Isra-Mart srl: JSE opens up despite weak Asian markets

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Despite weaker Asian markets on persistent concerns about eurozone debt and US growth, the JSE - and some European markets - managed to eke out small gains in early trade on Tuesday.
By 9.23am local time, the JSE all-share index was up 0.45%, with resources adding 0.70%, platinum miners gaining 1.25% and gold miners up 0.50%. Banks added 0.71%, financials garnered 0.44% and industrials collected 0.24%.

The rand was bid at R7.11/$, from R7.12/$ at the JSE's close on Monday. Gold was trading at $1,906.85/oz from $1,896.10/oz at the JSE's previous close, while platinum was at $1,883/oz, from $1,877/oz previously.

A local trader said that the JSE had already started reacting negatively to the poor US jobs data last Friday afternoon. As the Asian markets were shut at that time, they had fallen sharply on Monday, in a catch up reaction to the data.

"Yesterday the JSE was down (2%), but not as much as some other markets. Our top 40 shares are starting to run up - they are coming into good value levels. The gold shares are steady as well and that is helping the top 40.

"The global markets have been hit hard - but we might even find the overseas markets will drift up today. Even though the Dow futures are still in negative territory, they are recovering from their lows," he said.

He added that although he expected the volatility in the markets to continue for some time, he was not surprised to see a rally.

He pointed out that the Dow futures were down as much as 270 points at one stage earlier today, and they are currently just 166 points lower. "So they have come back quite nicely," he said.

The Nikkei closed down 2.21%, Australian shares closed down 1.6%, but in Hong Kong, the Hang Seng was off just 8 points. In London the FTSE was last 21 points higher.

On the JSE, Anglo American added R2.23 to R275.23, while BHP Billiton was up 90c to R223.49. Sasol added R2.85 to R322.98. Among gold shares, Anglogold Ashanti added R1.19 to R330.14 and Gold Fields collected 95c to R118.95 and Harmony was 24c firmer at R97.49.

In platinum stocks, Amplats collected R6.92, or 1.31%, to R535, while Impala Platinum garnered R2.15, or 1.25% to R174.66. Northam jumped 97c, or 2.93%, to R34.10 and Aquarius was R1.20, or 4.58% better at R27.40.

In the industrial sector, BAT advanced 83c to R310.36, while Bidvest advanced R1.42 to R152.69. In banks and financials, ABSA collected R1 to R136.80, Standard Bank added 53c to R96.07 and Firstrand was up 20c, or just over 1%, to R20.06.

In a quiet morning on the corporate news front, diversified industrial company KAP International Holdings reported diluted headline earnings per share of 24.7c for the year ended June from 21.0c a year ago. HEPS from continuing operations rose to 32.7c from 22.7c. Revenue from continuing operations was 10% higher at R4.22 billion, while operating profit before restructuring costs improved by 34% to R265.9 million. A capital distribution of 10c per share was declared. The share price was unchanged at 260c.