793c to 88c for the half-year.

The group said that from an underwriting perspective, growth and underwriting profit in southern Africa were satisfactory. Overall earnings for the group, however, were well below the 2007 levels, mainly attributable to poor investment results.

Construction group Murray & Roberts (MUR) gained R5,90 or 6,11% on the day to R102,50. The company earlier reported a 69% jump to 550c in diluted headline earnings per share for the year ended June, beating an I-Net Bridge consensus forecast of 504,5c from nine analysts. A final distribution of 119c was declared, up 68% on the year.


White maize futures ended virtually unchanged yesterday, ignoring weaker trade on the Chicago Board of Trade (CBOT). “There is nothing much really happening but our market followed CBOT today," a trader said.

The December white maize contract gained R5 to R2001 per ton; March was up R3 at R2080; and September maize, which will be in delivery next month, was up R5 at R1916.


The 2007-08 maize output forecast was raised by 400000 tons yesterday to 12,02-million tons. The area for crop was unchanged at 2,8 -million hectares, according to a survey conducted by agriculture department’s crop estimates committee.

The trader said that for about the next two or three months our markets would be quiet and would follow CBOT and the currency.

Dow Jones Newswires reports that maize (corn) futures on CBOT ended lower in a day characterised by “pockets of extreme quietness", a trader said.

A stronger dollar was a key behind the falling prices, as corn and other commodities fell despite higher crude oil, traders said. The market had limited fundamental support from a crop that was behind schedule and in a lot of places needed rainfall, they said.

An analyst said the market was looking at the weather forecast for signs of rainfall or an early frost.

September maize ended down 5c at $5,7524 per bushel, December maize ended down 6c at $5,94, and March maize ended down 6c at $6,1350.

I-Net Bridge



Dow Jones Newswires reports that US stocks moved higher yesterday, as investors looked favourably on data showing surprisingly strong orders of big-ticket goods throughout the US economy. However, the industrial sector, which will suffer from increased production costs if fuel remains expensive in the months ahead, was the biggest laggard, off 0,5%.

The consumer-discretionary sector, which tends to suffer when high pump prices threaten to divert spending on other goods, slipped 0,3%. Crude futures jumped $2,55 to trade near $119 a barrel in New York on concerns that Tropical Storm Gustav may disrupt operations in the Gulf of Mexico, home to a quarter of US crude production.

In economic news, orders for durable goods increased 1,3% last month to a seasonally adjusted $219,26bn, the Commerce Department said.

Some of the jump was due to stronger demand for aircraft but, even excluding transportation sector bookings, all other orders rose 0,7%.

Traders also digested fresh comments from Federal Reserve Bank of Atlanta President Dennis Lockhart, who predicted in a speech yesterday morning at Georgia State University’s business school that inflation would ease in coming months, calling recent price rises “more likely to be transitory than persistent."

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