Johannesburg - The JSE ended 167 points higher on
Thursday with resources giving support on the back of a weaker local
currency in what trader said was a quiet session with world markets weaker.
At 17:00 the JSE all share index had edged up 0.63%, with resources up
1.19%, platinum producers gaining 3.33% and gold stocks collecting 0.61%.
Banks lost 1.06% and financials weakened 0.40%, but industrials were up
0.56%.
At 16:43, the rand was bid at 7.47 to the dollar from 7.36 just before
the JSE closed on Wednesday. Gold was quoted at $1 056.42 a troy ounce
from $1 060.30/oz just before the JSE's last close, and platinum was at
$1 360.50/oz, from $1 356.50/oz at its previous close.
"We ended fairly flat today, there wasn't really much happening. The MPC
decision came out as expected and markets didn't really react to that," the
trader said.
"Intraday there is still a lot of volatility, but our market is holding
up quite well if you compare it to eastern and European markets.
"The rand has weakened substantially and is supporting the resource
sector. Also we had production reports for the quarter ended September from
some of the resource companies and those were not bad. With these being the
shares that make a big part of our bourse, we managed to stay afloat," he
said.
Dow Jones Newswires reports that the US stocks were trading near the
flatline on Thursday as a drop in oil prices weighed on energy stocks,
helping offset strong earnings reports and a bigger-than-expected rise in
the Conference Board's index of leading economic indicators.
The Djia opened higher on Thursday thanks to strong earnings results
from the latest wave of companies reporting, including Dow Jones Industrial
Average components Travellers, AT&T and McDonald's. But it pared those gains
and was recently trading down 2 points at 9 948.
Meanwhile, the Standard & Poor's 500 fell 0.3%, weighed down by the
energy sector and materials, though telecoms stocks climbed. The technology-
heavy Nasdaq lost 14 points, as some earnings disappointed. Among the
companies weighing on stocks, Nasdaq component eBay fell 4.8% after it
reported a 29% profit drop and issued disappointing fourth-quarter guidance.
"Investors are paying attention to what the companies are saying and the
guidance is very important for the market, but you come into today and there
is worry over China, the growth centre," said Quincy Krosby, chief
investment strategist at Prudential Annuities. "It's been the centre of the
growth orbit."
The Chinese economy grew 8.9% in the third quarter on the year, lower
than the 9.1% expected by some economists.
In addition, Krosby said the stock market is continuing to take its cues
from the move in the dollar, saying "you see the dollar climbing and this is
the result in the stock market."
The Dow was weighed down by Merck, General Electric and Caterpillar.
At the time the JSE closed, the Djia had edged up 0.23%.
- I-Net Bridge