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Johannesburg - The JSE pared intraday gains to finish weaker as a stronger rand weighed on rand-hedge stocks‚ offsetting buying interest in the mining arena‚ which was spurred by China releasing lower-than-expected CPI numbers‚ which is likely to increase demand for commodities from the world’s second largest economy.
At 17:00‚ the JSE All Share [JSE:J203] index closed down 0.11% at 38 540.81 points and the blue-chip Top 40 - (Tradeable) [JSE:J200] index also ended lower‚ down 0.16%.
The gold‚ platinum and resource indices gained 3.67%‚ 2.48% and 2.03% respectively.
“The JSE all-share index gave up early morning gains as the day progressed‚ led by weaker industrial counters. Heavyweight industrial rand-hedge stocks such as Richemont and SABMiller shed more than 3% and 2% respectively‚ weighing on our local bourse as the rand firmed to below the R9 to the dollar mark‚” said Shaun Murison‚ market analyst at stockbrokerage IG.
“We have‚ however‚ seen a rebound in miners today following lower than expected CPI figures out of China‚ with the news curbing fears of tightening monetary policy‚ and increasing optimism on growth‚ which in turn should fuel demand from the country. We have seen copper‚ often considered a leading indicator in the resource sector‚ rise in excess of 1%‚” he said.
“News of strike resolution at Gold Fields’ Tarkwa and Damang mines in Ghana witnessed the share gaining nearly 3% on the day. The news gave a much needed boost to our gold mining sector after yesterday’s poor production figures released by Harmony‚” he said.
Meanwhile leading European markets were mixed after earlier gaining ground as encouraging UK February industrial numbers provided positive sentiment. The London’s FTSE 100 was 0.49% firmer at 4.56pm local time.
US stocks were little changed as investors eyed the start of earnings season and firm economic readings from overseas‚ Dow Jones Newswires reported.
"People have been treading water‚ looking for opportunities to add stocks while we waited for the next catalyst‚" said Daniel McMahon‚ director of equity trading at Raymond James & Associates. “Everyone pointed to earnings as the next catalyst‚ and here we are. We have the banks starting on Friday. We had Alcoa last night. It's the first pitch of opening day."
The world’s largest aluminium producer Alcoa's shares were little changed after it reported on Monday a quarterly profit that topped analysts' estimates‚ but revenue that fell more than expected. Alcoa is the first among Dow components to release results and these are considered the kickoff to earnings season.
On the JSE‚ Anglo American (AGL) added 1.96% to R232 and BHP Billiton (BIL) gained 1.84% to R263.60 as metal prices rose. Oil giant Sasol (SOL) was up 1.15% at R390.12.
Rand-hedge Richemont (CFR) dropped 3.64% to R67.74‚ SABMiller (SAB) gave back 2.49% to R459.34 and Bidvest (BVT) gave up 1.86% to R227.80.
Bullion counter Gold Fields (GFI) surged 5.28% to R67.61 and AngloGold Ashanti (ANG) closed 3.64% firmer at R204.92.
Steel producer ArcelorMittal (ACL) slumped 4.29% to R26.80 and Alert Steel (AET) gave back 4.44% to R1.29.
Platinum counter Lonmin (LON) soared 6.36% to R40.15 and Anglo American Platinum (AMS) added 2.03% to R352‚ while Jubilee (JBL) bucked the trend giving up 4.46% to R1.07.
At 17:00‚ the JSE All Share [JSE:J203] index closed down 0.11% at 38 540.81 points and the blue-chip Top 40 - (Tradeable) [JSE:J200] index also ended lower‚ down 0.16%.
The gold‚ platinum and resource indices gained 3.67%‚ 2.48% and 2.03% respectively.
“The JSE all-share index gave up early morning gains as the day progressed‚ led by weaker industrial counters. Heavyweight industrial rand-hedge stocks such as Richemont and SABMiller shed more than 3% and 2% respectively‚ weighing on our local bourse as the rand firmed to below the R9 to the dollar mark‚” said Shaun Murison‚ market analyst at stockbrokerage IG.
“We have‚ however‚ seen a rebound in miners today following lower than expected CPI figures out of China‚ with the news curbing fears of tightening monetary policy‚ and increasing optimism on growth‚ which in turn should fuel demand from the country. We have seen copper‚ often considered a leading indicator in the resource sector‚ rise in excess of 1%‚” he said.
“News of strike resolution at Gold Fields’ Tarkwa and Damang mines in Ghana witnessed the share gaining nearly 3% on the day. The news gave a much needed boost to our gold mining sector after yesterday’s poor production figures released by Harmony‚” he said.
Meanwhile leading European markets were mixed after earlier gaining ground as encouraging UK February industrial numbers provided positive sentiment. The London’s FTSE 100 was 0.49% firmer at 4.56pm local time.
US stocks were little changed as investors eyed the start of earnings season and firm economic readings from overseas‚ Dow Jones Newswires reported.
"People have been treading water‚ looking for opportunities to add stocks while we waited for the next catalyst‚" said Daniel McMahon‚ director of equity trading at Raymond James & Associates. “Everyone pointed to earnings as the next catalyst‚ and here we are. We have the banks starting on Friday. We had Alcoa last night. It's the first pitch of opening day."
The world’s largest aluminium producer Alcoa's shares were little changed after it reported on Monday a quarterly profit that topped analysts' estimates‚ but revenue that fell more than expected. Alcoa is the first among Dow components to release results and these are considered the kickoff to earnings season.
On the JSE‚ Anglo American (AGL) added 1.96% to R232 and BHP Billiton (BIL) gained 1.84% to R263.60 as metal prices rose. Oil giant Sasol (SOL) was up 1.15% at R390.12.
Rand-hedge Richemont (CFR) dropped 3.64% to R67.74‚ SABMiller (SAB) gave back 2.49% to R459.34 and Bidvest (BVT) gave up 1.86% to R227.80.
Bullion counter Gold Fields (GFI) surged 5.28% to R67.61 and AngloGold Ashanti (ANG) closed 3.64% firmer at R204.92.
Steel producer ArcelorMittal (ACL) slumped 4.29% to R26.80 and Alert Steel (AET) gave back 4.44% to R1.29.
Platinum counter Lonmin (LON) soared 6.36% to R40.15 and Anglo American Platinum (AMS) added 2.03% to R352‚ while Jubilee (JBL) bucked the trend giving up 4.46% to R1.07.
