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JSE firms on metal stocks

Feb 02 2010 17:58

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Johannesburg - South African stocks ended firmer on Tuesday, led by metal and commodity stocks, breaking a downward trend on that sector following an overnight jump in metal prices.

By 17:00 the JSE all share index was 1.23% higher, with resources up 2.79%, gold miners adding 2.18% and platinum miners collecting 4.71%. Banks however, lost 0.39%, financials dropped 0.14%, but industrials moved up 0.31%.

The rand was bid at R7.48 to the dollar from R7.55 when the JSE closed on Monday. Gold was quoted at $1 111.24 a troy ounce from $1 087.89 at the JSE's last close, and platinum was at $1 560/oz, from $1 544/oz at the bourse's previous close.

A local equities dealer said: "We saw a jump in metal prices overnight which has helped to turn local metal stocks around, along with a slew of positive international economic data. At long last the downward trend on commodities has been broken.

"The dollar is weaker, but I don't think that will last."

Dow Jones Newswires reports that US stocks opened slightly positive on Tuesday, as strong earnings and analyst rating upgrades helped lift sentiment.

The Dow Jones Industrial Average was up 19 points, or 0.2%, at 10204 in early trading.

The Standard & Poor's 500-shares index was up 0.2%, led by its industrials and energy sectors. Utilities and consumer staples weighed on the measure. The tech-heavy Nasdaq Composite was down 0.1%.

Financial regulation will likely grab the spotlight again on Tuesday, as former Federal Reserve chairperson Paul Volcker is slated to testify before the Senate Banking Committee. Volcker is expected to press for restrictions on banks' proprietary trading, in line with President Barack Obama's proposal last week.

Upheaval among print media companies continued, with Barnes and Noble surging 13% after billionaire Ron Burkle suggested he wants to own more than a third of the book retailer and criticised investment restrictions set up by the company.

Still to come, pending home sales figures will be released later.

- I-Net Bridge

 
 
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