The JSE racked up more than 320 points by midday on Wednesday, trading above 30,000 points amid further signs that the US Federal Reserve will implement quantitative easing measures soon.
I-NET BRIDGE
Published: 2010/10/13 01:28:08 PM
The JSE racked up more than 320 points by midday on Wednesday, trading above 30,000 points amid further signs that the US Federal Reserve will implement quantitative easing measures soon.
This news put the dollar under further pressure, spurring global equity markets and lifted commodity stocks in particular.
By noon local time the JSE all share index was 1.09% firmer, with platinum miners 1.32% higher and resources gained 1.57%. Gold stocks declined 0.45%.
Industrials garnered 0.78%, financials were 0.73% to the good and banks profited 0.91%.
The rand was bid at 6.81 to the dollar from 6.86 at the JSE's close on Tuesday.
Gold was quoted at US$1,360.47 a troy ounce from US$1,347.20/oz at the JSE's previous close, while platinum was at $1,701.50/oz from $1,686.00/oz before.
A local trader said: "Commodities lifted the JSE All Share above 30,000 points, following confirmation that a second round of quantitative easing is likely to take place in the US. That news put the dollar on the back foot, and helped equity markets, with commodities in particular rising.
"Intel's results came out better than expected, while JP Morgan's results will be eagerly anticipated in the US."
Dow Jones Newswires reported that US stocks were expected to start positively Wednesday, following the rise in European equity markets. There was still some positive momentum after the FOMC meeting minutes, which suggested further quantitative easing could be on its way. Also, Joshua Raymond at City Index noted that Intel results were positive, which could help the upside. Raymond warned to keep an eye out for 3Q earnings from JPMorgan, released before the open of Wall Street. He said that disappointing results could knock US futures.
European stocks continued to extend gains as hopes of further quantitative easing by the Fed bolster the market's confidence and local data show euro zone production rose in August.
Asian stock markets ended mostly higher on Wednesday, with the Japanese market getting a lift from a surprise rise in machinery orders data.
Japan's Nikkei Stock Average was up 0.2%, South Korea's Kospi Composite was up 0.4%, China's Shanghai Composite Index added 0.3%, and Hong Kong's Hang Seng Index was 0.3% firmer.
On the JSE, Anglo American added R9.02 or 3.02% to R308.012, Sasol gained R1.61 to R318.71, and BHP Billiton firmed R4.35, or 1.87% to R236.63.
Among gold miners, AngloGold Ashanti shed a rand to R319, but Gold One International added 24 cents or 10.21% at R2.59.
The group said that gold production for the September 2010 quarter amounted to 19,470 ounces - a 58% increase from the June 2010 quarter total of 12,287oz. This was in line with guidance provided of between 18,000 and 20,000oz. The company said the build-up in production levels at Modder East continues to steadily increase. September was another record month with group monthly gold production of 7,482oz, which amounts to an annualised production rate of approximately 90,000oz. Recovered grades at Modder East increased from 6.44 g/t in the June quarter to 6.78 g/t in the September quarter, while metallurgical recoveries were maintained at 96%.
Gold production for the December 2010 quarter is expected to reflect further increases as additional mining panels become available and associated volume throughput steadily increases, it added.
Anglo Plat pocketed R8.18 or 1.17% to R706.18, Impala Platinum found R2.78 or 1.46% to R193.28, Lonmin was R3.66 or 1.89% higher at R197.26, and Aquarius picked up 141 cents or 3.58% at R40.85.
Iron ore producer Kumba firmed R8.57 or 2.26% to R388.07, and diversified miner Exxaro gained 130 cents or 1.04% to R126.70, along with African Rainbow, R1.79 or 1.02% to the good at R176.79.
Assore profited R2.49 or 1.6% at R157.99.
Among industrials, SABMiller profited R1.56 at R224.10, and Imperial was R2.24 or 2% better off at R114.24.
TigerBrands grew R1.02 at R186.19.
Telecommunications group MTN garnered R1.73 or 1.35% at R129.48.
Banking group Standard Bank advanced R1.32 or 1.23% at R108.61, ABIL was 54 cents or 1.52% richer at R36.05, and Santam found R1.75 or 1.56% at R113.90.
Health insurer Discovery added 52 cents or 1.34% at R39.38.
Retailer Lweis climbed 88 cents or 1.27% higher to R70.38, Mr Price firmed 71 cents or 1.32% at R54.70, and Spar was 190 cents or 1.01% richer at R90.10.
Construction group Murray & Roberts moved 97 cents or 2.26% higher to R43.90, and Cashbuild marched R3.98 or 4.79% higher at R87.
Media giant Naspers rose R3.75 or 1.05% to R359.25, and Avusa bagged 50 cents or 2.27% at R22.50.
International information communications technology company Datatec was 49 cents, or 1.42% firmer at R34.99.
Datatec on Wednesday reported diluted headline earnings per share of 8.7 US cents for the six months ended August 2010 from 4.8 cents a year ago.
Underlying EPS - excluding goodwill and intangibles impairment, amortisation of acquired intangible assets, profit or loss on sale of assets and businesses, fair value movements on acquisition related financial instruments and unrealised foreign exchange movements - were up 37% to 15.8 US cents.
The group's revenue was up 19% to US$2.13 billion, with organic growth at 14% and overall gross margins remained stable at 13.2%.
