JSE a tad higher‚ industrials lead
Johannesburg - The JSE was up slightly on Monday morning‚ with industrials and banks leading the gains and gold miners shedding value after a bit of a run on Friday.
At 09:37‚ the JSE All Share [JSE:J203] index was marginally higher adding 0.13% to 37 392.99 points‚ with the Top 40 - (tradeable) [JSE:200] index up 0.12%. The industrial sector gained 0.30%‚ while gold miners gave back 0.87%.
Eastern markets were trading mixed with the Japanese Nikkei closing 0.93% softer and the Hong Kong Hang Seng index a tad higher just before the close (0.14%) at 09:22 local time.
The state of the global economy was the focus this week‚ Rand Merchant Bank said in a morning note. “Eurozone third-quarter GDP (gross domestic product) data will be out on Thursday. Another mild contraction is expected‚ affirming an ongoing recession.
"Japanese figures over the weekend also showed a contraction‚ but this comes after a few quarters of decent growth‚” the bank said.
“It is not all bad news. Chinese figures in the past few weeks have shown a strong pickup. The risk of a hard landing has largely disappeared.
"US data has also been good‚ although after three false starts most of the market is weary about suggesting that the economy is finally entering a self-sustaining recovery. Watch data on Wednesday to Friday for more information‚” it added.
“Greece remains a concern. The country is unlikely to get its next aid tranche approved at today’s eurozone finance ministers’ meeting (Eurogroup)‚ raising questions on how it will repay the €5bn it owes to the European Central Bank at the end of the week‚” it added.
“Commodity prices are trading sideways after mixed data out of China over the weekend. While China’s oil imports rebounded after months of slowdown in October‚ copper imports were the lowest in 15 months.
"Oil is trading steady below $110/bbl‚ but downside looms for the copper price‚ which has erased nearly all of the recent gains. Copper fundamentals remain bearish as inventories in Chinese warehouses have more than doubled over the past year.
"Technical indicators point to short-term support at $7 350/tonne‚” the bank said.
Among local counters‚ Anglo American Platinum was 0.19% softer at R391.14‚ after the world's largest primary producer of platinum said on Monday it had raised its offer to end the eight-week strike at its Rustenburg‚ Union and Amandelbult mining operations.
Lonmin added 1.85% to R63.30 after shedding as much as 6% on Friday after announcing a $702m operating loss in the year to September.
Exxaro added 1.05% to R176.33 and Coal of Africa gained 1.56% to R1.95.
Compagnie Richemont added 1.51% to R59.30. On Friday the luxury goods company reported a 21% rise in sales to €5.106bn‚ or a rise of 12% at constant exchange rates for the six months to September‚ from the same period a year ago.
Among building counters‚ Group Five surged 6.06% to R28.00‚ while WBH Ovcon gave back 1.63% at R149.52.
Hulamin bounced 6.53% higher to R3.75.