[2008-02-19]  JSE cashes in on banks and financials
THE banking and financial sectors injected some life into the JSE yesterday, helping it recover from Friday’s losses of almost 2%. The JSE went on its own steam yesterday as Wall Street was closed for a public holiday.

The overall index ended 1,8% higher, led by a 2,62% advance in the banks index. Financials rose 2,02%, resources climbed 2,21% and the gold mining index was up 1,43%. The platinum mining index collected 1,32% and industrials ended 1,08% in the black.


One trader said there was good sentiment across the bourse, with most stocks in the black. “Banks have really rallied today after they were hit quite hard on Friday.”

“The UK market is also firm after ending weak on Friday because of bank shares, and the recovery in banks and financials there drove our stocks higher,” a trader said. He also said that a couple of stocks were looking pretty good after positive trading updates and results were released earlier during the day.

“Group Five is looking very good.,” he said. Construction counter Group Five’s share price advanced 3,79% to R49,30.

“The construction sector has really come back to life. Murray and Roberts about mid-week last week was at R83, and today they closed at R96,51,” the trader said. BHP Billiton increased 3,29% to R240, Anglo American was 2,88% higher at R462,94 and Sasol edged up R2,10 to R378. Exxaro shot up 5,16% to R99,90.

Gold miner AngloGold Ashanti recovered R1 to R258 and Harmony improved 2,64% to R80,06.

Platinum producer Anglo Platinum collected 3,97% to R1179, but Impala Platinum shed R1 to R310.

Ceramic Industries’ share price continued to fall from Friday’s loss of 21,98%. Yesterday its share price dipped 10,9% to R98,01. PPC ended 6,74% in the black at R41,80. Among financials and banks, RMB Holdings picked up 3,5% to R26,65, Absa gained 1,95% to R104,50 and Standard Bank lifted 4,49% to R93.

The JSE’s share price ended 3,29% firmer at R63,50.

Insurance group Discovery strengthened 6,04% to R24,40, life assurance group Old Mutual added 3,98% to R18,80 and Sanlam gained 1,34% to R18,90.

The country’s biggest short-term insurer, Santam lo st 4,37% to R84,61.

South African near-dated stock futures ended rallied yesterday led by banks, which were recovering from oversold positions. The near-dated Alsi contract ended at 2,12%, or 559 points, firmer at 26922. Banks were among the top gainers ahead of Absa’s year-end earnings today , and recovering from oversold positions on Friday. Traders said banks were about 20% below the peak achieved last October, suggesting that the upside momentum was not over.

“Europe is up, that is adding a bit of support, and the guys seem indifferent that Wall Street is closed today," one trader said. A total of 21092 Alsi contracts changed hands compared with 30897 contracts on Friday, a SAFEX official said.


South African wheat futures pierced through the record R4000 a ton level for the first time on yesterday, but pulled back to end just shy of the level. The most active wheat for March delivery contract gained R34 to R3910 a ton — after earlier hitting a R3930 a ton — and July wheat gained by the same margin to R4006 a ton.

“The supply situation is very bad. Australia, America and Europe are increasing plantings in the next season but the demand is too strong,” one trader said.

The market is on a buying frenzy, having gained nearly 50% in the past seven weeks as global wheat inventories head toward 30-year lows, while production is unable to keep up with demand.

Dow Jones newswires reported US wheat futures closed mixed on Friday, as the nearby Minneapolis grain exchange contract notched another new record high amid ongoing concerns about tight spring wheat supplies, traders said. I-Net Bridge

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