CNBC Africa Markets Report

Fri, 12 Sep 2008 16:56
Janice Du Preez

US stocks opened lower after retail sales fell unexpectedly in August and the uncertainty about a rescue for Lehman clouded sentiment further. European shares were trading higher though, boosted by the potential sale of Lehman Brothers in the US. The local All-Share Index was trading more than 1.25 percent higher, buoyed by the resources.

The platinum miners were more than 2.25% higher, with gold mining trading just below 2.25% higher. The prices of the underlying precious metals were trading higher as the dollar lost some ground. Oil was slightly higher as Hurricane Ike became a bit of a threat. The rand was steadier, ditching the earlier weaker levels, but still well above the 8.00 level. Exxaro was trading close to 6% higher after Morgan Stanley rated the stock overweight.

The banks were trading slightly higher, but the market remained cautious ahead of the weekend. The uncertainty surrounding the banks in the US continues to weigh on banks globally, despite the hopes of a potential buyer for Lehman Brothers. Sentiment about Lehman Brothers appears to be quite divergent in different parts of the world, while the market had hoped for another government rescue plan for the beleaguered investment bank.