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May 27 2012 11:21
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May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - The JSE ended in the black on
Wednesday pushed by positive company earnings in the US, particularly Wells
Fargo.
At 17:00 the JSE all share index had edged 0.46% higher, with gold
miners flat, up 0.04%, but resources lost 0.16%, and platinum producers
eased 0.92%.
Banks collected 1.88%, financials were up 1.40% and industrials edged up
0.64%.
At 16:50 the rand was bid at 7.36 to the dollar from 7.35 just before
the JSE closed on Wednesday. Gold was quoted at $1 060.30 a troy ounce
from $1 055.17/oz just before the JSE's last close, and platinum was at
$1 361/oz, from $1nbsp;344.50/oz at its previous close.
A local trader said: "We had a dip in the market this afternoon, which
then perked up not long before close. The catalyst was predominantly Wells
Fargo's earnings in the US, which also saw positive earnings from American
Express and JPMorgan.
"Wells Fargo, however shot out the lights so to speak, lifting
international markets because of its consumer effect. Commodity prices also
lifted, while there are only a few soft spots in resources," the trader
said.
Dow Jones Newswires reports that US stocks traded higher on Wednesday as
Morgan Stanley's first quarterly profit in four quarters and a robust profit
from Wells Fargo drove a rallying financial sector.
The Dow Jones Industrial Average recently traded 50 points, or 0.5%,
higher at 10 089. Financials, including American Express and JPMorgan Chase,
were among its leading gainers.
Helping spur the move, Morgan Stanley gained 6% to $34.47, as it
snapped three straight quarterly losses by posting a profit in the third
quarter thanks to investment banking and fixed income sales and trading.
Still, earnings were down 91% from the year earlier period, which benefited
from a large one-time gain.
In addition, Wells Fargo posted $3.2bn in third-quarter net
income on Wednesday, though its loan losses and non-performing loans
continued to rise.
"That Wells Fargo number was very good and confirmed some of what we
were hoping," said Thomas Nyheim, a portfolio manager with Christiana Bank &
Trust. "That they could do this even with their acquisition of Wachovia,
that's the one thing that really sticks out this morning.
- I-Net Bridge