JSE ticks up as gold miners recover

Johannesburg - South African shares ticked higher on Friday as battered down stocks such as telecom MTN Group [JSE:MTN] and safe-haven gold miners recovered ground.

Johannesburg’s bourse also received a boost from the positive sentiment generated by better-than-expected US job data that underpinned hopes that the world’s biggest economy is firmly on the recovery path.

“Some of the shares were oversold yesterday and we saw them rallying earlier this morning,” said Velele Nkosi, a dealer with BJM Securities.
“There are still lingering concerns over European debt that is why there was a bit of dampener yesterday.”

The Top 40- (Tradeable) [JSE:J200] index recouped 0.52% to 29 209.60, after a 1% drop in the previous session that was its first decline of 2012. In its first week of trading for the year, the index rose 2.6% after booking a 0.6% decline in 2011.

The broader All Share [JSE:J203] index rose 0.46% to 32 749.57.

US employment data helped to boost Johannesburg-listed stocks after the jobless rate booked a surprise fall to 8.5%, its lowest since February 2009. Stocks that were the worst decliners in Thursday’s trade, such as MTN, staged the biggest rebounds.

MTN, Johannesburg’s fourth-largest company by value, recouped some recent losses to close up over 3% at R136.25 after falling more than 8% in the last four sessions.

Shares of Africa’s largest telcom firm plunged to R136.02 on Thursday, or to a price earnings ratio of 15.6 times that was last seen in late October, on concerns over the impact of Western sanctions’ on the economy Iran, a key market for MTN.

Bullion producers Gold Fields and Harmony also recovered as risk aversion started to creep back into markets. Spot gold rose as much as $1 631.06 per ounce in Friday’s trade.

Gold Fields, South Africa’s second-biggest miner of the precious metal, gained 2.8% to R129 rand while smaller rival Harmony added 2.5% to R98.75.