From stockhouse thread...
MARKET REPORT: SA
JSE zooms ahead on rand, resources
Alison Maltz
Posted Thu, 19 Aug 2004
The JSE zoomed to its highest close since April 13 on Thursday, fuelled by a weaker rand, high commodities prices and demand for resources stocks from offshore. The local bourse closed near its high for the day, despite a negative opening on US markets.
The all share index closed 1.81 percent stronger. Resources rose 3.24 percent, the gold mining index rocketed 5.2 percent and the platinum mining index surged 2.13 percent. Industrials and financials finished 0.96 percent and 0.54 percent firmer respectively, but the banks index eased 0.09 percent.
The rand, which traded below 6.50 earlier in the day, was quoted at 6.59 per dollar from 6.52 when the JSE closed on Wednesday. Gold was quoted at $406.73 an ounce from $402.55/oz at the JSE's last close.
On the all share index, 78 shares were up, 40 were unchanged and 42 were down. There were only seven decliners on the Top 40 index, while 25 shares advanced and nine-finished flat.
Analysis
A dealer said that a combination of factors had acted in concert to boost the JSE.
"Resources shares are very strong offshore and the weaker rand is an added bonus. We are seeing a lot of demand for our resources stocks from abroad," he explained.
He added that the gold price was higher and gold ADRs (American Depository Receipts) were very strong in New York.
"Over the month, resources are up just over 13 percent and have been a driving force," he asserted.
He noted that the JSE's gains came against the backdrop of a weaker opening on Wall Street, which came on concerns about a surging oil price.
Volumes were once again impressive, with about R3.5-billion worth of shares trading. The dealer said that derivatives activity, the fact that local institutions were underweight resources and offshore demand for these stocks had been boosting volume in recent days.
Share prices
On the JSE's upside, Anglo American advanced 2.54 percent to 151.40 rand. BHP Billiton jumped 3.75 percent to 63.60 rand.
AngloGold Ashanti soared 5.81 percent to 233 rand, Harmony rallied 5.73 percent to 82.31 rand and Gold Fields surged 4.72 percent to 80.90 rand.
Impala Platinum leaped 2.24 percent to 549 rand and AngloPlat strengthened 2.11 percent to 291 rand.
Sasol perked up 3.1 percent to 116.51 rand.
On the industrial market, Richemont jumped 2.5 percent to 16.40 rand and SABMiller strengthened 1.65 percent to 79.90 rand.
Services group Bidvest was 2.24 percent in the black at 57 rand, while steel producer Iscor soared 5.02 percent to 47.25 rand.
Retailer Woolies lost 1.16 percent to 7.67 rand.
On the financial front, banking group Nedcor rebounded 2.47 percent after touching a long-term low on Wednesday.
Old Mutual firmed 1.2 percent to 11.85 rand.
Niche banking group Investec also staged a recovery, with Investec Plc up 4.19 percent to 114.50 rand and Investec Ltd bouncing 3.3 percent to 113.01 rand.
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Last update 19-Aug-2004 18:42:00
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