JSE edges up on resources
Oct 16 2009 09:46
Johannesburg - The JSE edged 55 points into the
black in early trade on Friday, kept afloat by resource counters which
benefited from a slightly weaker local currency.
At 09:16 the JSE all share index had collected 0.21%, with resources up
0.56% and gold miners flat, up 0.02%, but platinums were off 0.81%.
Banks edged down 0.35%, financials were flat, up 0.06%, as were
industrials, down 0.02%.
The rand was bid at 7.32 to the dollar from 7.27 just before the JSE
closed on Thursday. Gold was quoted at $1 049.86 a troy ounce from
$1 055.89/oz just before the JSE's last close, and platinum was at
$1 343/oz, from $1 346/oz at its previous close.
"We have edged up this morning. There is fresh weakness in the
euro/dollar and that has prompted buying into commodities. Resources are up
slightly this morning," an equities trader said.
"The rand is also slightly weaker. The market has hit technical levels
and has broken 26 200 - it can reach 26 700. The stronger Dow is also
playing a role, but Eastern markets were not that strong.
"It's the weaker rand supporting resources which are in turn keeping us
afloat," he said.
Dow Jones Newswires reports that a surge in oil prices helped Chevron
and Exxon Mobil push the Dow Jones Industrial Average further above the
10 000 level on Thursday, although early morning earnings reports from
Goldman Sachs and Citigroup kept the gains muted.
After closing above 10 000 for the first time in a year on Wednesday, the
DJIA closed up 47.08 points, or 0.47%, to 10 062.94, marking its fifth gain
in six sessions.
The S&P 500 closed up 4.54, or 0.42%, at 1096.56, including a gain of
3.01, or 10%, to 32.80, for Sunoco. Helping the refining giant, Morgan
Stanley analysts said the US refining segment has likely seen the low point
for margins and should now spend the next four years slowly returning.
Morgan Stanley listed Sunoco the "preferred play" bestowing an overweight
rating on the Philadelphia refiner.
"Look at that way the market rallied intraday, there is no coincidence
the intraday low was shortly below that inventory report," said Craig
Peckham, equity trading strategist for Jefferies. "That was the all-clear
for people to got back and revisit their thinking. That demand for crude is
improving is a good thing for equities overall."
Still, the inventory report did little to help financials, which closed
as the S&P 500's worst sector.
Asian share markets are mostly lower on Friday with several markets
reversing early gains as investors awaited fresh leads from major US
corporate earnings.
Japan's Nikkei ended 0.2% higher and the Hang Seng was last up 0.1%.
European stock markets are likely to open cautiously higher as investors
take a prudent stance ahead of more earnings, which continue to mostly
surprise on the upside.
- I-Net Bridge
