[2008-08-07]  JSE ends firm as platinum shares surge
THE JSE ended sharply higher yesterday, led by platinum miners on merger and acquisition news in the sector and a rebound in metal prices, traders said.

However, traders said poor results from blue chips Liberty International (LBT) and Old Mutual (OML), a stronger rand and a weaker opening on Wall Street capped further gains.

The all share index ended 2,02% higher, with platinum miners up 11,81%. Resources surged 4,41% and gold miners gained 0,53%. Banks fell 0,49%, financials lost 1,87%, but industrials gained 0,85%.

“Commodity stocks are having a field day here on Lonmin and Xstrata news,” one trader said. He said that a slight rebound in commodity prices was also helping sentiment.

Shares in Lonmin (LON) jumped 49,15%, or R163,19, to R495,19. Other platinum shares rose partly in sympathy and on the rebound in the white metal price.

Anglo Platinum (AMS) rose 7,55%, or R67,22, to R957,22 and Impala Platinum (IMP) surged 9,52%, or R20, to R230.

On the resource index, Anglo American (AGL) was up 5%, or R19,40, to R407,50 and BHP Billiton (BIL) rose 3,87%, or R8,47, to R227,47.

Sasol (SOL), the maker of motor fuels from coal and gas, climbed 2,05%, or R7,99, to R397,99.

Among gold miners, AngloGold Ashanti (ANG) lost 50c to R230,50, but Gold Fields (GFI) gained 2,05%, or R1,51, to R75.

In earnings news, UK-based property group Liberty International (LBT) fell 5,56%, or R7,75, to R131,65.

Life insurer Old Mutual (OML) slumped 10,41%, or R1,60, to R13,77.

“Old Mutual came out with results this morning, clearly they were not well received. I think it reflects concerns over its US operations,” one trader said.

Banking group Nedbank (NED) inched up 35c to R104,35.

Elsewhere, SABMiller (SAB) rose 95c to R160,80, Imperial (IPL) was 90c, or 2,06%, better at R44,50 and Tiger Brands (TBS) was up 2,53%, or R3,84, at R155,49.

It was all about platinum on the South African near-dated futures market yesterday as an Xstrata bid for Lonmin and a positive trading update from Impala added plenty of grist to the trading mill.

The near-dated Alsi contract ended 2,50%, or 614 points, in the green at 25220.

A total of 58187 Alsi contracts changed hands compared with 56523 on Tuesday, a Safex official said.

“The main factor today was Xstrata’s bid for Lonmin, which brought about a re-rating of platinum stocks across the board,” Neville Lahner of Afrifocus said.

He said this offer came in at a 42% premium to the share price and hence all the interest being sparked.

He also said that Impala’s trading statement had then helped to further push the entire platinum index.

“We also had a great Dow and the rand was a little weaker,” Lahner said.

South African white maize futures ended up yesterday , breaking a three-day losing streak driven by the weaker rand. “We saw a bit of bargain hunting, mainly on the back of the weaker rand,” a trader said.

The rand, which, when weak, makes exports cheaper, fell in a corrective pattern after a recent rally.

The September white maize contract closed R43 higher at R1777 a ton, December rose R39 to R1860 and the August contract — which trades without limits because it’s in delivery — rose R101 to R1752.

Dow Jones Newswires reported that Chicago Board of Trade (CBOT) maize futures continued their slide on Tuesday, with the market unable to sustain a rally on short covering and support from wheat, traders said.

September maize ended down 10¼c to $5,25¼ a bushel, December maize ended down 10½c to $5,45 and March maize ended down 11c to $5,64.
Source: Copyright © 2005 BDFM Publishers (Pty) Ltd.