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JSE edges higher in cautious trade

Jul 23 2010 19:42

Company Data

Anglo American Plc [JSE : AGL]

Last traded R342.29
Change R9.69
% Change 2.91%
Cumulative volume 2.28m
Market cap R459.67bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Anglogold Ashanti Ltd [JSE : ANG]

Last traded R349.50
Change R0.86
% Change 0.25%
Cumulative volume 1.10m
Market cap R133.60bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Lonmin P L C [JSE : LON]

Last traded R127.02
Change R2.29
% Change 1.84%
Cumulative volume 283,386
Market cap R25.70bn

Last Updated: 13/02/2012 at 19:33. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - South African stocks edged higher on Friday in cautious trade ahead of European stress test results while the rand hovered near three-month highs against the dollar after the central bank decided not to cut rates the previous day.

The JSE top-40 index of blue chips rose 0.56% to 25 333.32, its highest close since May 4 while the broader all-share index inched up 0.53% to 28 424.17.

"There's caution in the market ahead of these bank stress tests in Europe," said Martin Lentsoane, a trader at Johannesburg-based NEWS Trading.

"Some of these results will come out while our market is closed, so the guys don't want to commit too much ahead of that."

Technicals showed the All-share index, which gained nearly 3% on the week, might struggle in coming days. The index's slow stochastic - a measure of how oversold the market is and whether it is in a short-term up or down trend - is above 70 while its 14-day relative strength index, or RSI, is around 66.

Traders who use these gauges of momentum usually consider a stock to be overbought when its slow stochastic and RSI hit the 80 and 70 mark, respectively.

Platinum miner Lonmin [JSE:LON] jumped 2.43% to R175.15, a day after the company reiterated its full-year sales guidance.

Diversified miners also gained as industrial metal prices strengthened with copper rallying to its strongest level in two months, boosting Anglo American [JSE:AGL] shares by 1.72% to R288.37.

But gold miners kept the index's upside move in check after the bullion price fell, with AngloGold Ashanti [JSE:ANG] sliding 1.65% to R297.

At 17:55, the rand was at 7.4339, little changed from Thursday's close at 7.4325 but still near a session high of 7.40, the currency's strongest level since May 3.

"This week the rand has been the strongest performing emerging market currency, along with the Chilean peso and the Brazilian real. Part of that was after the rates decision we saw yesterday," said RBS emerging market strategist Imran Ahmad.

The central bank left its repo rate at 6.5% on Thursday, in line with economists' forecasts, although financial markets had priced in a slight chance of a 50 basis point cut to help the economy shake off last year's recession.

Ahmad said that while the risk appetite picture remained hazy as markets awaited the stress test results, investors had largely come to terms with the view that global economic recovery from last year's recession will not be robust.

"Generally the market has become more and more comfortable with a global slowdown but no global double-dip. I think markets are taking comfort in that growth may be slowing but it's not falling off the cliff edge," he said.

Government bonds extended Thursday's decline following the central bank's rate decision. The yield on the benchmark 2015 bond rose 9 basis points to 7.76% while the yield on the 2036 bond increased 2 basis points to 8.835%.

- Reuters

 
 
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