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JSE recovers slightly on US data

Johannesburg - The JSE recovered slightly on Thursday as better than expected US data painted a positive picture for the prospect of a global recovery.

US jobless claims declined for the second straight week‚ dropping by 12 000 to 334 000. US retail sales showed American consumers were in better shape with an increase of 0.6% in May.

At 18:00‚ the All Share [JSE:J203] index was up 0.11% with general resources gaining 0.24% and industrials adding 0.19%. Gold and platinum miners remained under pressure with gold counters falling 3.10% and platinum stocks losing 1.64%.

The US data‚ however‚ heightened fears in the market that the US Federal Reserve would wind down its monthly $85bn bond-buying programme. The Fed is expected to provide more clarity on the pace of asset purchases after next week’s Federal Open Market Committee (FOMC) meeting.

“US earnings season kicks off next month and we expect stronger company earnings will help ease fears over the Fed tapering off its stimulus. If the stronger US consumer and improving labour market is supported by an improvement in the state of US company earnings‚ the market will begin to accept the reduction in easing. Stronger earnings will prove this market is ready to stand on its own two feet‚” said Gary Booysen‚ as trader at Vunani Private Clients.

In the mining sector‚ failed talks between Lonmin (LON) and the Association of Mineworkers and Construction Union increased prospects of more labour unrest.

Among individual shares Lonmin (LON) was down 3.04% to R42.38‚ Anglo Platinum (AMS) lost 2.44% to R307.31‚ Impala (IMP) gave up 1.30% to R95.90‚ while Northam (NHM) bucked the trend‚ gaining 1.96% to R36.35

The positive US figures led to a softening in the gold price which was down 0.83% to $1‚376.85 an ounce at 5.57pm.

In the gold sector Anglogold Ashanti (ANG) lost 3.60% to R161‚ Harmony (HAR) fell 3.92% to R37.95 and Gold Fields (GFI) dropped 2.86% to R58.17.

General resources counters were mixed with Sasol (SOL) gaining 1.23% to R426.83‚ while Kumba Iron Ore (KIO) lost 2.25% to R454.24 and Exxaro (EXX) gave up 2.04% to R143.02

Bargain hunting saw retail counters advance after recent heavy losses‚ with Truworths (TRU) gaining 4.60% to R80.20 and Woolworths (WHL) adding 2.97% to R63.49

Rand hedge stocks came under pressure as the rand strengthened to around R9.90 to the US dollar. British American Tobacco (BTI) dropped 1.01% to R543.67 and Richemont (CFR) was down 1.61% to R87.57.

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Rand - Dollar
18.93
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.01
+1.2%
Silver
24.85
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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