03 February, 2012 18:01

Reginald Tachie-Menson
BusinessLIVE

Stronger rand restrains JSE

The JSE was slightly down on Friday off session lows but remained in the red on the back of the strong rand.

Image: Gallo-Getty

A local trader said that European markets had become firmer after key US jobs data was released. The local bourse also benefited from the data but was held back by the strength of the rand.

At 17:00, the JSE all-share index ended in flat territory (0.05%). An intraday record was set for industrials (36,185.40) and banks (45,408.08).

Gold stocks lessened 1.95%, platinums moved 1.29% lower and resources dipped 0.51%.

Financials generated 0.78%, banks added 0.69% and industrials collected 0.21%.

The rand was bid at 7.57 to the dollar from 7.65 at the JSE's close on Thursday. Gold was quoted at US$1,735.32 a troy ounce from US$1,750.48/oz at the JSE's previous close, while platinum was at US$1,617.54/oz, from US$1,625/oz before.

Dow Jones Newswires reported that US stocks moved higher after a closely watched government payrolls report showed the economy added more jobs than expected and the unemployment rate edged lower in January.

The Dow Jones Industrial Average had advanced 0.97% at the time of the JSE close.

The US Labor Department's January data showed nonfarm payrolls rose 243,000 last month, marking the biggest gain since last April. The jobless rate fell by two-tenths of a point to 8.3%, the lowest it is has been since February 2009. Both numbers beat expectations. Economists surveyed by Dow Jones Newswires expected a slowing to 125,000 jobs from December's 200,000. The unemployment rate was expected to hold steady at 8.5%.

European markets moved higher on the back of encouraging economic data. The eurozone composite purchasing manager's index confirmed private-sector activity expanded in January, with the index rising to 50.4 from 48.3 in December.

Separately, Goldman Sachs raised targets for the Stoxx Europe 600, citing reasons including stronger-than-expected macro data, a favourable reaction to the European Central Bank's refinancing operation and progress on sovereign debt discussions.

On the JSE, Anglo American (AGL) lifted R5.21 or 1.53% to R345.84, while BHP Billiton (BIL) relinquished two rand at R264 and Sasol (SOL) lost R8.21 or 2.02% to R398.79.

In gold stocks, AngloGold Ashanti (ANG) diminished R6.39 or 1.80% to R349.50, Gold Fields (GFI) gave up R2.81 or 2.20% at R125.19 and Harmony (HAR) dropped two rand or 2.10% at R93.10.

Platinum miner Impala Platinum (IMP) dipped R2.71 or 1.59% to R167.97.

Among other miners, African Rainbow Minerals (ARI) took up R3.26 or 1.68% at R197.80 and Uranium One (UUU) rose R1.27 or 6.45% at R20.97. The trader said the low volume of shares traded did not warrant significant concern.

In industrials, Mondi Plc (MNP) picked up 88 cents or 1.37% to R64.98, and Barloworld (BAW) was up R1.89 or 2.17% to R88.91.

In technology stocks, Datatec (DTC) elevated R2.10 or 4.93% to R44.70 and Altron (ATN) gave up 80 cents or 3.38% to R24.49.

In telecoms, Vodacom (VOD) generated R2.30 or 2.30% at R102.20 and MTN (MTN) dropped R2.30 or 1.66% to R135.99. News that Turkcell Iletisim Hizmetlera AS (Turkcell), which was unsuccessful in attaining the second GSM telecommunications licence in Iran, was looking to bring a case against the South African mobile services provider in a US court, came to the fore late on Thursday.

In banks and financials, Absa (ASA) lifted 160 cents or 1.08% to R149.50, MMI Holdings (MMI) accumulated 50 cents or 2.71% at R18.95 and Old Mutual Plc (OML) collected 42 cents or 2.29% at R18.77. The International long-term savings, protection and investment group said on Friday that it intended to return approximately GBP1 billion of net proceeds from the disposal of its Nordic business to shareholders by means of a special dividend.

Retailer Truworths (TRU) added R1.20 or 1.52% at R80.19.



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